Indices snap 7-day losing streak, Nifty regains 23,500; M&M climbs 3.5%

The domestic equity benchmarks staged a strong rebound on Tuesday, ending a seven-day losing streak. The Nifty 50 index closed above the 23,500 level, driven by buying interest in auto, realty, and media stocks. The recent sharp decline in the benchmarks had created oversold conditions, making them attractive to bargain hunters. Additionally, a slowdown in FII selling and consistent buying by domestic institutions further bolstered sentiment. Positive cues from other Asian markets also supported buying.

The barometer index, the S&P BSE Sensex rose 239.37 points or 0.31% to 77,578.38. The Nifty 50 index added 64.70 points or 0.28% to 23,518.50. The 50-unit index dropped 4.21% in past seven consecutive trading sessions.

 

Mahindra & Mahindra (up 3.55%), HDFC Bank (up 2.21%) and Infosys (up 0.78%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.94% and the S&P BSE Small-Cap index rallied 0.90%.

The market breadth was positive. On the BSE, 2,362 shares rose and 1,601 shares fell. A total of 96 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 3.26% to 15.66.

The market will remain shut on Wednesday, 20 November 2024, on account of Maharashtra Assembly polls.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.55% to 6.927 as compared with the previous close of 6.935.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.4275 compared with its close of 84.4200 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.93% to Rs 75,746.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 106.38.

The United States 10-year bond yield fell 1.27% to 4.359.

In the commodities market, Brent crude for January 2025 settlement declined 43 cents or 0.59% to $72.87 a barrel.

Global Markets:

The Dow Jones index futures dropped 242 points, signaling a weak opening for U.S. stocks today.

European stocks declined on Tuesday as investors remained cautious ahead of key data releases and earnings reports.

The euro area annual inflation rate fell to 1.7% in September 2024, down from 2.2% in August 2024. In September 2023, the rate was 4.3%. Meanwhile, annual inflation in the European Union decreased to 2.1% in September 2024, compared to 2.4% in August. A year earlier, the inflation rate for the EU stood at 4.9%. These figures were released by Eurostat, the statistical office of the European Union.

Asian shares advanced on Tuesday, boosted by a strong performance from Tesla on Wall Street overnight. Investors also closely analyzed remarks by Chinese financial policymakers at an investment summit in Hong Kong.

Chinese Vice Premier He Lifeng said at a global financiers summit in Hong Kong that China will support Hong Kong innovation and financial reform, enhancing the citys "financial competitiveness." He reiterated Beijings commitment to "explore and implement" measures aimed at building Hong Kong as an "international financial center."

The probability of a rate cut at the December Fed meeting has decreased in recent days, as resilient economic data and potential inflationary pressures from the new administrations policies could limit the scope for easing.

US stocks closed mixed on Monday. While the Dow Jones Industrial Average slipped 0.13%, the S&P 500 gained 0.39%, and the Nasdaq Composite Index rose by 0.60%.

Tesla shares surged over 5% following reports of the incoming administration's focus on autonomous vehicle development. NVIDIA stock closed 1% lower amidst reports of overheating issues with its upcoming AI chips, ahead of its third-quarter earnings report on Wednesday.

The upcoming week's US economic calendar is relatively light, with the key focus being the manufacturing and service sector PMI data due out on Friday. The National Association of Homebuilder's reported its housing market index for November rose to a reading of 46 versus 43 last month.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) surged 3.55% to Rs 2,948.10 after a foreign broker reiterated its "outperform" rating and maintained a target price of Rs 3,440.

Indian Hotels Company (IHCL) jumped 2.18% after unveiling its ambitious 'Accelerate 2030' strategy. The strategy aims to double consolidated revenue, grow its hotel portfolio to 700+, and expand its brand presence. Key growth drivers include traditional businesses, management fees, and new and re-imagined businesses.

Zee Entertainment Enterprises jumped 6.19% after announcing a leadership rejig. Punit Goenka, the company's managing director, stepped down from his position to focus solely on his role as CEO. This decision, according to the company, is aimed at enhancing operational focus and driving growth across core business segments. Additionally, Mukund Galgali, the company's chief financial officer, will also assume the role of deputy CEO, effective immediately. He will continue to report to Goenka.

PG Electroplast surged 8.19% after the company informed that its wholly owned subsidiary, PG Technoplast has signed a definitive agreement with Spiro Mobility to manufacture electric vehicles (EVs) of Spiro Mobility (Spiro) in India.

GMR Airports Infrastructure advanced 3.16% after the company reported a 9% year on year (YoY) increase in passenger traffic across all GMR airports, reaching over 10.7 million passengers in October 2024.

Akums Drugs and Pharmaceuticals hit an upper circuit of 5% after the company entered into an exclusive master sales agreement with Caregen, a South Korean company in the nutraceuticals segment, to sell Caregen's range in India.

Waaree Energies dropped 6.9%. The company reported 14.77% increase in consolidated net profit to Rs 361.65 crore in Q2 FY25 as against Rs 315.09 crore posted in Q2 FY24. Revenue from operations rose 1.04% year on year (YoY) to Rs 3,574.38 crore in the quarter ended 30 September 2024.

Manba Finance advanced 2.46% after the company announced the signing of a memorandum of understanding (MoU) with Piaggio Vehicles to offer customized financing solutions for three-wheelers.

Godavari Biorefineries slipped 2.44% after the companys consolidated net loss increased to Rs 74.99 crore in Q2 FY25 from net loss of Rs 65.14 crore posted in Q2 FY24. Revenue from operations declined 33.73% YoY to Rs 320.05 crore in the quarter ended 30 September 2024.

IPO Update:

The initial public offer (IPO) of NTPC Green Energy received bids for 19,46,53,968 shares as against 59,31,67,575 shares on offer. The issue was subscribed 0.33 times.

The issue opened for bidding on 19 November 2024 and it will close on 22 November 2024. The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.

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