Sensex soars 728 pts, Nifty ends above 20,000 mark, private banks climb

The domestic stock market rallied today, marked by the Nifty surpassing the 20,000 level for the first time since 18 September 2023. This positive movement was driven by global cues and strong gains in private banks. Autos, banks and IT shares were in demand today. Market confidence was buoyed by dovish statements from US Federal Reserve official Christopher Waller, hinting at a potential interest rate cut in March 2024 if inflation levels decrease. Moreover, the US 10-year bond yield dropped to 4.3% and the dollar index slipped below 103, painting a picture of optimistic market sentiment.

The barometer index, the S&P BSE Sensex jumped 727.71 points or 1.10% to 66,901.91. The Nifty 50 index added 206.90 points or 1.04% to 20,096.60.

Axis Bank (up 3.92%), HDFC Bank (up 1.94%) and ICICI Bank (up 1.44%) boosted the indices.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, surged 4.37% to 12.71.

In the broader market, the S&P BSE Mid-Cap index gained 0.78% while the S&P BSE Small-Cap index advanced 0.40%.

The market breadth was positive. On the BSE, 1,893 shares rose, and 1,821 shares fell. A total of 127 shares were unchanged.

Economy:

During the 42-day festive period of FY2023, vehicle sales in India increased to 37.93 lakh, marking a 19% rise from the previous year`s 31.95 lakh. Significant growth was observed in two-wheelers (21% increase), three-wheelers (41% increase), commercial vehicles (8% increase), and passenger vehicles (10% increase). However, the tractor segment experienced a slight decline of 0.5%. These observations were revealed in the vehicle retail data released by the Federation of Automobile Dealers Associations (FADA).

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.28% to 7.253 as compared with previous close 7.273.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3325, compared with its close of 83.3425 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement lost 0.09% to Rs 62,330.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.15% to 102.89.

The United States 10-year bond yield slipped 1.19% to 4.283.

In the commodities market, Brent crude for January 2024 settlement rose 92 cents or 1.13% to $82.39 a barrel.

Global Markets:

The Dow Jones index futures were up 94 points, indicating a positive opening the US stocks today.

Most European shares advanced while most Asian stocks declined on Wednesday as investors assess comments from the U.S. Federal Reserve board members.

On Tuesday, Federal Reserve Governor Christopher Waller said he was growing more confident that policy was in a place now to bring inflation back under control. However, he maintained that inflation was still too high. Waller also said the Fed might start lowering rates if inflation continues to ease over the next three to five months. In contrast, Governor Michelle Bowman said more rate hikes will likely be needed as evolving dynamics keep inflation elevated.

US stocks rose Tuesday, resuming their November rally, as comments from a Federal Reserve official raised hope that the central bank may not need to raise interest rates further.

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.

Stocks in Spotlight:

Tata Power Company rose 0.94% after Tata Power Renewable Energy (TPREL), a subsidiary of the company, received a Letter of Award (LOA) for developing a 200 MW Firm and Dispatchable Renewable Energy (FDRE) project with SJVN Limited (SJVN).

Bharat Petroleum Corporation (BPCL) gained 1.07%. The company announced that its board has declared an interim dividend of Rs 21 per equity share for the financial year 2023-24.

Yatharth Hospital & Trauma Care Services dropped 10.66% following an order from the Commissionerate of Sagar Sambhag, Madhya Pradesh to take over the premises of Ramraja Hospital, citing government ownership.

Munjal Auto Industries rallied 4.21%, following the rectification of its Income Tax demand from Rs 401.42 crore to Rs 69.74 lakh. This adjustment came subsequent to the company`s application filings and the receipt of a Rectification order for the Assessment Year 2022-23.

Aster DM Healthcare zoomed 19.09%. The company has received approvals from the board its subsidiary Affinity Holdings (Affinity) and from its board of directors to separate the India and GCC businesses into two distinct and standalone entities.

Under the separation plan, Affinity has entered into a definitive agreement with a consortium of investors led by Fajr Capital, a sovereign-owned private equity firm headquartered in the UAE, to invest in Aster�s GCC business.

PCBL advanced 4.74% after the company said that its board has accorded its in-principle approval for acquiring 212,172 shares (representing 100% stake) of Aquapharm Chemicals (ACPL) for an aggregate consideration of Rs 3,800 crore.

Shelter Pharma gained 4.73% after the company secured Rs 1 crore order from Sudan-based Taha Drugs & Chemicals Co. The order includes a bulk quantity of Allvitamins Tablet Nutraceutical, totaling 60000 boxes, and Joemega Capsule Nutraceutical, also amounting to 60000 boxes. The nature of this order is fixed cost, and it is projected to be fulfilled within a time frame of 4 months.

New Listing:

Shares of Indian Renewable Energy Development Agency (IREDA) were locked in an upper circuit of 20% at Rs 59.99 on the BSE, representing a premium of 87.47% as compared with the issue price of Rs 32.

The scrip was listed at Rs 50, exhibiting a premium of 56.25% to the issue price. The stock has hit a low of 49.99. On the BSE, over 381.55 lakh shares of the company were traded in the counter.

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