Market Commentary - End-Session
Indices correct after two-day rally, Nifty ends below 24,200 As on : 26-Nov-24  17:44

The domestic equity benchmarks snapped a two-day winning streak and ended marginally lower on Tuesday. The Nifty 50 index closed slightly below the 24,200 mark, while the Sensex also ended in the red.

Despite mixed global cues, the benchmark indices opened higher, with the Nifty surpassing 24,300. However, the initial optimism quickly faded, and the indices spent most of the day in negative territory. A late buying spree helped to partially recover the day's losses. Sectorally, auto and pharma shares underperformed, while IT and FMCG stocks witnessed buying interest.

The S&P BSE Sensex shed 105.79 points or 0.13% to 80,004.06. The Nifty 50 index lost 27.40 points or 0.11% to 24,194.50.

Adani Enterprises (down 4.78%), Adani Ports & Special Economic Zone (down 3.23%) and Mahindra & Mahindra (down 1.87%) were major drags.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.10% and the S&P BSE Small-Cap index added 0.62%.

The market breadth was positive. On the BSE, 2,224 shares rose and 1,705 shares fell. A total of 102 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.82% to 6.946 as compared with previous close 6.940.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3325 compared with its close of 84.2950 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement shed 0.36% to Rs 75,041.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 106.81.

The United States 10-year bond yield rose 0.82% to 4.300.

In the commodities market, Brent crude for January 2025 settlement added 68 cents or 0.39% to $73.01 a barrel.

Global Markets:

European market declined as investors will keep an eye on the latest merger and acquisition news from the banking sector, after Unicredit offered to buy its fellow Italian lender Banco BPM for roughly 10 billion euros ($10.5 billion).

Asian stocks ended lower on Tuesday following U.S. President-elect Donald Trump's announcement of proposed tariffs on China, Mexico, and Canada.

Trump stated on his Truth Social platform that he plans to implement a 10% tariff on goods from China and a 25% tariff on imports from Mexico and Canada. He cited the need to address issues of illegal migration and drug trafficking across U.S. borders.

Key U.S. economic data is due this week, with the Federal Reserve releasing the minutes from its latest FOMC meeting on Tuesday and U.S. GDP data expected on Wednesday.

On Monday, U.S. stock benchmarks hit record highs. The Dow Jones Industrial Average rose 1%, the S&P 500 gained 0.3% to close at 5,987.40, and the NASDAQ Composite advanced 0.27% to 19,054.84. Markets were buoyed by the nomination of Scott Bessent as Treasury Secretary, continued flows into cyclical sectors, and reports of a potential ceasefire between Israel and Lebanon, which drove oil prices lower.

Investors are also awaiting the PCE Price Index, the Federal Reserve's preferred inflation measure, later this week. Trading volumes are expected to remain light due to the Thanksgiving holiday.

Stocks in Spotlight:

Hindustan Unilever fell 0.17%. The company's board approved the demerger of its ice-cream business into an independent listed entity and incorporation of a wholly owned subsidiary for the proposal. The firm proposed that the shareholders of HUL will receive shares in the new entity in proportion to their shareholding in HUL, subject to necessary approvals and procedures.

Angel One jumped 4.07% after the company's wholly-owned subsidiary, Angel One Asset Management Company (AMC), received approval from the Securities and Exchange Board of India (SEBI) to act as AMC for Angel One Mutual Fund.

Swiggy spurted 7.06% to Rs 461.70 after a foreign broker initiated coverage on the counter with a 'buy' rating and a target price of Rs 515. The brokerage highlighted that Swiggy is well-positioned for growth, currently trading at a 35% discount to Zomato.

Power Grid Corporation of India fell 1.21%. The company said it has been selected as the successful bidder for the transmission project to evacuate 3.5 GW of power from Rajasthan Renewable Energy Zones (REZ).

Zomato added 2.39% after the company's board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 265.91 per share.

Further, the food delivery company informed that it has received communication regarding liquidation of Zomato Internet LLC (ZIL), a step down subsidiary of Zomato effective from 20 November 2024.

Vodafone Idea soared 7.88% after the Union Cabinet reportedly approved the waiver of bank guarantees (BGs) for spectrum purchased before 2022.

Akums Drugs and Pharmaceuticals fell 4.59%. The company said that its wholly owned subsidiary Maxcure Nutravedics has entered into a collaboration agreement with Jagdale Industries for marketing of ready-to-drink nutritional beverages.

The New India Assurance Company jumped 4.96% after the firm informed that it will receive a refund of Rs 1,945.08 crore including interest, from the Income Tax Department for assessment years 2013-14 to 2019-20.

Sagility India zoomed 10% after the company's consolidated net profit surged 235.64% to Rs 117.34 crore on 21.10% rise in revenue from operations to Rs 1,325 crore in Q2 FY25 over Q2 FY24.

IPO Update:

The initial public offer (IPO) of Enviro Infra Engineers received bids for 2,76,83,13,848 shares as against 3,07,93,600 shares on offer, according to stock exchange data at 17:00 IST on 26 November 2024. The issue was subscribed 89.90 times.

The issue opened for bidding on 22 November 2024 and it will close on 26 November 2024. The price band of the IPO is fixed between Rs 140 and Rs 148 per share. An investor can bid for a minimum of 101 equity shares and in multiples thereof.

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