Record rally: Indices rise for 6th session; Nifty above 20,800

In a remarkable streak, the stock market has achieved its sixth consecutive session of gains, with the Nifty comfortably closing above the 20,800 mark. Despite initial negative cues from Asian markets, the benchmark indices surged to new heights, maintaining upward momentum throughout the trading day. This notable ascent resulted in new intraday milestones being reached.

The upward surge has been attributed to significant advances in power, oil & gas, and banking stocks. Notably, Adani Group stocks experienced a strong rally. Market sentiment has been buoyed by expectations of US Federal Reserve rate cuts and strong institutional buying. The resurgence of FII flows into the Indian market has been fueled by the state election results and promising GDP growth data.

The S&P BSE Sensex, the barometer index, surged by 431.02 points or 0.63% to reach 69,296.14, while the Nifty 50 index rose by 168.30 points or 0.81% to settle at 20,855.10.

Both the Nifty and the Sensex attained all-time highs during mid-afternoon trade, reaching 20,864.05 and 69,381.31, respectively. Additionally, the Nifty Bank index achieved a new record high of 47,230.55.

In the broader market, the S&P BSE Mid-Cap index experienced a 0.14% increase, and the S&P BSE Small-Cap index grew by 0.12%. Notably, the S&P BSE Mid-Cap index and S&P BSE Small-Cap index also reached all-time highs of 35,216.47 and 41,317.67, respectively.

The market breadth was negative. On the BSE, 1,731 shares rose, and 2,031 shares fell. A total of 113 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 3.57% to 13.46.

Economy:

The seasonally adjusted S&P Global India Services Business Activity Index fell to 56.9 in November, one year low from 58.4 in October. Despite falling from October index pointed to a sharp increase in output across the sector.

Meanwhile, the S&P Global India Composite PMI Output Index fell to 57.4 in November as compared with 58.4 in October, indicating substantial pace of expansion.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.10% to 7.264 as compared with previous close 7.271.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3700, compared with its close of 83.3800 during the previous trading session.

MCX Gold futures for 5 February 2023 settlement declined 0.05% to Rs 62,337.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 103.66.

The United States 10-year bond yield slipped 0.82% to 4.252.

In the commodities market, Brent crude for February 2024 settlement declined 48 cents or 0.62% to $78.51 a barrel.

Global Markets:

European shares traded mixed while Asian stocks declined on Tuesday as investors assessed a slew of economic data from across the region.

The Caixin China services purchasing managers� index for November climbed to its highest in three months. This private survey reading came in at 51.5 in November, rising from 50.4 in October and 50.2 in September.

US stocks ended lower on Monday as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.

Stocks in Spotlight:

Adani Group stocks were on fire today. Adani Enterprises, Adani Ports and Special Economic Zone, Adani Power, Adani Energy Solutions, Adani Total Gas and Adani Wilmar surged by 15% to 20%.

Adani Green Energy (AGEL) was locked in an upper circuit of 20% after the power generation company raised $1.36 billion from a consortium of eight international banks to boost its construction financing pool to $3 billion.

Hindustan Construction Co. surged 6.77% after the company said it will sell its Swiss subsidiary for Rs 928 cr.

Brigade Enterprises jumped 3% after the company entered into a joint development agreement with land owners to develop a luxury residential project, spread over 4 acres at Kurubarahalli, Mysore. The developable area of the project will be about 0.40 million sq. ft. with a Gross Development Value (GDV) of Rs 300 crore.

JSW Infrastructure jumped 4.41% after the company�s wholly owned subsidiary, JSW Dharamtar Port entered into share purchase agreement with SP Port Maintenance (Shapoorji Pallonji Group Company) to acquire majority stake in PNP Maritime Services. The JSW Dharamtar Port will acquire 50% plus 1 share of the paid up capital of PNP Port from SP Port Maintenance for total consideration of Rs 270 crore. The said transaction will be completed in 15 days.

Mahindra & Mahindra Financial Services declined 2.75% after the company recorded an overall disbursement of approximately Rs 5,300 crore in November 2023, delivering 16% year on year (YoY) growth.

MOIL fell 0.35% after the company`s production increased 35% YoY to 1.62 lakh tonne in November 2023. During November 2023, the production grew 45.95% from 1.11 lakh tonne recorded in October 2023.

Indian Energy Exchange (IEX) shed 0.69%. The company has achieved 8,371 million units (MU) total electricity volume in November 2023, registering an increase of 13% on YoY basis.

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