Market Commentary - End-Session
Indices rally for fifth straight day, RBI stance in focus As on : 05-Dec-24  17:09

The domestic equity benchmarks advanced for the fifth consecutive session on Thursday, with the Sensex and Nifty closing at near two-month highs. The Nifty settled above the 24,700 level after hitting the day's low of 24,295.55 in mid-morning trade. IT and energy shares were in demand. The rally was fueled by expectations of a potential rate cut by the Reserve Bank of India (RBI) and liquidity measures to bolster economic growth.

On the global front, the Dow Jones Industrial Average crossed the 45,000 mark for the first time. This rally was spurred by Federal Reserve Chair Jerome Powell's optimistic comments on the US economy. Investors are now eagerly awaiting the Fed's policy meeting later this month for further insights into future rate hikes.

Foreign Institutional Investors (FIIs) have re-entered the Indian market, injecting significant capital into Indian equities this month. This influx of foreign funds has further strengthened the domestic market.

Technically, the Nifty index is facing resistance near the 24,800 level. However, if the index manages to sustain above this level, it could potentially reach the 25,000 mark.

The S&P BSE Sensex surged 809.53 points or 1% to 81,765.86. The Nifty 50 index jumped 240.95 points or 0.98% to 24,708.40. The 50-unit index has risen 3.32% in five sessions.

TCS (up 2.39%), Infosys (up 2.33%), ICICI Bank (up 1.60%) and Reliance Industries (up 0.93%) boosted indices.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.27% and the S&P BSE Small-Cap index added 0.16%.

The market breadth was positive. On the BSE, 2,130 shares rose and 1,841 shares fell. A total of 112 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.53% to 14.53.

The three-day meeting of RBI's Monetary Policy Committee (MPC) began on 4 December 2024 and will conclude on 6 December 2024. The outcome of the meeting will be announced by RBI Governor Shaktikanta Das on 6 December 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.65% to 6.796 as compared with the previous close of 6.794.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.7025 compared with its close of 84.7500 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement shed 0.08% to Rs 77,030.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 106.20.

The United States 10-year bond yield added 0.67% to 4.212.

In the commodities market, Brent crude for February 2025 settlement added 34 cents or 0.47% to $72.65 a barrel.

Global Markets:

Most European stocks rose on Thursday, with French markets in focus after Prime Minister Michel Barnier's government was toppled in a vote of no-confidence Wednesday.

Meanwhile, Asian shares ended mixed, following Wall Street stock benchmarks that reached record highs despite global political turmoil.

Investors are continuing to monitor the political situation in South Korea and France. Less than a day after he declared martial law, lawmakers in South Korea filed a motion to impeach President Yoon Suk Yeol.

The price of bitcoin soared past the long-awaited $100,000 benchmark for the first time ever late Wednesday evening.

In France, Prime Minister Michel Barnier's government was ousted by lawmakers just three months after its formation, plunging the country into further political uncertainty. This follows President Macron's failed attempt to secure a parliamentary majority in recent elections, leaving him without a clear path forward.

Meanwhile, US stock markets closed at record highs on Wednesday, driven by strong earnings reports, particularly from Salesforce, and continued optimism surrounding tech giants like NVIDIA.

The S&P 500 rose 0.6% to a record high of 6,086.49 points, while the NASDAQ Composite rose 1.3% to a peak of 19,732.87 points. The Dow Jones Industrial Average ended up 0.7% at a record high of 45,014.04 points.

Federal Reserve Chair Jerome Powell's comments on the US economy also boosted investor sentiment. Powell expressed confidence in the economy's strength and indicated that the Fed may adopt a more cautious approach to future rate cuts.

Market participants are now eagerly awaiting the release of the US nonfarm payrolls report on Friday, which is expected to provide insights into the labor market's health and its potential impact on interest rate policy.

Stocks in Spotlight:

Shares of companies operating in the capital market segment were in demand. BSE rallied 12% while Central Depository Services (India) soared 8%.

Zomato jumped 4.61% to Rs 299.50, driven by strong investor sentiment and positive industry trends. The stock hit a record high of Rs 304.50 today, buoyed by investor optimism in both the food delivery and quick commerce businesses. With this surge, Zomato is on the brink of crossing the Rs 3 lakh crore market capitalization mark.

Vodafone Idea dropped 4.16%. The company informed its board is scheduled to meet on Monday, 9 December 2024, to consider proposal for raising of funds on a preferential basis not exceeding Rs 2,000 crore.

Suraj Estate Developers rose 1.27% after the company said that its wholly owned subsidiary, Iconic Property Developers, has acquired a vacant parcel of land admeasuring approximately 1,464 square meters situated at Mahim, Mumbai for total consideration of Rs 101 crore.

Adani Energy Solutions rose 1.21%. The company has received a Letter of Intent (LoI) from REC Power Development and Consultancy for establishing a transmission system to evacuate power from the 20 GW Renewable Energy Zone (REZ) in Rajasthan.

Bondada Engineering rose 1%. The company said that it has received a work order worth Rs 108.90 crore from the Bihar Renewable Energy Development Agency under the Mukhyamantri Gramin Solar Street Light Yojana.

RDB Realty & Infrastructure rallied 4.29% after the company's broad approved stocks split of 1 equity share of face value of Rs 1 each into 10 equity shares of face value of Rs 1 each fully paid up.

lndraprastha Gas (IGL) jumped 6.43% after its board scheduled to meet on 10 December 2024, to mull the proposal for issuance of bonus shares to the equity shareholders of the company in the ratio, as may be fixed.

Technopack Polymers hit an upper limit of 20% at Rs 81.60 after the company's board approved a bonus share issue in 1:1 ratio.

Easy Trip Planners added 1.65% after the company announced that its board of directors will meet on 8 December 2024 to consider and approve the proposal for issuing fully paid-up equity shares through a preferential issue.

RailTel Corporation of India shed 0.91%. The company announced that it has received the work order worth Rs 10.64 crore from Gail (India).

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