Market Commentary - End-Session
Indices rebound after 2-day slide, Nifty ends above 21,650; realty shares soar As on : 04-Jan-24  17:23

The domestic stock market advanced on Thursday, ending a two-day losing streak. The Nifty closed above the 21,650 mark, and all sectoral indices on the NSE finished in the green, with realty, financial services, and private bank shares leading the gains. Trading was volatile due to the expiry of weekly index options on the NSE. Despite negative global cues, the market started positively and extended gains throughout the day, with the Nifty closing near the day's high. The rebound was supported by strong monthly business updates from leading banks, emphasizing robust credit growth. The realty sector saw significant gains in anticipation of strong demand in the residential category, supported by healthy housing loans disbursement data from banks. Elsewhere, the Asian market engaged in profit booking in response to indications from the US Fed minutes that rates will be put on hold in the near term.

The barometer index, the S&P BSE Sensex, advanced 490.97 points or 0.69% to 71,847.57. The Nifty 50 index gained 141.25 points or 0.66% to 21,658.60.

Bajaj Finance (up 4.36%), Infosys (up 1.48%) and HDFC Bank (up 1.03%) boosted the indices.

The broader market outperformed the local indices. The S&P BSE Mid-Cap index gained 1.49% and the S&P BSE Small-Cap index added 1.04%.

The market breadth was strong. On the BSE, 2,568 shares rose and 1,262 shares fell. A total of 111 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 5.44% to 13.33.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.11% to 7.224 as compared with previous close 7.216.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2425, compared with its close of 83.3075 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement rose 0.35% to Rs 62726

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.27% to 0.28.

The United States 10-year bond yield rise 1.37% to 0.053.

In the commodities market, Brent crude for March 2024 settlement gained 64 cents or 0.82% to $78.89 a barrel.

Global Markets:

Markets in Europe advanced across the board while its Asian stocks tumbled on Thursday. Chinese markets were battered by Fitch downgrading four major state-owned asset managers.

French inflation figures showed consumer prices rising 3.7% year on year in December, a slight rise from 3.5% in November.

Japan resumed trading after an extended New Year?s holiday during which it witnessed an earthquake and a collision at Tokyo?s Haneda airport involving Japan Airlines.

The Caixin China General Services Business Activity Index rose to 52.9 in December compared with 51.5 in November, climbing for a 12th straight month. The survey also noted that the rate of growth was the fastest since July.

US stocks lost ground on Friday after the Fed minutes revealed officials concluded that interest rate cuts were likely in 2024, though they appeared to provide little in the way of when that might occur.

Stocks in Spotlight:

The Nifty Realty index soared 6.76% to hit a record high of 844.40 mark. Sobha (up 15.82%), Macrotech Developers (up 9.55%), Godrej Properties (up 7.81%), DLF (up 6.55%), Brigade Enterprises (up 6.4%) and Prestige Estates Projects (up 5.61%) soared.

Torrent Power zoomed 7.52% after the firm entered into memorandums of understanding (MoU) of Rs 47,350 crore with Department of Energy & Petrochemicals, Government of Gujarat.

Century Textiles & Industries soared 12.20% following the announcement of planned new projects with significant revenue potential.

Balaji Amines added 2.89% after the Industries, Energy, and Labour Department, Government of Maharashtra approved the 'mega project' status for the company's Solapur expansion project. The status was awarded under the Packaged Scheme of Incentives (PSI) for the manufacture of specialty chemicals by its subsidiary, Balaji Speciality Chemicals, with a proposed investment of Rs 750 crore.

Adani Ports and Special Economic Zone (APSEZ) advanced 2.73% after the company?s board approved a proposal to raise Rs 5,000 crore via non convertible debentures (NCDs).

Meanwhile, the company?s board has also approved the appointment of Ashwani Gupta, the former global chief operating officer (CEO) at Nissan Motors, as the new chief executive officer (CEO) of Adani Ports and Special Economic Zone.

Bajaj Finance rallied 4.36% after the NBFC's new loans booked during Q2 FY24 grew by 26% to 8.53 million as compared to 6.76 million in Q2 FY23.

IndusInd Bank's stock gained 2.88% after the bank reported a robust 20% year-over-year (YoY) growth in net advances to Rs 3.26 lakh crore for the quarter ended 31 December 2023.

Bandhan Bank gained 2.62% after the private bank's total deposits rose 14.8% to Rs 1,17,422 crore in the quarter ended 31 December 2023 from Rs 1,02,283 crore recorded in the quarter ended 31 December 2022.

Ujjivan Small Finance Bank (SFB) jumped 3.87%, fueled by a robust 29% year-over-year (YoY) surge in total deposits to Rs 29,869 crore as of 31 December 2023. The bank?s total deposits were at Rs 23,203 crore as on 31 December 2022. Notably, deposits have risen by 3% as compared to the Rs 29,003 crore base on 30 September 2023.

G M Breweries dropped 4% after the company's net profit declined 12.81% to Rs 22.60 crore in Q3 FY24 as against Rs 25.92 crore reported in Q3 FY23. Revenue from operations (excluding excise duty) grew by 2.14% year on year to Rs 156.95 crore in the quarter ended 31 December 2023.

Angel One advanced 3.07% after the brokerage company?s client base jumped 55.5% to 19.45 million in December 2023 as against 12.51 million in December 2022.

Indian Energy Exchange (IEX) rose 1.75% after the company informed that it has achieved 9,707 million units (MU) overall volume in December 2023, registering an increase of 14.9% increase on YoY basis.

MRF added 0.71%. The tyre maker said that it will buy upto 27.2% stake in First Energy 8 for Rs 35.87 crore to enhance its source of renewable power supply.

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