Equity benchmarks end near the day`s high as US Fed eyes rate cuts in 2024

The domestic equity barometers ended near the day`s high after a strong session on Thursday. The Nifty settled above the 21,150 mark. The dovish narrative from the US Fed at the Federal Open Market Committee (FOMC) meeting lifted the investor spirits and helped the key equity indices scale fresh all-time high levels in trade today.

The barometer index, the S&P BSE Sensex, jumped 929.60 points or 1.34% to 70,514.20. The Nifty 50 index advanced 256.35 points or 1.23% to 21,182.70.

The Nifty 50 and S&P BSE Sensex hit an all-time high at 21,210.90 and 70,602.89, respectively, in trade today.

In the broader market, the S&P BSE Mid-Cap index rose 1.06% and the S&P BSE Small-Cap index gained 0.62%.

The market breadth was positive. On the BSE, 2,026 shares rose and 1,748 shares fell. A total of 118 shares were unchanged.

Among the sectoral indices, Nifty Realty index (up 3.88%), Nifty IT index (up 3.50%) and Nifty Private Bank index (up 1.46%) outperformed the Nifty50 index.

Meanwhile, the Nifty Media index (down 0.38%), the Nifty Consumer Durables index (down 0.11%) and the Nifty Healthcare index (down 0.07%) underperformed the Nifty 50 index.

Economy:

India`s wholesale price inflation surged out of the deflationary zone for the first time since March this year to register a 0.26% increase in November, according to figures released by the Commerce and Industry Ministry on Thursday.

This is the highest level of Wholesale Price Index (WPI) inflation in eight months as wholesale prices had been falling in recent months.

The WPI inflation was at -0.52% in October and 2023 and 6.12% in November 2022.

WPI data follows the figures on the country�s retail inflation, which rose to a three-month high of 5.55 per cent in November.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Thursday. Investors embraced the U.S. Federal Reserve�s move to end its interest-rate-hiking cycle and signal cuts for the next year.

The Fed held rates at 5.25%-5.5% for a third straight time and laid out the timeline for at least three quarter-percentage point cuts in 2024 and beyond. The Federal Reserve is willing to cut rates even if the U.S. economy doesn�t dip into a recession in 2024, Chair Jerome Powell said.

Investors in Europe will be keeping a close eye on monetary policy decisions from the European Central Bank and Bank of England on Thursday.

US stocks closed at yet another fresh highs of the year on Wednesday, with the dovish Federal Reserve signals pushing the S&P 500 closer to the all-time high. US Fed Chair Jerome Powell said inflation easing without an unemployment spike is good news, while reiterating that policy has moved well into restrictive territory.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper slipped 0.85% to 7.197 as compared with previous close 7.259.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3200, compared with its close of 83.4025 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement advanced 2.35% to Rs 62,637.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.37% to 102.49.

The United States 10-year bond yield declined 2.15% to 3.949.

In the commodities market, Brent crude for February 2024 settlement added $1.48 or 1.99% to $75.74 a barrel.

Stocks in Spotlight:

State Bank of India (SBI) rose 0.56%. The bank will be signing EURO 70 million Line of Credit with KfW (German Development Bank) for supporting Solar PV projects in India on 14 December 2023 at Bank�s IFSC Gift City Branch, Ahmedabad.

HCL Technologies rallied 3.32% after the company announced that it has been selected by Department of Transport and Planning (DTP), Victoria, Australia to automate the concession entitlement process for public transport users.

Biocon shed 0.16%. Bicara Therapeutics Inc. (Bicara), an associate company of Biocon, has completed its US$165 Million Series C funding. Consequent to this infusion of Series C funding and post allotment of shares by Bicara, the company``s shareholding in Bicara on fully diluted basis will fall below 20% and thereby, Bicara will cease to be an associate company of Biocon.

Punjab National Bank gained 1.28%. CRISIL Ratings has assigned `CRISIL AA+/Stable� rating to Tier-I bonds (under Basel III) of the bank. The agency has reaffirmed its `CRISIL AAA/CRISIL AA+/Stable/CRISIL A1+� ratings on the existing debt instruments of the bank.

Zydus Lifesciences added 0.69%. The pharma company said that it has received final approval from the United States Food and Drug Administration (US FDA) for Cyclophosphamide Capsules. Cyclophosphamide is a chemotherapy medication that slows the growth of cancer cells. It treats lymphoma, myeloma, leukemia, breast cancer and ovarian cancer.

IPO Updates:

The initial public offer (IPO) of DOMS Industries received bids for 11,13,22,422 shares as against 88,37,407 shares on offer, according to stock exchange data at 15:39 IST on Thursday (14 December 2023). The issue was subscribed 12.60 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 750-790 per share. An investor can bid for a minimum of 18 equity shares and in multiples thereof.

The IPO of India Shelter Finance Corporation received bids for 6,30,17,310 shares as against 1,79,10,449 shares on offer, according to stock exchange data at 15:39 IST on Thursday (14 December 2023). The issue was subscribed 3.52 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 469-493 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

The IPO of INOX India received bids for 3,27,86,578 shares as against 1,54,77,670 shares on offer, according to stock exchange data at 13:33 IST on Thursday (14 December 2023). The issue was subscribed 2.12 times.

The issue opened for bidding on Thursday (14 December 2023) and it will close on Monday (18 December 2023). The price band of the IPO is fixed at Rs 627-660 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.

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