Market Commentary - End-Session
Nifty ends below 24,620, FMCG stocks drag As on : 09-Dec-24  17:04

Key equity benchmarks closed lower on Monday as investors braced for key economic data releases. US CPI data on December 11 and India's CPI data on December 12, as well as the US Federal Reserve's interest rate decision on December 18, are closely watched. The Nifty index fell below 24,620, pressured by a sell-off in FMCG stocks. Godrej Consumer's shares slumped 9% following a weaker-than-expected Q3 business update.

The S&P BSE Sensex declined 200.66 points or 0.25% to 81,508.46. The Nifty 50 index lost 58.80 points or 0.24% to 24,619.

Hindustan Unilever (down 3.37%), Tata Motors (down 2.19%) and Reliance Industries (down 1.27%) dragged the indices lower.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.32% and the S&P BSE Small-Cap index rallied 0.46%.

The market breadth was positive. On the BSE, 2,296 shares rose and 1,774 shares fell. A total of 170 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.22% to 14.11.

Numbers to Track:

The yield on India's 10-year benchmark federal rose 1.35% to 6.836 as compared with previous close 6.740.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.7350, compared with its close of 83.6600 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.60% to Rs 77,081.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.18% to 105.86.

The United States 10-year bond yield rose 0.39% to 4.165.

In the commodities market, Brent crude for Feb 2024 settlement gained 74 cents or 1.04% to $ 71.86 a barrel.

Global Markets:

European market advanced. Investors assessed geopolitical upheaval in the Middle East after the ousting of Syrian President Bashar al-Assad over the weekend.

Most Asian stocks advanced on Monday as investors awaited fresh stimulus measures from China. Oil prices remained steady following the dramatic fall of the Syrian government.

China's consumer prices rose less-than-expected in November, climbing 0.2% from a year ago, according to data from the National Bureau of Statistics released Monday.

Investors are gearing up for a pivotal week, marked by a flurry of central bank decisions across four continents, a crucial meeting of Chinese officials, and the release of key US inflation data. This flurry of economic events will shape investment strategies for the remainder of 2024 and set the stage for 2025.

Last Friday, US indices hit record highs on Friday, where technology stocks continued to push higher as stronger-than-expected nonfarm payrolls data did little to deter bets on a December rate cut. Markets were also seeking more cues on what President-elect Donald Trump's policies will entail for the U.S. in the coming years.

The S&P 500 rose 0.3% to 6,090.27 points on Friday, while the NASDAQ Composite rose 0.8% to 19,859.77 points, with both indexes eking out record highs. The Dow Jones Industrial Average lagged, falling 0.3% to 44,642.52 points.

Nonfarm payrolls increased by 227,000 jobs last month, above the expected 202,000, after rising an upwardly revised 36,000 in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing factories in the West Coast.

Investors were waiting to see what a major regime change in Syria will entail for geopolitics in the Middle East, after rebel forces ousted President Bashar al-Assad and took control of Damascus, ending 13 years of civil war. Media reports said al-Assad had landed in Moscow, while Israeli forces had entered Syria.

US investors are eagerly awaiting the release of consumer price index inflation data on Wednesday. This key economic indicator will provide further insights into the health of the US economy and the future trajectory of interest rates.

Stocks in Spotlight:

C E Info Systems soared 16% after the company reversed its decision to invest in the former CEO's new B2C company.

Godrej Consumer Products tumbled 8.72% post-weak Q3 update. Concerns over demand pressures weighed heavily on investor sentiment. The company anticipated mid-single-digit sales growth for Q3, citing subdued demand conditions over the past few months.

Zaggle Prepaid Ocean Services hit an upper circuit of 5% at Rs 551.10 after the company announced that it has entered into an agreement with HDFC Bank (HDFC).

CEAT soared 10.10% after acquiring Camso brand's off-highway construction equipment bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 million.

Sika Interplant Systems soared 7.16% on securing significant new orders for advanced engineering products & services, taking the cumulative order book to Rs 264 crore in FY24-25.

Star Health and Allied Insurance Company slumped 4.12% after IRDAI issued a show cause notice to the company for violating norms.

One 97 Communications fell 0.47% after hitting a 52-week high of Rs 1,007 intraday as Paytm Singapore is selling its stock acquisition rights in Japanese payments firm PayPay for Rs 2,364 crore.

Hyundai Motor India (HMIL) declined 1.82%. The company informed that it aims to install nearly 600 public EV fast charging stations across the country in the next 7 years.

Welspun Corp added 1.67% after the company announced that it has received two large orders each for the supply of HSAW and HFIW coated pipes for Natural Gas Pipeline Projects in the US.

Bondada Engineering surged 7.57% after the company announced that its board of directors has approved the proposal of funds raising upto Rs 185 crore via issuance of equity or debt instruments.

PC Jeweller gained 2.97% after the firm said that its board will meet on Wednesday, 11 December 2024, to approve the issuance of 5,17,11,462 equity shares by way of preferential allotment on private placement basis.

Rites rallied 2.52% after the company has been emerged as top scorer (H-1 bidder) for an order worth $97.13 million from the Ministry of Public Works, Government of the Co-operative Republic of Guyana.

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