Indices plunge for 5th day, Nifty settles below 23,600 mark; NSE VIX above 15

The key equity benchmarks suffered significant losses on Friday, marking their fifth consecutive day of decline. The Nifty 50 index closed below the 23,600 level, after reaching an intraday high of 24,065.80. The market witnessed a broad-based sell-off, with realty, PSU banks, and IT stocks leading the decline.

The U.S. Federal Reserve's indication of fewer rate cuts in the coming year has dampened investor sentiment. The strengthening dollar against the rupee has prompted foreign investors to divest from Indian equities. Concerns over potential trade disputes under the Trump administration have added to market volatility.

The barometer index, the S&P BSE Sensex, plunged 1,176.46 points or 1.49% to 78,041.59. The Nifty 50 index tumbled 364.20 points or 1.52% to 23,587.50. In five consecutive trading sessions, the Sensex and Nifty slipped by 4.98% and 4.76%, respectively.

 

Mahindra & Mahindra (down 3.60%), Reliance Industries (down 2%) and HDFC Bank (down 1.19%) were major drags.

The broader market tumbled. The S&P BSE Mid-Cap index dropped 2.43% and the S&P BSE Small-Cap index fell 2.11%.

The market breadth was weak. On the BSE, 1,045 shares rose and 2,950 shares fell. A total of 90 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 3.87% to 15.07.

Numbers to Track:

The yield on India's 10-year benchmark federal paper grew 1.75% to 6.906 as compared with the previous close of 6.899.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.0175 compared with its close of 85.1300 during the previous trading session.

MCX Gold futures for the 5 December 2024 settlement added 0.22% to Rs 75,820.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 108.15.

The United States 10-year bond yield fell 0.59% to 4.541.

In the commodities market, Brent crude for February 2025 settlement declined 72 cents or 0.99% to $72.16 a barrel.

Global Markets:

The Dow Jones index futures were down 214 points, signaling a weak opening for U.S. stocks today.

European shares tumbled on Friday after U.S. president-elect Donald Trump issued a fresh trade threat to the EU, floating on social media the possibility that he would impose new tariffs on the bloc unless it purchased more oil and gas from the United States.

Investors monitored political turmoil in the U.S. and monetary policy decisions from various major economies.

In Europe, the Bank of England kept its policy rate unchanged at 4.75% on Thursday.

Asian stocks ended lower on Friday as investors digested inflation data from Japan as well as an interest rate decision from China.

The Peoples Bank of China held its loan prime rates steady on Friday, leaving the one-year rate unchanged at 3.1% and the five-year rate at 3.6%.

Investors awaited the release of the U.S. Personal Consumption Expenditure (PCE) price index, a key inflation gauge, for further insights into the Federal Reserve's monetary policy stance.

Meanwhile, Japan's consumer price index (CPI) rose slightly more than expected in November. Core CPI, which excludes volatile fresh food items, increased to 2.7% year-on-year, exceeding the previous month's 2.3%.

The Bank of Japan (BOJ) held interest rates steady on Thursday, its final meeting of the year, and provided limited clues on future rate hikes. However, the central bank projected a gradual increase in inflation over the next year.

U.S. stock indices closed mixed on Thursday after a sharp decline the previous day. Investors remained cautious about the Fed's hawkish stance and the potential impact on the economy. The S&P 500 and the Nasdaq Composite fell 0.1%, and the Dow Jones Industrial Average closed 0.04% higher.

The U.S. House of Representatives rejected a Republican-backed funding bill on Thursday, increasing the risk of a government shutdown as the current funding deadline approaches midnight on Friday.

New Listing:

Shares of International Gemmological Institute India were at Rs 470.15 on the BSE, representing a premium of 12.75% as compared with the issue price of Rs 417.

The scrip was listed at Rs 504.85, exhibiting a premium of 21.07% to the issue price. The stock has hit a high of 525 and a low of 454.55. On the BSE, over 51.11 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Restaurant Brands Asia slipped 1.11%. The company has informed that its board has approved raising of funds through issue of instruments or securities including equity shares or any other eligible securities by way of a qualified institutions placement (QIP) upto Rs 500 crore.

KPI Green Energy hit an upper circuit of 5% after the company signed a memorandum of understanding (MoU) with the government of Rajasthan for the development of hybrid solar and wind power projects in Jaisalmer, Rajasthan.

BASF India surged 4.81% after the companys board gave in-principle approval for the demerger of the companys agricultural solutions business into a separate listed entity. The agricultural solutions business generated sales of Rs 2,006.46 crore, representing 14.57% of the total revenues of the company in FY24.

Jyoti hit an upper circuit of 10% after the company announced that its Switchgear Division has secured order worth Rs 32.89 crore for supply of 11 KV VCB Panels.

Kothari Products hit an upper circuit of 20% after the companys board scheduled to meet on 27 December 2024 to consider bonus issue of equity shares.

Sagility India rose 2.94% at Rs 45.19 after a global brokerage firm initiated coverage on the stock with a 'buy' rating and a target price of Rs 52.

Anant Raj rose 0.98% to Rs 845.80 after a domestic broker has initiated coverage on the stock with a 'buy' rating and a target price of Rs 1,100.

Hindustan Construction Company declined 1.32%. The company said that its board has approved the closure of the issue for the qualified institutions placement of equity shares of the company on Thursday, 19 December 2024.

Knowledge Marine & Engineering added 1.60% after the companys board scheduled to meet on Tuesday, 24 December 2024 to consider fund raising and stock split proposal.

Dhanlaxmi Bank rallied 3.82% after the companys board has approved a right issue of equity shares worth Rs 297.54 crore and fixed the price at Rs 21 per share. The issue will open on 8 January 2024 and close on 28 January 2024.

Tata Power Company fell 2.75%. The company said that its subsidiary, Tata Power Renewable Energy has joined hands with Canara Bank to promote the adoption of rooftop solar systems under the PM Surya Ghar Scheme.

GE Vernova T&D India advanced 1.31% after the company received an order worth Rs 400 crore from Sterlite Grid 32 for the supply and supervision of HV equipment for the TBCB project.

Steel Strips Wheels gained 1.73% after the company received nomination for steel wheel business from a leading European original equipment manufacturer (OEM) with a business value of around Euro 15 million.

IPO Update:

The initial public offer (IPO) of DAM Capital Advisors received bids for 14,52,54,503 shares as against 2,08,04,632 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 6.98 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.

Mamata Machinery's IPO received bids for 19,54,62,727 shares as against 51,78,227 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 37.75 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.

Ventive Hospitality's IPO received bids for 1,02,39,485 shares as against 1,44,34,453 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 0.71 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.

Senores Pharmaceuticals' IPO received bids for 1,51,51,550 shares as against 85,34,681 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 1.78 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.

Carraro India's IPO received bids for 11,24,277 shares as against 1,30,98,803 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 0.09 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.

Sanathan Textiles' IPO received bids for 1,80,43,086 shares as against 1,26,22,950 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 1.43 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.

Transrail Lighting's IPO received bids for 7,38,94,750 shares as against 1,39,16,742 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 5.31 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.

Concord Enviro Systems' IPO received bids for 62,15,517 shares as against 50,15,356 shares on offer, according to stock exchange data at 17:00 IST on 20 December 2024. The issue was subscribed to 1.24 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.

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