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Domestic equity markets experienced a significant decline on Thursday, with the Nifty index closing below the 23,350 mark. The market's decline was primarily driven by a combination of factors, including heightened geopolitical tensions and the fresh Adani Group crisis. PSU banks and metal stocks bore the brunt of the selling pressure, while IT and private bank stocks bucked the trend and witnessed buying interest.
The Nifty's inability to breach the 200-DMA underscores the prevailing weak sentiment. Immediate support is seen at 23,200, and a breach below this level could trigger further downside. Resistance is placed at 23,550. A decisive move above this level might ignite a market rally.
The barometer index, the S&P BSE Sensex fell 422.59 points or 0.54% to 77,155.79. The Nifty 50 index declined 168.60 points or 0.72% to 23,349.90.
Adani Enterprises (down 22.61%), Adani Ports & SEZ (down 13.53%) and Reliance Industries (down 1.46%) were major drags.
In the broader market, the S&P BSE Mid-Cap index shed 0.37% and the S&P BSE Small-Cap index fell 0.67%.
The market breadth was positive. On the BSE, 1237 shares rose and 2,736 shares fell. A total of 92 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 2.09% to 15.99.
Numbers to Track:
The yield on India's 10-year benchmark federal grew 1.92% to 6.942 compared with the previous close of 6.810.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.5100 compared with its close of 84.4275 during the previous trading session.
MCX Gold futures for the 5 December 2024 settlement rose 0.72% to Rs 76,580.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 106.71.
The United States 10-year bond yield fell 0.50% to 4.384.
In the commodities market, Brent crude for January 2025 settlement added 88 cents or 1.21% to $72.81 a barrel.
Global Markets:
Most European shares rose, while most Asian stocks declined on Thursday, dampened by mixed signals from Nvidia's earnings report, heightened geopolitical tensions and upcoming data. Investors remained cautious, with concerns over Russia-Ukraine conflict weighing on sentiment.
U.S. stocks closed mixed on Wednesday, with Target's disappointing earnings and Nvidia's tempered guidance impacting investor sentiment. While the Dow Jones Industrial Average gained 0.32%, the S&P 500 index ended flat%, and the NASDAQ Composite index fell 0.11%.
Investors were rattled by a nearly 22% slide in Target after the retailer missed expectations for its September quarter earnings. Target steadied in evening trade, although its earnings also raised some questions over weakening retail spending.
Nvidia shares fell more than 1% in aftermarket trade to around $144.0, trimming some losses after falling as much as 2% just after its earnings. Earnings per share rose to $0.81 on revenue of $35.1 billion, higher than expectations of $0.75 in EPS and $33.09 billion in revenue.
Nvidia's quarterly results, while exceeding expectations, fell short of some analysts' hopes for a more significant beat. The company's guidance for the fourth quarter, though slightly above estimates, hinted at a slower pace of revenue growth, raising questions about the sustainability of AI-driven demand. This cautious outlook tempered investor enthusiasm and contributed to the broader market's subdued performance.
Market participants are now focused on a series of U.S. economic indicators, including jobless claims, home sales data, and the Purchasing Managers' Index (PMI). Additionally, several Federal Reserve officials are scheduled to speak, providing insights into the central bank's monetary policy outlook.
Stocks in Spotlight:
Shares of nine Adani group stocks tumbled after U.S. indicted billionaire Gautam Adani and associates for a massive $250 million bribery scandal linked to solar energy projects.
Adani Enterprises (down 22.61%), Adani Energy Solutions (down 20%), Adani Green Energy (down 18.8%), Adani Ports and Special Economic Zone (down 13.5%), Ambuja Cements (down 12%), Adani Total Gas (down 10.4%), Adani Wilmar (down 10%), Adani Power (down 9.15%) and ACC (down 7.3%) slump.
PSP Projects dropped 9.48% amid allegations that US prosecutors have indicted Gautam Adani and his associates for a $250 million bribery scheme. This comes a day after Adani Infra (India) announced a significant stake purchase in PSP Projects.
Strides Pharma Science surged 9.16% after the National Company Law Tribunal (NCLT) approved the formation of OneSource Specialty Pharma, India's first specialty pharma Contract Development and Manufacturing Organization (CDMO). This integration, backed by a recent investment of Rs 801 crore, positions OneSource for significant growth. The company is set to list its shares on the BSE and NSE, and Strides shareholders will receive one OneSource share for every two Strides shares held. The demerger of businesses from Strides and Steriscience into OneSource will be effective from April 1, 2024.
NLC India surged 6.7% after the company's board approved to invest Rs 3,720 crore in its wholly owned subsidiary, NLC India Renewables (NIRL) in one or more tranches for the various renewable projects.
Britannia Industries slipped 1.83% after the company informed that it has received a notice from the Food Safety and Standards Authority of India (FSSAI) to prohibit the sale of one batch of its product.
Dr Reddy's Laboratories (DRL) declined 1.6% after the US Food and Drug Administration (USFDA) concluded its Good manufacturing practice (GMP) inspection with seven observations at API manufacturing facility in Bollaram, Hyderabad.
NBCC (India) slipped 1.8%. The company said that it has bagged a contract worth Rs 202 crore from Rajasthan State Industrial Development & Investment Corporation (RIICO).
Bharat Global Developers hit an upper circuit of 5% after the company's Dubai-based wholly-owned subsidiary received orders for processing and supplying worth Rs 251 crore.
Tata Technologies slipped 1.6%. The company has signed a memorandum of agreement (MoA) with Department of Industries & Commerce, Government of Tripura, Secretariat, Agartala, for ITI Upgrade project for upgrading 19 ITI across Tripura for Rs 95.65 crore.
Praveg declined 1.6%. The company announced its partnership with Lallooji & Sons as the master franchise for marketing and booking of 400 luxury tents at the renowned Rann Utsav 2024-25.
NBCC (India) lost 1.7%. The company has bagged a contract worth Rs 202 crore from Rajasthan State Industrial Development & Investment Corporation (RIICO).
IPO Update:
The initial public offer (IPO) of NTPC Green Energy received bids for 54,96,35,370 shares as against 59,31,67,575 shares on offer, according to stock exchange data at 17:00 IST on 21 November 2024. The issue was subscribed 0.93 times.
The issue opened for bidding on 19 November 2024 and it will close on 22 November 2024. The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.
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