Market Commentary - Mid-Session
Nifty slides below 24,450; broader mrkt outperforms As on : 17-Dec-24  11:31

The headline equity indices traded with significant losses in mid-morning trade. The Nifty slipped below the 24,450 mark. Oil & gas shares extended losses for the second consecutive trading session.

At 11:29 IST, the barometer index, the S&P BSE Sensex, dropped 759.32 points or 0.93% to 80,989.25. The Nifty 50 index slipped 230.85 points or 0.94% to 24,437.40.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.09% and the S&P BSE Small-Cap index added 0.11%.

The market breadth was negative. On the BSE, 1,847 shares rose and 1,980 shares fell. A total of 127 shares were unchanged.

Economy

India's total exports (Merchandise and Services combined) for November 2024 are estimated at USD 67.79 Billion, registering a positive growth of 9.59 percent vis-'-vis November 2023. Total imports (Merchandise and Services combined) for November 2024 are estimated at USD 87.63 Billion, registering a positive growth of 27.47 percent vis-'-vis November 2023.

IPO Update:

The initial public offer (IPO) of International Gemmological Institute (India) received bids for 8,06,86,830 shares as against 5,85,60,902 shares on offer, according to stock exchange data at 11:10 IST on 17 December 2024. The issue was subscribed to 1.38 times.

The issue opened for bidding on 13 December 2024 and it will close on 17 December 2024. The price band of the IPO is fixed between Rs 397 and Rs 417 per share. An investor can bid for a minimum of 35 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Oil & Gas index declined 0.86% to 10,999.70. The index fell 1.43% in two consecutive trading sessions.

Mahanagar Gas (down 1.78%), Oil India (down 1.63%), Gujarat State Petronet (down 1.62%), Indraprastha Gas (down 1.42%), Reliance Industries (down 1.29%), Bharat Petroleum Corporation (down 1.17%), Gujarat Gas (down 0.94%), Oil & Natural Gas Corpn (down 0.87%), GAIL (India) (down 0.84%) and Indian Oil Corporation (down 0.75%) declined.

On the other hand, Aegis Logistics (up 2.13%), Adani Total Gas (up 0.97%) and Petronet LNG (up 0.71%) edged higher.

Stocks in Spotlight:

RailTel Corporation of India added 0.94%. The company said that it has received the work order from Central Warehousing Corporation for works amounting to Rs 37.99 crore.

NITCO rose 1.64% after the company said that it has secured Rs 105.40 crore order from Prestige Estates Projects for the supply of tiles, marble, and mosaic.

Global Markets:

Asian stocks declined on Tuesday as investors awaited a crucial week for central bank policy decisions. The U.S. Federal Reserve is widely expected to cut rates on Wednesday, while the Bank of Japan is likely to maintain its current stance.

This week sees policy meetings from central banks in the United States, Japan, UK, Sweden, Norway, Indonesia, and Thailand. The Bank of England, Norges Bank, and Bank of Thailand are anticipated to hold rates steady, while the Riksbank might opt for a rate cut. Bank Indonesia is expected to raise rates to support the weakening rupiah currency.

Data released on Monday revealed a steeper-than-expected slowdown in China's consumer spending during November, negatively impacting stocks. Retail sales rose only 3% year-on-year, which is the weakest growth in three months and significantly lower than October's 4.8% increase.

In the US, major US technology stocks continued their upward momentum on Monday, propelling the Nasdaq Composite to record highs. However, the Dow Jones Industrial Average lagged behind, reflecting ongoing investor uncertainty about economic policies under the new administration.

The S&P 500 rose 0.38% to 6,074.10 points, while the NASDAQ Composite surged 1.24% to a record high of 20,204.58 points. The Dow Jones Industrial Average fell 0.25% to 43,717.48 points.

The chip sector experienced a rally, mirroring Broadcom Inc.'s continued gains fueled by strong earnings and guidance related to artificial intelligence. The prospect of lower interest rates in the near future also boosted other prominent tech companies like Apple, Amazon, and Alphabet.

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