Market Commentary - End-Session
Benchmarks rise for 5th day, Nifty ends near 21,800; M&M jumps about 3% As on : 28-Dec-23  17:51

The domestic stock market saw significant gains on Thursday with both NSE Nifty and BSE Sensex hitting new all-time highs. Trading was volatile due to December F&O series expiry today. Despite lingering concerns about soaring valuations, the overall mood remains optimistic, buoyed by enthusiastic retail participation. However, amidst the jubilation, it's crucial to remain vigilant of potential risks, including China's economic resurgence and possible disruptions in the Red Sea shipping lines, both of which could sway market flows and oil prices. The Nifty settled above the 21,750 mark. Looking ahead, investors can brace for immediate resistance for Nifty within the 21,800-21,900 range. Among sectors, energy, FMCG and healthcare stocks were in demand. On the other hand, IT and consumer durables stocks lagged.

The barometer index, the S&P BSE Sensex, was up 371.95 points or 0.52% to 72,410.38. The Nifty 50 index advanced 123.95 points or 0.57% to 21,778.70. In five trading sessions, the Sensex rose 2.7% while the Nifty 50 climbed 2.97%.

Mahindra & Mahindra (up 2.81%), ITC (up 1.62%) and Reliance Industries (up 0.75%) boosted the indices.

The benchmarks, Nifty50 and Sensex hit a fresh all-time high of 21,801.45 and 72,484.34 respectively. Further, the Nifty Bank index also registered its fresh record high today at 48,636.45.

In the broader market, the S&P BSE Mid-Cap index gained 0.64% and the S&P BSE Small-Cap index added 0.20%. The market breadth was negative.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.68% to 15.14.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.04% to 7.202 as compared with previous close 7.205.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1900, compared with its close of 83.3475 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement declined 0.34% to Rs 63,464.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.28% to 100.71.

The United States 10-year bond yield advanced 0.83% to 3.819.

In the commodities market, Brent crude for February 2024 settlement lost $1.17 or 1.47% to $78.48 a barrel.

Oil prices steadied Thursday as continued jitters over global trade disruptions due to tensions in the Middle East were balanced by a surprise increase in U.S. crude inventories.

Global Markets:

Asian shares advanced while European stock markets retreated Thursday, with investors taking some of the recent profits off the table as the trading year nears the end.

On Wednesday, US stocks closed higher, with the S&P 500 inching up to 4,781.58 and the Nasdaq Composite adding to 15,099.18. The Dow Jones Industrial Average also rose by 111.19 points to close at 37,656.52.

New Listing:

Shares of Azad Engineering settled at Rs 677.10, representing a premium of 29.22% as compared with the issue price of Rs 524.

The scrip was listed at Rs 710, exhibiting a premium of 35.5% to the issue price.

The stock has hit a high of 727.50 and a low of 670.05. On the BSE, over 7.80 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Adani Enterprise declined 1.07%. Adani Global, Mauritius, a wholly owned subsidiary of the company has executed a term-sheet for formation of joint venture (JV) with UAE-based Sirius International Holding on 28 December 2023.

Canara Bank rose 1.92%. The bank is in the process of listing its mutual fund subsidiary Canara Robeco Asset Management Company, on the stock exchanges by way of initial public offer (IPO).

Sula Vineyards rallied 4.38%. The company said its wine tourism has achieved new records over Christmas weekend. On December 24th, over 5,000 visitors entered the gates of Sula, a first for a single day. From December 23rd to 25th, visitor numbers also set single-day and three-day records, totaling over 12,000 visitors at Sula?s Nashik and Bengaluru wine tourism facilities.

Zomato declined 3.03% after the company received a show cause notice from the Directorate General of GST Intelligence, Pune Zonal Unit for an alleged tax liability of Rs 401.70 crore along with interest and penalty thereon.

Larsen & Toubro (L&T) shed 0.72%. The EPC major announced that its construction arm has secured large orders for its power transmission & distribution business in the Middle East region. As per L&T classification, the value of the ?Large? project lies between Rs 2,500 crore to Rs 5,000 crore.

Central Bank of India gained 2.32% after the bank announced that it entered into a strategic co-lending partnership with Kisetsu Saison Finance (India) to offer micro, small and medium enterprises (MSME) loans at competitive rates.

Confidence Petroleum India fell 0.96%. The company said that its subsidiary Confidence Enterprises has received Letter of acceptance from Bharat Petroleum Corporation (BPCL) for a contract worth Rs 67 crore.

KP Energy was locked in an upper circuit of 5% after the firm informed that its board is scheduled to meet on 30 December 2023 to consider bonus issue.

Life Insurance Corporation of India (LIC) gained 0.79% after the life insurer announced the appointment of S Sunder Krishnan as the chief risk officer (CRO) of the company, with effect from 27 December 2023.

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