Raging Bull: Nifty hits record high on GDP Beat

The domestic stock market kicked off December with a bang, as the Nifty 50 index surged to a new high today. This was driven by upbeat GDP data and widespread buying across sectors, with FMCG, realty, and metal sectors leading the gains. India`s GDP growth rate for July-September came in at 7.6%, surpassing expectations and outperforming the RBI`s forecast of 6.5%. The market`s bullish momentum was fueled by increased optimism from foreign institutional investors and positive cues from European markets. Global cues, particularly the performance of the US markets, are further contributing to the positive sentiment.

The barometer index, the S&P BSE Sensex advanced 492.75 points or 0.74% to 67,481.19. The Nifty 50 index added 134.75 points or 0.67% to 20,267.90, after hitting an all-time high of 20,291.55 today.

ITC (up 3.28%), Larsen & Toubro (up 2.52%) and Bajaj Finance (up 1.84%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.96% while the S&P BSE Small-Cap index advanced 0.48%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index hit an all time high of 34,631.35 and 40,718.81, respectively.

The market breadth was strong. On the BSE, 2,109 shares rose and 1,638 shares fell. A total of 125 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 2.42% to 12.38.

Economy:

India�s gross domestic product (GDP) grew 7.6% YoY during the July-September 2023 quarter (Q2 FY24) as compared with the 6.2% growth recorded a year ago, according to the latest official data released on Thursday. India�s economy had grown 7.8% in the April-June 2023 quarter.

The central government`s fiscal deficit widened to Rs 8.04 lakh crore in April-October from Rs 7.02 lakh crore in April-September, data released by the Controller General of Accounts on November 30 showed. At Rs 8.04 lakh crore, the fiscal deficit for the first seven months of the current financial year accounts for 45% of the full-year target of Rs 17.87 lakh crore.

Separately, the combined Index of Eight Core Industries (ICI) increased by 12.1% (provisional) in October 2023 as compared to the Index of October 2022. The production of all eight core industries recorded positive growth in October 2023 over the corresponding month of last year.

Meanwhile, India`s seasonally adjusted S&P Global India Manufacturing Purchasing Managers� Index (PMI) in November improved to 56 from October`s eight-month low of 55.5, indicating a stronger improvement in operating conditions. The reading was below the average for the second fiscal quarter (57.9), but outpaced the series trend.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.15% to 7.290 as compared with previous close 7.279.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2925, compared with its close of 83.3775 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement rose 0.23% to Rs 62,700.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.07% to 103.43.

The United States 10-year bond yield slipped 0.65% to 4.321.

In the commodities market, Brent crude for January 2024 settlement advanced 4 cent or 0.05% to $80.57 a barrel.

Global Markets:

European markets rose, while Asian markets had a mixed close on Friday. China`s manufacturing sector unexpectedly grew in November, with the Caixin purchasing managers` index rising to 50.7 from 49.5 in October.

US stocks ended mixed on Thursday as investors anticipated interest rate cuts following a slowdown in consumer inflation, with the personal consumption expenditures price index rising 3.5% year-over-year, down from 3.7% in the previous month.

November Auto sales impact:

Bajaj Auto declined 0.71%. The company said that it has sold 4,03,003 auto units in the month of November 2023, which is higher by 31% as compared with 3,06,719 units sold in the same period last year.

Tata Motors shed 0.08%. The auto major`s domestic and international sales for November 2023 stood at 74,172 vehicles, down 1.73% as compared to 75,478 units sold in November 2022. The company`s total domestic sales declined by 1% to 72,647 units sold in November 2023 as against 73,467 units sold in the same period last year.

Escorts Kubota rallied 1.89% after the company�s Agri Machinery Business Division sales increased by 3.7% to 8,258 units in November 2023 as against 7,960 units sold in November 2022. While domestic sales rose 6.7% to 7,855 units, tractor exports declined by 32.9% to 403 units in November 2023 over November 2022.

Mahindra & Mahindra declined 1.27%. The auto major announced that its overall auto sales for the month of November 2023 stood at 70,576 vehicles, registering a growth of 21.05% as against 58,303 vehicles sold in November 2022.

Further, the company`s Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during November 2023 were at 32,074 units, recording a growth of 5% as compared to 30,528 units sold in the same period previous year.

TVS Motor Co advanced 2.07%. The 2-wheeler maker reported monthly sales of 3,64,231 units in November 2023, registering a growth of 31% as against 2,77,123 units sold in November 2022.

Eicher Motors fell 0.20%. The firm�s unlisted subsidiary, VE Commercial Vehicle (VECV) reported 5.9% year on year jump in Commercial Vehicles (CV) sales to 5,194 units in November 2023.

Maruti Suzuki India shed 0.19%. The company`s total sales in the month of November 2023 rose 3.39% to 164,439 units as against 159,044 units sold in the same period last year.

Ashok Leyland slipped 3.69% after the company sold 14,053 vehicles in November 2023, which is lower by 3.48% as compared with 14,561 units sold in November 2022.

SML Isuzu tumbled 7.38% after the company sold 647 vehicles in November 2023, which is lower by 11% as against 729 units sold in November 2022.

Stocks in Spotlight:

Dixon Technologies (India) jumped 8%. Padget Electronics, wholly owned subsidiary of Dixon Technologies (India), inaugurated a new smartphone manufacturing plant in the Noida district, Uttar Pradesh on 30 November 2023.

ITD Cementation India added 1.85%. The company has secured a contract for Civil & HydroMechanical Works of 500 MW Hydel Power, Pumped Storage Project worth approximately Rs 1,001 crore excluding GST in Andhra Pradesh.

Infosys fell 0.21%. The firm has collaborated with Shell New Energies UK to accelerate the adoption of immersion cooling services for data centers. This collaboration aims to combine Infosys` capabilities in digital technology with Shell`s expertise in Energy, along with a network of partners, to create a comprehensive offering for green data centers.

Tata Consumer Products rose 0.21%. The FMCG major announced that its board has approved the appointment of Ashish Goenka as Group chief financial officer (CFO), effective from 18 December 2023. The appointment is in line with the company`s focus on building a future ready organization and strengthening organization capability, said the company.

Protean eGov Technologies declined 1.95% after the company�s consolidated net profit jumped 27.65% to Rs 32.78 crore in Q2FY24 as compared with Rs 25.68 crore recorded in Q2 FY23. Revenue from operations stood at Rs 235.69 crore during the quarter, registering growth of 32.66% as against with Rs 177.66 crore posted in Q2 FY23.

Power Grid Corporation of India added 0.67%. The company has been declared as successful bidder under Tariff Based Competitive Bidding to establish two Inter-State Transmission System Projects under Build, Own Operate and Transfer (BOOT) basis.

New Listing:

Shares of Flair Writing Industries closed at Rs 452.70 on the BSE, representing a premium of 48.91% as compared with the issue price of Rs 304.

The scrip was listed at Rs 503, exhibiting a premium of 65.46% to the issue price. The stock has hit a high of 514 and a low of 452.70. On the BSE, over 6.98 lakh shares of the company were traded in the counter.

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