Market Commentary - Mid-Session
Indices trade with minor gains; realty shares rally for 3rd day As on : 04-Dec-24  12:35

The key equity indices bounced back to trade with minor gains after hitting the day's low in early afternoon trade. The Nifty traded above the 24,450 mark after hitting the day's low of 24,366.30. Realty shares extended gains for the third consecutive trading session.

At 12:29 IST, the barometer index, the S&P BSE Sensex rose 166 points or 0.21% to 81,011.75. The Nifty 50 index added 28.20 points or 0.12% to 24,485.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 0.62% and the S&P BSE Small-Cap index rose 0.51%.

The market breadth was positive. On the BSE, 2,240 shares rose and 1,588 shares fell. A total of 146 shares were unchanged.

The three-day meeting of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) begins today, 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.

Economy:

India posted a strong 58.4 services PMI in November 2024, down only a fraction from the prior month's 58.5. During November, services sector employment notably grew at the fastest pace ever recorded since this survey began in 2005. The hiring surge reflected the sector's improving business confidence, growing new orders, and vigorous international demand. At the same time, high food and labour costs drove up input and output prices to their fastest rates in 15 months and nearly 12 years respectively.

Finally, service providers were more confident regarding the year-ahead outlook for business activity. Confidence reached its highest level since May, boosted by predictions of continued demand strength and expectations that marketing efforts will drive new business.

Meanwhile, the HSBC India Composite Output Index posted 58.6 in November, down only marginally from 59.1 in October and therefore indicating a sharp rate of expansion. The goods producing sector recorded the larger slowdown in growth but still posted a faster increase than that see in the service economy. The same trend was evident for new orders.

Service providers signaled sharper cost pressures than manufacturers and subsequently recorded the steeper increase in selling prices.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 0.45% to 14.31. The Nifty 26 December 2024 futures were trading at 24,611.40, at a premium of 126.05 points as compared with the spot at 24,485.35.

The Nifty option chain for the 26 December 2024 expiry showed maximum Call OI of 46.7 lakh contracts at the 26,000 strike price. Maximum Put OI of 61.2 lakh contracts was seen at 24,000 strike price.

Buzzing Index:

The Nifty Realty index rose 1.02% to 1,065.35. The index rallied 4.43% in three consecutive trading sessions.

Oberoi Realty (up 3.94%), Phoenix Mills (up 1.96%), Macrotech Developers (up 1.37%), Prestige Estates Projects (up 0.81%), Brigade Enterprises (up 0.59%), Mahindra Lifespace Developers (up 0.44%), Raymond (up 0.3%) advanced.

On the other hand, Godrej Properties (down 1.22%), Sobha (down 0.49%) and DLF (down 0.37%) edged lower.

Stocks in Spotlight:

Wonderla Holidays jumped 9.04% after the company announced that its board has approved the opening of the issue of qualified institutional placement (QIP) of equity shares with a floor price of Rs 827.85 per share.

Suzlon Energy rallied 4.34% after the company announced that it has expanded its partnership with Jindal Renewables after another order win from one of its subsidiaries.

Indian Energy Exchange (IEX) added 0.28% after the company informed that it has achieved electricity volume of 9,689 million units (MU) in November 2024, registering a growth of 15.7% YoY basis.

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