Market Commentary - End-Session
Benchmarks rise for second day, Nifty ends above 24,275 As on : 02-Dec-24  17:20

The key equity benchmarks ended a volatile session on a positive note on Monday, rising for the second day in a row. The Nifty settled above the 24,250 mark after hitting the day's low of 24,008.65 in early trade. The market opened on a cautious note but gained momentum in the second half of the trading session. Key sectors driving the rally included realty, consumer durables and healthcare. Positive Asian cues supported buying sentiment.

The S&P BSE Sensex advanced 445.29 points or 0.56% to 80,248.08. The Nifty 50 index gained 144.95 points or 0.60% to 24,276.05.

Mahindra & Mahindra (up 1.59%), Reliance Industries (up 1.28%) and Infosys (up 1.12%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 1.05% and the S&P BSE Small-Cap index gained 0.84%.

The market breadth was strong. On the BSE, 2,508 shares rose and 1,550 shares fell. A total of 179 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.90% to 14.70.

Economy:

The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) fell from 57.5 in October to a joint 11-month low of 56.5 in November, signaling a softer improvement in the sector's health. However, the pace of growth remained above its long-term average.

Meanwhile, India's foreign exchange (forex) reserves fell for an eighth consecutive week to hit a multi-month low of $656.582 billion in the week that ended on November 22, data from the Reserve Bank of India (RBI) showed.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.11% to 6.826 as compared with previous close 6.751.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.7300 compared with its close of 84.6000 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement fell 0.61% to Rs 76,658.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.52% to 106.29.

The United States 10-year bond yield rose 0.55% to 4.213.

In the commodities market, Brent crude for February 2025 settlement declined 99 cents or 0.71% to $72.55 a barrel.

Global Markets:

European shares were mixed on Monday, after Eurozone Manufacturing PMI slipped to 45.2 in November, down from October's 46.0, reflecting deepening contraction in the sector.

Asian stocks ended higher on Monday as the region began a data-heavy week, with investors closely watching economic reports from Japan, South Korea and China.

The Caixin China General Manufacturing PMI rose to 51.5 in November 2024 from 50.3 in October.

Chinese economic data pointed to a mixed picture. The country's factory activity expanded in November as the official manufacturing index picked up. However, the non-manufacturing sector slipped slightly. The value of new home sales fell last month from a year earlier to 363 billion yuan ($50 billion), reversing October gains. The stock market benchmark'CSI 300'closed Friday's session with gains of 1.14%.

Indonesia's annual inflation rate decreased to 1.55% in November 2024, down from 1.71% in the previous month. This marks the lowest level since July 2021, although it slightly exceeded market expectations of 1.5%.

South Korea's markets stood out on Monday after preliminary trade data showed that exports grew at their slowest pace since September 2023. In November, exports increased by 1.4% year-on-year and marking a sharp decline from the 4.6% rise in October.

In October, Australia's retail sales saw a year-on-year increase of 3.4%, the fastest growth since May 2023. Additionally, sales rose by 0.6% compared to the previous month.

US stock indices surged to record highs on Friday, driven by positive economic indicators and expectations of a Federal Reserve rate cut in December.

The S&P 500 rose 0.6% to a record high of 6,032.4 points, while the Dow Jones Industrial Average rose 0.4% to a peak of 44,910.65 points. The NASDAQ Composite rose 0.8% to 19,218.17 points, but remained below recent record highs.

Trump on Sunday threatened to impose 100% tariffs on the BRICS bloc of countries, which includes China. Trump criticized the bloc's attempts to form its own currency and shift away from the U.S. dollar, threatening to cut the bloc off from U.S. trade over the move. He called for commitments to the dollar from the bloc.

Auto sales update:

Bajaj Auto rose 1.09% after the two-wheeler major reported 5% increase in total auto sales to 4,21,640 units in November 2024 as against 4,03,003 units in November 2023.

Tata Motors added 0.39%. The auto major's total sales stood at 74,753 units in November 2024, registering growth of 0.78% as compared with 74,172 units in November 2023.

