Market milestones: Sensex touches 70K, Nifty ends near 21K

The domestic stock market climbed today, with the Sensex breaching the 70,000 mark for the first time and the Nifty reaching a new high of 21,026.10 amid widespread buying activity. Although the market opened higher, it could not sustain these gains and closed off the day`s peaks. Demand was notable for PSU banks, media, and metal shares, while pharma and healthcare stocks experienced decline.

The barometer index, the S&P BSE Sensex advanced 102.93 points or 0.15% to 69,928.53. The Nifty 50 index added 27.70 points or 0.13% to 20,997.10.

UltraTechCement (up 3%), Adani Enterprises (up 1.22%) and ICICI Bank (up 0.60%) boosted the indices.

The Nifty and the Sensex hit all-time highs in morning trade at 21,026.10 and 70,057.83, respectively.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.91% and the S&P BSE Small-Cap index rose 0.71%.

The market breadth was strong. On the BSE, 2,372 shares rose and 1,499 shares fell. A total of 164 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 2.30% to 12.76.

Economy:

India and the EU are in discussions to resolve the issue of import duties on specific information and technology products, following the WTO�s dispute panel ruling. WTO deemed India`s duties on items like mobile phones, integrated circuits as violating trading norms.

According to Ajay Seth, the Economic Affairs Secretary in the Finance Ministry, the introduction of a Central Bank Digital Currency (CBDC) or e-rupee could potentially reduce the cost of cross-border remittances by half, bringing it down to 2-3%.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.22% to 7.282 as compared with previous close 7.266.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3775, compared with its close of 83.4000 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.36% to Rs 61,495.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 104.01.

The United States 10-year bond yield gained 0.33% to 4.261.

In the commodities market, Brent crude for February 2024 settlement lost 57 cents or 0.75% to $75.27 a barrel.

Global Markets:

European markets were mixed while most Asian stocks advanced on Monday as investors assessed November inflation numbers from China, which declined at a faster-than-expected pace.

November inflation numbers from China showed a faster-than-expected decline in consumer prices. The consumer price index fell 0.5% year-on-year. The producer price index fell 3% year-on-year, compared with October�s 2.6% drop.

US stocks hit a new high for the year on Friday after the November jobs report and University of Michigan consumer survey data signaled a resilient economy and cooling inflation, fueling hopes for a so-called soft-landing scenario.

November�s nonfarm payrolls report showed an unexpected drop in unemployment. The jobless rate fell 3.7%. The US economy added 199,000 jobs during November, from 150,000 added in October.

Stocks in Spotlight:

Dr. Reddy`s Laboratories tumbled 5.04% after the company informed that the United States Food & Drug Administration (USFDA) issued a Form 483 with three observations after the inspection conducted at R&D centre in Bachupally, Hyderabad. The good manufacturing practice (GMP) and pre-approval inspection was conducted from 4th to 8th December 2023.

Subros surged 10.73% after the company received a new order from Indian Railways for supply and commissioning of coach roof mounted air conditioners for Rs 25 crore.

SpiceJet jumped 10.19% after the low-cost air carrier announced its plan to list on the National Stock Exchange of India. The company said, "in order to reach wider investor base, the Company shall soon be listing its securities on National Stock Exchange of India."

Tata Motors gained 0.85% after the car maker informed that it will increase the price of its commercial vehicles up to 3% effective from 1 January 2024.

JSW Steel added 0.67%. The steel major said that its consolidated crude steel production for the month of November 2023 jumped by 11% to 22.04 lakh tonnes from 19.94 lakh tonnes steel produced in November 2022.

Cipla declined 1.37%. The company`s wholly-owned subsidiary, InvaGen Pharmaceuticals Inc., voluntarily recalled one lot of Vigabatrin for Oral Solution, USP 500mg, to the consumer level due to packaging issues in USA.

Tata Power Company rallied 3.11%. The company announced that Tata Power EV charging solutions has signed memorandum of understanding (MoU) Indian Oil Corporation (IOCL) to roll out fast and ultra fast electric vehicle (EV) charging points across India.

Mazagon Dock Shipbuidlers advanced 3.01% afte the company announced that it has received an order worth Rs 1,145 crore from Oil and Natural Gas Corporation (ONGC) for the replacement of the pipeline.

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