Market rebounds, Nifty settles at 19,889.70; Adani Group stocks rally

The domestic benchmark indices made a strong rebound today following two days of mild declines, driven by buying in oil & gas, power, auto, and metal sectors. However, defensives like pharma and FMCG shares corrected. The market initially rose but later traded in a range. However, a surge in final-hour buying led to a strong close near the day`s high levels. The overall market sentiment is strong. Yet, uncertainty hovers over the outcome of Indian state election results, with Thursday`s exit polls expected to shed light on the situation. Additionally, the upcoming US inflation data and Powell`s speech on Friday are likely to impact global market trends.

The barometer index, the S&P BSE Sensex jumped 204.16 points or 0.31% to 66,174.20. The Nifty 50 index added 95 points or 0.48% to 19,889.70.

Adani Enterprises (up 8.66%), Adani Ports & SEZ (up 5.20%) and Tata Motors (up 3.56%) boosted the indices.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, surged 7.45% to 12.18.

In the broader market, the S&P BSE Mid-Cap index gained 0.30% while the S&P BSE Small-Cap index advanced 0.06%.

The market breadth was positive. On the BSE, 1906 shares rose and 1894 shares fell. A total of 172 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.04% to 7.275 as compared with previous close 7.272.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3500, compared with its close of 83.40 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement lost 0.01% to Rs 61,531.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.01% to 103.21.

The United States 10-year bond yield advanced 0.32% to 4.401.

In the commodities market, Brent crude for January 2024 settlement rose 81 cents or 1.01% to $80.68 a barrel.

Global Markets:

Markets in Europe declined while Asian stocks ended mixed on Tuesday, as investors looked ahead to a crucial inflation report later this week.

Investors will focus this week on the Fed`s preferred measure of inflation on Thursday and euro zone consumer inflation figures for further clarity on the where inflation is headed. Fed Chair Jerome Powell is due to speak on Friday. His words will be scrutinized by traders to gauge where rates may head.

European Central Bank President Christine Lagarde said on Monday the central bank`s fight to contain price growth is not yet done, citing a still strong wage growth and an uncertain outlook even as inflation pressures in euro zone ease.

US stocks edged lower on Monday, with investors taking a post-Thanksgiving pause as the holiday shopping season kicked into high gear.

Stocks in Spotlight:

Adani Total Gas (ATGL) hit an upper circuit of 20% after the company announced initiation of green hydrogen production and blending pilot project at Ahmedabad, Gujarat.

Adani Group stocks rose by 3%-15% as the media reports suggested that the Supreme Court reserved order on probe into Hindenburg charges.

Spencers Retail surged 6.91% after the company disclosed that Natures Basket, a subsidiary, is expected to reduce its debt in due course by Rs 100 crore approximately through a mix of loan restructuring and repayment of loans. Sale of a certain part of the company�s minority stake is under consideration. Spencer`s business will take some more time to generate net profit. It is expected to have positive EBITDA during the current year.

Multi Commodity Exchange of India (MCX) surged 6.85%, following the announcement of the vacancy for the position of managing director and chief executive officer. The selected candidate will assume the role on 10 May 2024, after the current incumbent`s tenure concludes.

Jubilant FoodWorks declined 6.85%. The QSR chain operator announced that its wholly owned subsidiary, Jubilant Foodworks Netherlands B.V. (JFN) will buy the remaining shares of DP Eurasia N.V. (DP Eurasia) for 73.35 million euros.

Maruti Suzuki India added 0.18%. The company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market.

Newgen Software Technologies hit an upper circuit of 5% after the company announced that its board has approved to issue 1 bonus equity shares for each share held. The company has set record date as on Friday, 12 January 2024.

Netweb Technologies India jumped 8.74% after announcing collaboration with NVIDIA to advance AI and high-performance computing capabilities.

Vascon Engineers rallied 4.27%. The company announced that its board will meet on Thursday, 30 November 2023 to consider fund raising by issuing equity shares or any other eligible securities.

Goldiam International rose 2.15% after the company received export orders worth Rs 20 crore for diamond studded gold jewellery.

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