Market ends with strong gains; Nifty settles above 24,200; VIX slumps 4.93%

The domestic equity indices ended with major gains on Monday, gaining for the second day in a row. The market rallied on the BJP-led NDA's strong Maharashtra election performance. The Nifty settled above the 24,200 level. All the sectoral indices on the NSE ended in the green, with PSU bank, oil & gas and realty shares gaining the most.

As per provisional closing, the S&P BSE Sensex rallied 992.74 points or 1.25% to 80,109.85. The Nifty 50 index gained 314.65 points or 1.32% to 24,221.90.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index advanced 1.61% and the S&P BSE Small-Cap index jumped 1.86%.

 

The market breadth was strong. On the BSE, 2,693 shares rose and 1,359 shares fell. A total of 162 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 4.93% to 15.30.

Economy:

India's foreign exchange reserves declined $17.761 billion, reaching $657.892 billion for the week ended November 15, as reported by the RBI on Friday. In the prior week ending November 8, the forex declined $6.477 billion to $675.653 billion.

The central bank also reported that gold reserves reduced by $2.068 billion to $65.746 billion during this period. It also indicated that Special Drawing Rights (SDRs) decreased by $94 million to $18.064 billion.

Additionally, India's reserve position with the IMF also declined by $51 million, reaching $4.247 billion in the reporting week.

IPO Update:

The initial public offer (IPO) of Enviro Infra Engineers received bids for 31,50,53,946 shares as against 3,07,93,600 shares on offer, according to stock exchange data at 15:20 IST on 25 November 2024. The issue was subscribed 10.23 times.

The issue opened for bidding on 22 November 2024, and it will close on 26 November 2024. The price band of the IPO is fixed between Rs 140 to Rs 148 per share. An investor can bid for a minimum of 101 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index added 4.16% to 6,779.10. The index advanced 7.75% in two consecutive trading sessions.

Central Bank of India (up 9.44%), Indian Bank (up 6.19%), UCO Bank (up 6.09%), Indian Overseas Bank (up 5.07%) and Bank of Baroda (up 4.62%), Punjab & Sind Bank (up 4.38%), Punjab National Bank (up 4.27%), Canara Bank (up 4.12%), Union Bank of India (up 4.07%) and Bank of India (up 3.96%) added.

Central Bank of India soared 9.44% after the Reserve Bank of India (RBI) approved the banks entry in the insurance business through a joint venture with Generali group under FGIICL and FGILICL.

Stocks in Spotlight:

UPL rose 0.72%. The company signed strategic partnership agreement with CH4 Global to bring the latters methane-reducing feed supplement, Methane Tamer to millions of cattle per day.

Dev Information Technology jumped 6.61% after its board approved sub-division/ split of the existing equity shares having face value of Rs 5 each, into such number of equity shares having face value of Rs 2 each.

Markolines Pavement Technologies surged 12.60% after the company announced that it has secured a service order worth Rs 72.78 crore from Varanasi Aurangabad NH-2 Tollway.

Escorts Kubota gained 2.91% after its wholly owned subsidiary, Escorts Kubota Finance is intending to commence its business activities of non-banking financial institution from 26 November 2024.

Dhanuka Agritech gained 1.40% after the company signed an agreement with Bayer AG, Germany, for the acquisition of the crop protection active ingredients, Iprovalicarb and Triadimenol, along with the trademark Melody for Iprovalicarb.

Bliss GVS Pharma rose 0.42%. The companys Maharashtra-based facilities received a GMP compliance certificate from the National Agency for Medicines and Medical Devices of Romania post an EU GMP inspection.

Global Markets:

The Dow Jones index futures were up 295 points, signaling a strong opening for U.S. stocks today.

European market advanced on Monday as global market sentiment rose. Bank stocks were also on the move after UniCredit offered to buy its fellow Italian lender Banco BPM for roughly 10 billion euros ($10.5 billion). Banco BPM shares rose as much as 5%, while UniCredit shares pulled back and were last down around 4%.

Shares in Commerzbank meanwhile fell over 6% after UniCredit said that its offer for Banco BPM was separate from its pursuit of the German lender and that any bid for it would come after Banco BPM had been integrated.

Global market sentiment got a boost when President-elect Donald Trump signaled his intention to nominate Key Square Group founder Scott Bessent as U.S. Treasury secretary.

Investors have generally viewed the pick favorably and see the hedge fund manager as someone who will be supportive of equity markets. However, Trump stated that Bessent would help him implement protectionist trade policies, which could have significant negative impacts.

Asian stocks ended mixed as investors awaited a slew of economic data this week, including China's industrial data and India's third-quarter GDP numbers.

On Monday, Singapore released its inflation figures for October. Singapore saw its headline inflation rate fall to 1.4%, the lowest rate of inflation since March 2021.

Looking ahead, October inflation readings from Australia are due Wednesday, and November inflation numbers from Japan's capital city of Tokyo will be released on Friday. Tokyo's inflation figures are widely considered a leading indicator of nationwide trends.

China on Monday kept its medium-term lending rate steady as the countrys central bank seeks to stabilize the Yuan, which has come under pressure following Donald Trumps victory in the U.S. presidential election.

The Peoples Bank of China kept the medium-term lending facility rate unchanged at 2.0% on 900 billion yuan ($124.26 billion) worth of one-year loans to some financial institutions, according to the banks official statement.

On Friday, US stocks moved higher as industries poised to benefit from the incoming administrations pro-business and deregulation policies outperformed. The Dow Jones Industrial Average led major indices, gaining nearly 1% to close at 44,296.51 points. Meanwhile, the S&P 500 added 0.35% to finish at 5,969.30 points, and the NASDAQ Composite rose more modestly, inching up by 0.16% to 19,003.65 points.

Among individual stocks, Boeing Co. surged over 4%, boosting the broader industrials sector. The aircraft manufacturers gains came after it secured a $2.39 billion contract modification from the US Department of Defense.

Economic data released Friday pointed to steady momentum in the US economy. The S&P Global Manufacturing PMI for November rose slightly to 48.8 from Octobers 48.5, signaling a slower contraction. Meanwhile, the more critical Services PMI jumped to 57.0 from October's 55.0, reflecting robust activity in the services sector. These figures, coupled with last weeks strong jobless claims data, reinforce the view of a relatively healthy US economy.

The Reserve Bank of New Zealand is expected to announce a rate cut on Wednesday, a move that could impact regional financial markets.

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