Eicher Motors shed 0.28%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV) reported 7.3% year on year growth in commercial vehicles (CV) sales to 5,574 units in November 2024.

Further, the company's monthly motorcycle sales in Nov'24 stood at 82,257 units, which is higher by 2% as compared with 80,251 units in the same month a year ago.

Hero Motocorp lost 0.31%. The company said that its total sales declined 6.36% to 459,805 units in November 2024 as compared with 491,050 units in November 2023.

Maruti Suzuki India added 1.60% after the company's total sales rose 10.39% to 181,531 units in November 2024 as against 164,439 units sold in November 2023.

TVS Motor advanced 2.31% after the two-wheeler maker's total sales jumped 10.16% to 401,250 units in November 2024 as against 364,231 units sold in the month of November 2023.

Mahindra & Mahindra gained 1.59% after the auto major's overall auto sales grew by 12.05% to 79,083 vehicles sold in November 2024 as against 70,576 vehicles sold in November 2023.

Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during November 2024 was at 33,378 units, up 4% from 32,074 units in November 2023.

SML Isuzu slipped 2% after the vehicle manufacturer said that it has sold 539 units in November 2024, registering de-growth of 16.7% from 647 units sold in the same period last year.

Ashok Leyland slipped 1.03%. The company reported a marginal increase in total vehicle sales to 14,137 units in November 2024, compared to 14,053 units sold in November 2023.

Hyundai Motor India (HMIL) declined 1.75% after the company's total sales dropped 6.9% to 61,252 units in November 2024 as compared with 65,801 units in November 2023.

Atul Auto hit an upper circuit of 5% after its total sales grew by 24.58% to 2,828 units in November 2024 as against 2,270 units sold in November 2023.

Steel Strips Wheels (SSWL) rose 2.82%. The company reported a net turnover of Rs 371.52 crore for November 2024, registering a slight decline of 0.12% compared to Rs 371.98 crore posted in November 2023.

Stocks in Spotlight:

Cochin Shipyard hit an upper circuit of 5% after the company announced that it has signed a contract worth Rs 1,000 crore with the Ministry of Defence (MoD), Government of India.

Eraaya Lifespaces gained 2.94% after its subsidiary EbixCash reported strong Q2 FY24-25 performance, driven by growth in foreign exchange and domestic payments. Key highlights included increased GMV in foreign exchange, new partnerships, and expansion of distribution networks.

Biocon jumped 2.80% after US FDA approved YESINTEK (Ustekinumab-kfce), a biosimilar to Stelara. This monoclonal antibody treats Crohn's disease, Ulcerative Colitis, Plaque Psoriasis, and Psoriatic Arthritis.

Meghna Infracon Infrastructure spurted 3.68% on launching residential project RIVIERA in Goregaon West, Mumbai. The project has 30,000 sq ft project with Rs 22 crore sales potential.

Adani Ports and Special Economic Zone advanced 2.18% after the company handled 36 MMT of total cargo in November 2024, driven by containers, which was up by 21% YoY.

KPI Green Energy slipped 1.22%. The company announced that it has received the letter of award (LOA) from Coal India (CIL) for development of a 300 MWAC ground-mounted solar PV plant at Khavda, Gujarat.

Rail Vikas Nigam (RVNL) added 0.26%. The company announced that it has emerged as the lowest bidder for a distribution infrastructure development project worth Rs 642.56 crore from Punjab State Power Corporation (PSPCL).

KEC International rose 0.41%. The company announced that it has secured multiple orders worth Rs 1,040 crore in its Transmission and Distribution (T&D) business in international markets.

IPO Update:

The initial public offer (IPO) of Suraksha Diagnostic received bids for 34,00,068 shares as against 1,34,32,533 shares on offer, according to stock exchange data at 17:00 IST on 2 December 2024. The issue was subscribed 0.25 times.

The issue opened for bidding on 29 November 2024 and it will close on 3 December 2024. The price band of the IPO is fixed between Rs 420 to Rs 441 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

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