Market Commentary - End-Session
Sensex rises 242 pts, Nifty ends near 21,350; NSE VIX at 13.71 As on : 22-Dec-23  17:42

The domestic equity indices closed with modest gains on Friday, with the Nifty settling near the 21,350 mark. Realty, IT, and metal shares saw increased demand, while banks and financial services stocks experienced corrections. Retail enthusiasm and steady investments in the mid and small-cap segment are driving the current market upturn. The mid and small-cap sectors continue to attract attention, benefiting from lower oil prices and the expectation of a potential rate cut in CY24, as indicated by slower-than-expected US GDP growth and weakness in the dollar, suggesting early rate cuts.

The barometer index, the S&P BSE Sensex, advanced 241.86 points or 0.34% to 71,106.96. The Nifty 50 index added 94.35 points or 0.44% to 21,349.40.

Tata Motors (up 2.24%), Infosys (up 1.68%) and Larsen & Toubro (up 1.49%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.74% and the S&P BSE Small-Cap index gained 1.04%.

The market breadth was strong. On the BSE, 2,368 shares rose and 1,396 shares fell. A total of 119 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 0.36% to 13.71.

The stock exchanges will remain closed on Monday, 25 December 2023, on the occasion of Christmas.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.06% to 7.188 as compared with previous close 7.184.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1350, compared with its close of 83.2775 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.68% to Rs 62,925.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.22% to 101.62.

The United States 10-year bond yield slipped 0.65% to 3.871.

In the commodities market, Brent crude for February 2024 settlement rose 68 cents or 0.86 to $79.84 a barrel.

Global Markets:

The Dow Jones index futures were down 111 points, indicating a possible negative opening to equities on Wall Street today.

Most stocks in Europe and Asia declined on Friday, with the Bank of Japan?s October meeting minutes showing board members debated on how to communicate the shift in their yield control stance. Japan?s headline inflation rate slowed to 2.8%, down from 3.3% in October, the slowest pace of inflation since July 2022.

US stocks rebounded on Thursday as the year-end rally resumed. Chip stocks gained, led by Micron Technology after its better-than-expected quarterly forecast.

The third reading of real gross domestic product came in lower than expected. Real gross domestic product rose at an annual rate of 4.9% in the third quarter, according to the third estimate from the Bureau of Economic Analysis. That?s down from the second estimate?s increase of 5.2%.

Stocks in Spotlight:

Allcargo Logistics surged 7.72% while Allcargo Gati slumped 12.37%.

The boards of Allcargo Logistics and Allcargo Gati have approved the composite scheme of arrangement for restructuring of businesses. As per the scheme, International Supply Chain (ISC) business will be demerged into a separate entity, Allcargo ECU. This would include the India part of International Supply Chain business along with the international subsidiaries held under the ECU Worldwide NV.

Express business and contract logistics business would come under the resulting entity Allcargo Logistics (post ISC demerger).

Additionally, Allcargo Gati will merge with Allcargo Logistics, where shareholders of Allcargo Gati will get 63 shares of the post-demerged Allcargo Logistics for every 10 shares they hold.

Further, shareholders of Allcargo will get 1:1 shares in the demerged Allcargo ECU and continue to hold their shares in Allcargo Logistics, which will now be the resulting entity holding express and Contract Logistics business directly. This takes into account 3:1 bonus shares approved by shareholders for Allcargo Logistics recently.

The scheme is expected to be implemented in the period of 10-12 months, accounting for regulatory filings, stock exchange approval, shareholder approval, NCLT approval and ROC filings.

Life Insurance Corporation of India (LIC) jumped 3.73%. The Department of Economic Affairs, Ministry of Finance has decided in the public interest, to grant one-time exemption to Life Insurance Corporation of India to achieve 25% Minimum Public Shareholding (MPS) within 10 years from the date of listing i.e., till May 2032.

Polycab India dropped 4.63% after the media reported that IT department has raided several facilities, offices and warehouses of the company over alleged tax evasion.

WPIL was locked in an upper circuit of 5% after the firm received a turnkey project from Public Health Engineering Department, Government of West Bengal worth Rs 425.35 crore.

State Bank of India declined 1.13%. The largest PSU bank announced that it will sign an agreement with World Bank for obtaining a line of credit of $165 million. The said funds would be used for supporting grid connected rooftop solar photovoltaic (PV) projects in Residential & Institutional sectors, on 22nd December 2023 at Delhi.

GMR Airports Infrastructure rose 1.72%. GMR Airports Limited (GAL), a subsidiary of GMR Airports Infrastructure Limited, and NIIF (National Investment and Infrastructure Fund) entered into binding agreements for NIIF to invest up to INR 6.75 billion in GMR Visakhapatnam International Airport Limited (GVIAL), a special purpose vehicle to develop and operate the Bhogapuram International Airport.

Lupin added 0.58% after LupinLife, the consumer healthcare business of the company announced the launch of Softovac Liquifibre, a 100% Ayurvedic liquid laxative. With this, the company enters the Indian liquid laxative market with this innovative product that is a formulation of Isabgol fibre in liquid form and natural actives such as Sonamukhi, Harad, Mulethi, Saunf, Amaltas and Gulab Dal.

RailTel Corporation of India added 1.75% after the company said that it has received the work order from N F Railway Construction worth Rs 66.83 crore.

Brigade Enterprises shed 0.06%. The company announced the signing of a 10-year agreement with Sidvin Core-Tech India for leasing out 54,300 square feet of Grade A office space at Brigade Deccan Heights in Northwest Bangalore.

Godawari Power & Ispat rose 3% after the firm received an approval from Chhattisgarh Environment Conservation Board to enhance capacity of steel melting shop (SMS) at Raipur from 4,00,000 metric tons per annum to 5,25,000 metric tons per annum.

IPO Updates:

The initial public offer (IPO) of Innova Captab received bids for 3,20,55,177 shares as against 90,78,010 shares on offer, according to stock exchange data at 17:00 IST on Friday (22 December 2023). The issue was subscribed 3.53 times.

The issue opened for bidding on Thursday (21 December 2023) and it will close on Tuesday (26 December 2023). The price band of the IPO is fixed at Rs 426-448 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

Azad Engineering's IPO received bids for 81,58,60,304 shares as against 1,01,22,705 shares on offer, according to stock exchange data at 17:00 IST on Friday (22 December 2023). The issue was subscribed 80.60 times.

The issue opened for bidding on Wednesday (20 December 2023) and it will close on Friday (22 December 2023). The price band of the IPO is fixed at Rs 499-524 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

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