Benchmarks nudge lower; consumer durables rally for 6th day

The key equity benchmarks traded near the flat line in the early afternoon trade. The Nifty hovered near the 24,700 level. Consumer durables shares witnessed buying demand for the sixth consecutive trading session. The RBI decided to keep the benchmark repo rate unchanged at 6.5%. However, slashed the cash reserve ratio (CRR) by 50 bps to 4%.

At 12:28 IST, the barometer index, the S&P BSE Sensex, added 44.99 points or 0.05% to 81,810.85. The Nifty 50 index lost 2.10 points or 0.02% to 24,706.30.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 0.26% and the S&P BSE Small-Cap index rose 0.52%.

 

The market breadth was strong. On the BSE, 2,351 shares rose and 1,487 shares fell. A total of 138 shares were unchanged.

RBI Monetary Policy Meeting Outcome:

The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted to keep the benchmark repo rate unchanged at 6.5% for the eleventh straight meeting.

After assessing the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 6, 2024) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.

Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

To ease the potential liquidity stress, RBI has decided to reduce the cash reserve ratio (CRR) of all banks to 4.0% of net demand and time liabilities (NDTL) in two equal tranches of 25 bps each, with effect from the fortnight beginning December 14, 2024 and December 28, 2024. This reduction in the CRR would release primary liquidity of about Rs 1.16 lakh crore to the banking system.

The projected real GDP growth for 2024-25 is slashed to 6.6% from 7.2% earlier. The RBI has revised India's Consumer Price Inflation (CPI) forecast for financial year 2025 to 4.8% from 4.5% earlier.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.59% to 14.15. The Nifty 26 December 2024 futures were trading at 24,771.15, at a discount of 64.85 points as compared with the spot at 24,706.30.

The Nifty option chain for the 26 December 2024 expiry showed maximum Call OI of 107.4 lakh contracts at the 26,000 strike price. Maximum Put OI of 59.1 lakh contracts was seen at 24,700 strike price.

Buzzing Index:

The Nifty Consumer Durables index rose 1.11% to 42,196.05. The index jumped 5.04% in six consecutive trading sessions.

Blue Star (up 5.32%), Kalyan Jewellers India (up 2.98%), Century Plyboards (India) (up 2.85%), Titan Company (up 1.66%), Bata India (up 0.99%), Whirlpool of India (up 0.69%), Dixon Technologies (India) (up 0.58%), Amber Enterprises India (up 0.53%), Havells India (up 0.29%) and Rajesh Exports (up 0.29%) advanced.

On the other hand, Kajaria Ceramics (down 0.62%), Crompton Greaves Consumer Electricals (down 0.57%) and Voltas Ltd (down 0.19%) edged lower.

Stocks in Spotlight:

Kernex Microsystems (India) was locked in an upper circuit of 5% after the company announced that it has received an order worth Rs 2,041.40 crore from Chittaranjan Locomotive Works.

Zaggle Prepaid Ocean Services (Zaggle was locked in an upper circuit of 5% after the company announced that it has entered into an agreement with Hitachi India and Blink Commerce.

FSN E-Commerce Ventures (Nykaa) declined 1.52% after its chief executive officer (CEO) and senior management personnel, Nihir Parikh, tendered his resignation due to personal commitments.

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