Market Commentary - End-Session
Benchmarks rise for third day, Nifty above 24,450; Adani Ports rally 6% As on : 03-Dec-24  17:12

Domestic equity benchmarks advanced on Tuesday, marking their third consecutive day of gains. The Nifty 50 index closed above the 24,450 level, driven by strong performances in the PSU bank and metal sectors. The rally has been fueled by optimism surrounding the government's increased capital expenditure spending and expectations of a favorable monetary policy decision from the Reserve Bank of India's Monetary Policy Committee meeting later this week.

The S&P BSE Sensex jumped 597.67 points or 0.74% to 80,845.75. The Nifty 50 index gained 181.10 points or 0.75% to 24,457.15. The 50-unit index has risen 2.27% in three sessions.

Adani Ports & SEZ (up 6.02%), HDFC Bank (up 1.24%) and Reliance Industries (up 1.09%) boosetd the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 0.92% and the S&P BSE Small-Cap index jumped 1.03%.

The market breadth was strong. On the BSE, 2,739 shares rose and 1,220 shares fell. A total of 108 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.22% to 14.37

The three-day meeting of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will begin from 4 December 2024 to 6 December 2024. The outcome of the meeting will be announced by RBI Governor Shaktikanta Das on 6 December 2024.

Meanwhile, according to a report issued by a foreign broker the central government's capital expenditure is projected to increase by 25% YoY in the second half of FY25, focusing on infrastructure development over populist policies. Despite foreign investor outflows, strong domestic inflows and robust capex spending suggest a stable outlook for India's markets.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.73% to 6.826 as compared with previous close 6.820.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.6600 compared with its close of 84.7250 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.20% to Rs 76,844.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 106.24.

The United States 10-year bond yield added 0.62% to 4.219.

In the commodities market, Brent crude for February 2025 settlement declined 73 cents or 1.02% to $72.56 a barrel.

Global Markets:

European stocks advanced on Tuesday, as investors keep an eye on political upheaval in France. France's financial markets are being closely watched on Tuesday after Prime Minister Michel Barnier turned to special constitutional powers to pass a contested budget bill without a parliamentary vote.

Swiss annual inflation advanced to 0.7% in November from 0.6% in the previous month, according to figures from the Federal Statistics Office.

Asian stocks ended higher on Tuesday, buoyed by positive sentiment from the US stock market. Investors are gearing up for a flurry of economic data and commentary from Federal Reserve officials, which will shape expectations for future interest rate decisions.

South Korea's inflation rate rose to 1.5% year-on-year in November, up from 1.3% in October, which had been the lowest in 45 months. The increase comes as the country faces challenges from a weakening Korean won and slowing exports. Last Thursday, the Bank of Korea unexpectedly lowered its interest rate by 25 basis points to 3%, marking the first time since 2009 that the central bank has implemented two consecutive rate cuts.

The US dollar rebounded from a three-day decline following a stern warning from the incoming administration to BRICS nations.

In the US, the S&P 500 extended its record-breaking streak, climbing 0.24%. The Nasdaq 100 gained 1%, while Tesla shares retreated in after-hours trading after a Delaware judge rejected a generous compensation package for CEO Elon Musk. The Dow Jones Industrial Average dipped 0.29%.

Tesla shares surged over 3%, building on recent gains. This followed Roth MTM's upgrade to buy from neutral, which cited the potential benefits of the EV maker's CEO's close ties with the incoming administration.

Stocks in Spotlight:

FMCG shares declined amid growing speculations of a potential GST hike on products like aerated beverages, cigarettes, and other tobacco items to 35% from the current 28%.

The Nifty FMCG index fell 0.39%. Varun Beverages (down 1.67%), Radico Khaitan (down 1.42%), Marico (down 0.99%) and ITC (down 0.97%) slipped.

Torrent Power surged 7.04% after the company announced that its board has approved the opening of issue of qualified institutional placement (QIP) of equity shares with the floor price of Rs 1,555.75 per share.

Tata Power Company advanced 3.04% after the company said that its subsidiary, Tata Power Renewable Energy, successfully commissioned the 431 MW DC solar project at Neemuch in Madhya Pradesh.

Granules India slumped 10.12% after the US drug regulator issued Form 483 with 6 observations following inspection at Gagillapur facility in Hyderabad, Telangana.

C E Info Systems dropped 8.92%, extending losses after the company said it will buy stake in a B2C company floated by its CEO Rohan Verma.

The company announced on 1 December 2024, that will to continue focusing on its core B2B and B2B2C businesses. Rohan Verma, CEO and executive director, MapmyIndia will float a B2C new venture. MapmyIndia will take 10% stake and provide an additional funding of Rs 35 crore via CCD in the new company. The CCD will convert to equity either after 10 years or at a 25% discount to any 3rd party valuation of new company whichever is earlier.

Pricol rose 0.36%. The company's subsidiary, Pricol Precision Products (PPPL) will acquire injection moulded plastic component solutions division of Sundaram Auto Components for total consideration of Rs 215.3 crore.

MOIL jumped 4.37% after the company achieved its best ever November production of 1.63 lakh tonnes of manganese ore in November 2024.

NBCC (India) gained 0.8% after the company announced that it has received a work order worth Rs 213 crore from Motilal Nehru College, New Delhi.

Safari Industries (India) rallied 2.92% after its wholly owned subsidiary, Safari Manufacturing, has successfully commenced commercial production at its newly established manufacturing facility in Jaipur, Rajasthan.

Godavari Biorefineries added 1.29% after the company announced the signing of a strategic international license agreement with Catalyxx Inc for manufacturing biobutanol and higher alcohols in India.

IPO Update:

The initial public offer (IPO) of Suraksha Diagnostic received bids for 1,69,75,690 shares as against 1,34,32,533 shares on offer, according to stock exchange data at 17:00 IST on 03 December 2024. The issue was subscribed 1.26 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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