Indices settle higher on positive global cues

The domestic stock market showed resilience and advanced amid volatility on Thursday. The gains were supported by sectors such as pharma, capital goods and oil & gas. Although the day began with mild gains, initial hours saw a dip, with the Nifty falling near the 20,000 level. However, the market managed to close with marginal gains, primarily influenced by positive global cues and monthly derivatives rollover. The upbeat mood has been fueled by the S&P Global Rating`s upgrade of India`s GDP growth to 6.4% for FY24, bolstering long-term prospects. However, investors may remain cautious ahead of state exit poll and the final result slated to be announced on Sunday.

The barometer index, the S&P BSE Sensex advanced 86.53 points or 0.13% to 66,988.44. The Nifty 50 index added 36.55 points or 0.18% to 20,133.15.

Bharti Airtel (up 1.91%), Titan Company (up 1.89%) and Mahindra & Mahindra (up 1.77%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.83% while the S&P BSE Small-Cap index advanced 0.96%.

The market breadth was negative. On the BSE, 1823 shares rose, and 1881 shares fell. A total of 153 shares were unchanged.

Market valuation of BSE-listed companies crossed a record $4 trillion for the first time on November 29, on the back of positive market sentiment in Indian equities. FIIs turning buyers for five days in a row and DIIs buying aggressively have aided this strong trend. However, this rally has stretched the valuations of domestic equities significantly, pushing India�s market cap GDP ratio to 1.2.

Economy:

Union Cabinet approved extension of the PM Garib Kalyan Anna Yojana for another five years from January 1, 2024, with an estimated cost of Rs 11.8 lakh crore. The scheme was last extended till December 31, 2023.

Indian economy is likely to slow down further to 6.1% in FY25 compared with 6.3% projected in FY24 as global growth remains subdued, the OECD reportedly noted in its latest economic outlook.

Politics:

The exit polls results for all the five states � Rajasthan Madhya Pradesh, Mizoram, Chhattisgarh and Telangana � will be declared after the voting ends in Telangana on Thursday. The assembly elections in these five states were held between November 7 and November 30. The counting of votes will be held on December 3. The state polls are being considered as a semi-final before the 2024 assembly elections.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.36% to 7.278 as compared with previous close 7.252.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3850, compared with its close of 83.3250 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement declined 0.22% to Rs 62,465.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.50% to 103.27.

The United States 10-year bond yield advanced 0.49% to 4.291.

In the commodities market, Brent crude for January 2024 settlement rose $1.38 or 1.66% to $84.48 a barrel. OPEC and its allies, OPEC+, are set to hold a virtual meeting on production cuts.

Global markets:

European shares rose after French inflation slowed to 3.4% in November from 4% in October, while French GDP showed a 0.1% decline in the third quarter. German retail sales increased by 1.1% in October, driven by non-food items, but annual sales declined slightly by 0.1%.

Asian markets closed higher despite China�s factory activity shrinking for a second month, with Japan`s retail sales rising 4.2% and industrial output increasing more than expected. South Korea`s central bank held its benchmark policy rate at 3.5%, anticipating a slowdown in inflation.

US stocks remained stable despite the economy growing more than expected in the third quarter. Investors awaited clarity on inflation from Euro Zone consumer inflation figures and the Fed Chair`s upcoming speech.

Stocks in Spotlight:

Delta Corp jumped 6.49% and Peninsula Land rose 5%. Delta Corp will make an investment of Rs 99.99 crore in Peninsula Land (PLL) to foray into real estate sector. Peninsula Land will issue 1,50,00,000 equity shares and 77,27,000 CCDs at Rs 44. Furthermore, a joint venture is envisaged to be established between Delta & PLL with a capital outlay of Rs 250 crore where Delta will be a majority stakeholder. This JV will help Delta expand into the sector.

UltraTech Cement rose 3.14% after the company acquired a 0.54 mtpa cement grinding assets of Burnpur Cement, located at Patratu in Jharkhand at a consideration of Rs.169.79 crore. The company�s capacity in India now stands at 133 mtpa.

Jupiter Wagons added 2.24%. The company�s board has authorised the opening of the issue for qualified institutions placement (QIP) of equity shares on Wednesday, i.e. 29 November 2023. The board has approved a floor price of Rs. 331.34 for the issue, which is at 2.42% discount to yesterday�s closing price of Rs 339.55. The company�s board will meet on 4 December 2023 to consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers pursuant to the issue.

PCBL gained 1.95%. The company received board approval for entering into a joint venture with Australian company Kinaltek Pty (Kinaltek), for expansion into the battery application market.

Aurobindo Pharma rose 2.13%. The company�s wholly owned subsidiary, Eugia Pharma Specialities received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Budesonide Inhalation Suspension.

Metro Brands rallied 3.28% and FSN E-Commerce Ventures (NYKAA) gained 1.80% after the Foot Locker, Inc., the New York-based specialty athletic retailer, announced the signing of a long-term licensing agreement with both the companies. This partnership will offer the most comprehensive selection of global sportswear and footwear to sneaker fans in India.

Genesys International Corporation surged 8.55%, following the announcement of its Executive Innovation Board (EIB) formation aimed at advancing India`s first comprehensive map stack. The EIB will consist of industry experts with deep knowledge in mobility, e-commerce/logistics, and automotive sectors, playing a vital role in guiding Genesys towards innovative solutions for India`s consumer and infrastructure needs.

New Listing:

Shares of Tata Technologies closed at Rs 1,314.25 on the BSE, representing a premium of 162.85% compared with the issue price of Rs 500.

The scrip was listed at Rs 1,199.95, exhibiting a premium of 140% to the issue price. The stock has hit a high of 1,400 and a low of 1199.95. On the BSE, over 28.46 lakh shares of the company were traded in the counter.

Shares of Gandhar Oil Refinery (India) ended at Rs 301.50 on the BSE, representing a premium of 78.40% as compared with the issue price of Rs 169.

The scrip was listed at Rs 295.40, exhibiting a premium of 74.79% to the issue price. The stock has hit a high of 344.60 and a low of 295. On the BSE, over 29.06 lakh shares of the company were traded in the counter.

Shares of Fedbank Financial Services settled at Rs 140 on the BSE, matching the issue price.

The scrip was listed at Rs 137.75, exhibiting a discount of 1.61% to the issue price. The stock has hit a high of 148 and a low of 133.15. On the BSE, over 17.65 lakh shares of the company were traded in the counter.

Powered by Capital Market - Live News