Benchmarks rebound, snapping five-day losing streak

The domestic equity indices staged a strong rebound on Monday, snapping a five-day losing streak. The benchmark indices, Sensex and Nifty 50, witnessed significant gains, driven by positive sentiment in regional markets following the release of subdued US inflation data. The Nifty 50 closed above the 23,750 mark, while sectoral indices such as Realty and PSU banks outperformed.

The S&P BSE Sensex gained 498.58 points or 0.64% to 78,540.17. The Nifty 50 index rallied 165.95 points or 0.70% to 23,753.45.

ITC (up 2.07%), HDFC Bank (up 1.63%) and Reliance Industries (up 1.33%) boosted the indices.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.10% and the S&P BSE Small-Cap index fell 0.60%.

 

The market breadth was negative. On the BSE, 1,636 shares rose and 2,452 shares fell. A total of 130 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 10.30% to 13.52.

The NSE will hold a live trading session on Saturday, 1 February 2025, on account of the Union Budget, as per the standard market timings applicable for morning session.

Economy:

India's foreign exchange reserves dipped by $1.98 billion to $652.87 billion as of December 13, according to data shared by the Reserve Bank of India (RBI) on Friday.

The Weekly Statistical Supplement released by the RBI showed that the primary contributor to this decline was the drop in Foreign Currency Assets (FCAs), which fell by $3 billion to $562.58 billion.

Meanwhile, gold reserves were up by $1.12 billion, bringing the total to $68 billion.

The Special Drawing Rights (SDRs) dipped by $35 million, now totaling $17.99 billion, while the reserve position in the International Monetary Fund (IMF) contracted by $27 million, standing at $42.40 billion.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.52% to 6.893 as compared with the previous close of 6.790.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.1225, compared with its previous close of 85.0400 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement shed 0.12% to Rs 76,332.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.35% to 108.

The United States 10-year bond yield added 0.29% to 4.536.

In the commodities market, Brent crude for February 2025 settlement shed 06 cents, or 0.08% to $72.88 a barrel.

Global Markets:

European and Asian stocks advanced on Monday after the US inflation data came in below expectations, boosting hopes for potential interest rate cuts.

A preliminary estimate for the third quarter, published by the ONS last month, said U.K. GDP grew at 0.1% during the period. However, the final data released on Monday showed 0% GDP growth from the previous quarter.

Relief washed over markets as the US averted a government shutdown. President Biden signed a bill on Saturday, ending a period of uncertainty after Congress passed a temporary funding plan just before the deadline. This deal funds the government until March 14 and includes disaster aid and agricultural assistance.

US stock markets rebounded on Friday. Technology stocks, which had declined sharply after the Fed's decision, saw some recovery on Friday. NVIDIA (+3.1%), Micron (+3.5%), Broadcom (+1.1%), and Intel (+2.4%) all experienced gains.

On Friday, the S&P 500 gained 1.1% to 5,930.90, the Dow Jones Industrial Average rose 1.2% to 42,841.06, and the NASDAQ Composite climbed 1% to 19,572.60.

The PCE price index, a key inflation measure, rose 0.1% in November, slower than the October increase of 0.2%. This brought the annual PCE inflation rate to 2.4%, still above the Fed's 2% target, suggesting persistent inflationary pressures.

Stocks in Spotlight:

Coastal Corporation jumped 1.42% after the company announced that its board has approved a 5-for-1 stock split.

Sunita Tools gains 1.67% after securing a new contract worth Rs 1.35 crore for supplying various mould bases. This is in addition to existing work in progress valued at Rs 10.82 crore.

Larsen & Toubro rose 0.40%. The company informed that its precision engineering systems business vertical of L&T secured 'major order for the supply of K9 Vajra-T artillery platforms to the Indian Army.

Sealmatic India advanced 3.58% after the company and its joint venture, High Technology FZ-LLC (HiTech) has incorporated Sealtech Seals Repairs and Maintenance - L.L.C (SealTech LLC) to set up a dedicated service center in Abu Dabhi.

Piramal Enterprises shed 0.88%. The administrative committee of its board approved the public issuance of secured non-convertible debentures (NCDs) aggregating up to Rs 2,000 crore in one or more tranches.

Mayank Cattle Food surged 4.34% after the company said it appointed 78 new dealers and sub-dealers to expand its distribution network across various regions.

Eco Recycling hit an upper circuit of 5% after its board approved fund raising proposal through issuance of equity shares through qualified institution placement (QIP) for an aggregate amount not exceeding Rs 500 crore.

Suraksha Diagnostic fell 2.11%. The company reported a 21.85% jump in consolidated net profit to Rs 10.15 crore in Q2 FY25 as compared with Rs 8.33 crore in Q2 FY24. Revenue from operations increased 11.18% YoY to Rs 66.75 crore during the quarter ended 30 September 2024.

AGI Greenpac declined 4.29%. The company informed that its board has approved a proposal for raising funds through the issuance of equity shares and/or equity-linked securities for up to Rs 1,500 crore, subject to necessary approvals.

Bharat Electronics (BEL) rose 1.15% after the company received additional orders worth Rs 973 crore since its last disclosure on 9th December 2024.

Redtape fell 0.49%. The companys board scheduled a meeting on 26 December 2024 to consider a proposal of an interim dividend and bonus issue.

IPO Update:

The initial public offer (IPO) of Unimech Aerospace and Manufacturing received bids for 1,79,22,111 shares as against 47,04,028 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 3.81 times.

The issue opened for bidding on 20 December 2024 and it will close on 26 December 2024. The price band of the IPO is fixed between Rs 745 and Rs 785 per share. An investor can bid for a minimum of 19 equity shares and in multiples thereof.

The IPO of Ventive Hospitality received bids for 1,84,68,011 shares as against 1,44,34,453 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 1.28 times.

The issue opened for bidding on 20 December 2024 and it will close on 24 December 2024. The price band of the IPO is fixed between Rs 610 and Rs 643 per share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

The IPO of Senores Pharmaceuticals received bids for 11,84,54,740 shares as against 85,34,681 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 13.88 times.

The issue opened for bidding on 20 December 2024 and it will close on 24 December 2024. The price band of the IPO is fixed between Rs 372 and Rs 391 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

The IPO of Carraro India received bids for 28,77,105 shares as against 1,30,98,803 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed to 0.22 times.

The issue opened for bidding on 20 December 2024 and it will close on 24 December 2024. The price band of the IPO is fixed between Rs 668 and Rs 704 per share. An investor can bid for a minimum of 21 equity shares and in multiples thereof.

The IPO of Sanathan Textiles received bids for 44,24,68,848 shares as against 1,26,22,950 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 35.05 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 305 and Rs 321 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

The IPO of DAM Capital Advisors received bids for 1,70,32,46,902 shares as against 2,08,04,632 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 81.87 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 269 and Rs 283 per share. An investor can bid for a minimum of 53 equity shares and in multiples thereof.

The IPO of Transrail Lighting received bids for 1,12,42,28,360 shares as against 1,39,16,742 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 80.78 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 410 and Rs 432 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

The IPO of Concord Enviro Systems received bids for 5,34,97,626 shares as against 50,15,356 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 10.67 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 665 and Rs 701 per share. An investor can bid for a minimum of 21 equity shares and in multiples thereof.

The IPO of Mamata Machinery received bids for 1,00,91,38,067 shares as against 51,78,227 shares on offer, according to stock exchange data at 17:00 IST on 23 December 2024. The issue was subscribed 194.88 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 230 and Rs 243 per share. An investor can bid for a minimum of 61 equity shares and in multiples thereof.

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