Share Market Highlights: Sensex skyrockets nearly 1,400 points, Nifty hits record high on BJP’s state election triumph

Equity benchmark indices continued their winning streak, marking a fifth consecutive session of gains on Monday. Investor optimism, initially fueled by robust macroeconomic data, received a further boost from the BJP’s triumph in three state assembly polls.

The BJP’s decisive victories in Madhya Pradesh, Rajasthan, and Chhattisgarh elections further bolstered the positive sentiment established last week, supported by strong macroeconomic indicators and consistent foreign fund inflows, analysts observed.

By the closing bell, the 30-share BSE Sensex surged by 1383.93 points or 2.05% to reach 68,865.12. Similarly, the Nifty soared by 416.95 points or 2.06% to achieve a record high of 20,684.85.

Eicher Motors, Adani Enterprises, Adani Ports, BPCL, and ICICI Bank led the gainers among Nifty firms. Conversely, HDFC Life, Britannia, HCL Tech, Sunpharma, and Wipro closed in negative territory, diverging from the overall trend.

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of its investment offering, the ‘Motilal Oswal Small Cap Fund, an open-ended equity scheme.

Omaxe Ltd.’s shares were up by 4.99% to Rs 81.39, on the BSE. The company incorporated FBD Real Grow as a wholly-owned subsidiary by acquiring the remaining 75% stake.

Bajaj Healthcare’s shares dip 0.88% to Rs 381.50. The company’s CFO, Rupesh Nikam, resigned from the position on Dec 1.

We Win Limited secures order for Selection of Call Centre Service Provider (CSP) from State Health Authority, Uttarakhand valued at Rs. 2.14 crore. The domestic project spans 2 years.

H.G. Infra Engineering Ltd. receives a letter of award from NTPC Limited for a transportation project valued at Rs 36.20 crores. Shares dip 2% to Rs 844.95, on the BSE.

Top gainers on the NSE at 3 pm include- Eicher motors Ltd (7.16%), Adani enterprises Ltd. (7.18%), Adani ports and special economic zone Ltd (5.90%), Bharat petroleum corporation Ltd (5.27%), ICICI Bank (4.26%)

Top losers on the NSE at 3.10 pm include- HDFC life insurance company ltd (0.81%), Britannia industries Ltd (0.62%), Sun pharmaceuticals industries Ltd (0.08%) WIPRO Ltd. (0.04%), Titan company ltd. (0.03%)

3,997 stocks were traded on the BSE, of which, 2,415 advanced, while 1,401 declined and 181 stocks remained unchanged. As many as 427 stocks hit a 52 week high and 34 stocks hit a 52 week low at 3 pm.

Shares of Adani group firms continued to attract heavy demand in the afternoon trade on Monday, with Adani Green Energy trading higher by 8 per cent. 

The rally in all the 10 listed group companies mirrored the broader upswing in the domestic markets, fuelled by optimism regarding the BJP government’s returning to power in 2024 after the party’s victory in three heartland states’ assembly elections.

The combined market capitalisation of all the listed firms of Adani Group hit the Rs 12 lakh crore-mark.

On the BSE, the scrip of Adani Green Energy surged 8 per cent to Rs 1,108.65 apiece, flagship firm Adani Enterprises rallied 6.61 per cent to Rs 2,518.55, and ACC bounced 6.35 per cent to Rs 2,021 per share.

Adani Energy Solutions advanced 6.16 per cent to Rs 908.65 per scrip and Ambuja Cements rose 6.06 per cent to Rs 468.90 per piece. While Adani Power went up by 5.59 per cent to Rs 464.80 apiece, Adani Ports and Special Economic Zone (APSEZ) gained 5.58 per cent to Rs 873.75 per piece.

Also, shares of Adani Total Gas jumped 4.38 per cent to Rs 731.95, NDTV climbed 4.13 per cent to Rs 228.10 and Adani Wilmar moved 2.50 per cent higher to Rs 348.95 per piece on the bourse. - PTI

Eicher Motors Ltd.’s shares were up 7.13% to Rs 4168.35, on the BSE. The company’s November motorcycle sales were up 13% year-on-year at 80,251 units. Motorcycle exports were up 2.2% year-on-year, at 5,114 units.

Tata Power Co. Ltd.’s shares were up by 2.19% to Rs 281.80, on the BSE as the company acquired the Bikaner-Neemrana transmission project in Rajasthan for Rs 1,544 crore, aiming to enhance renewable energy evacuation.

GAIL Ltd.’s shares went up by 4.41% to Rs 142.15 on the BSE after the company filed a claim over the non-supply of LNG cargoes by SEFE Marketing and Trading Singapore, amounting to $1.817 billion, in the London Court of International Arbitration

Rattanindia Enterprises Ltd. reported that Revolt Motors surpassed 100 dealerships nationwide extending electric mobility reach across multiple states in India. Shares up by 1.61% to Rs 77.09, on the BSE.

The NSE nifty was up by 1.79% or 362.80 points to 20,630.70 while the BSE Sensex was up by 1.74% or 1173.87 points to 68,652.26 at 2 pm

Jubilant FoodWorks Limited reported achieving the “No Antibiotics Ever” (NAE) milestone in Poultry Birds’ Health Management. The company addressed concerns about Antimicrobial Resistance (AMR) by restricting antibiotic use to therapeutic purposes under veterinary supervision. Shares were down by 0.24% to Rs 563.85, on the BSE.

Sadhana Nitro Chem Ltd. plans to establish a 15-20 MW Green Hydrogen Facility for self-consumption, utilizing a solar plant and wind farm on a 126-acre land plot. The company’s board approved a rights issue of up to Rs 49.95 crore, with shares offered at Rs 121 per share. Stocks trade at Rs 95.82, up by 7.95%, on the BSE.

Fairbridge Capital (Mauritius) Limited sold over 40 million equity shares of Thomas Cook (India) Limited in an OFS, valued at Rs 5.58 billion. Stocks trade at Rs 152.85, up by 4.19%, on the BSE.

The NSE nifty was up by 1.57 per cent or 318.45 points to 20,585.70 while the BSE Sensex was up by 1.52 per cent or 1025.45 points to 68,506.64 at 1 pm

Saboo Sodium Chloro Limited (SSCL) entered into a partnership with Dusit Thani to establish a resort in Jaipur, Rajasthan, comprising 350 villas or 700 guest rooms with wellness facilities. Shares up by 4.95% to Rs 18.87, on the BSE.

Fairbridge Capital (Mauritius) Limited sold over 40 million equity shares of Thomas Cook (India) Limited in an OFS, valued at Rs 5.58 billion. Stocks trade at Rs 152.85, up by 4.19%, on the BSE.

SOM Distilleries and Breweries Limited announced the approval from the Karnataka Excise Department for supplying premium beer brands- Hunter, Blackfort, and Woodpecker to Tamil Nadu. Shares up by 3.22% to Rs 294.55, on the BSE.

Kaka Industries Limited announces plans to install a 1300 KW Solar Power Plant on the roof of its new manufacturing plant in Village-Lasundra, Kathlal, Gujarat. The project is set to be fully commissioned by the end of January. Stocks trade at Rs 173.50, up by 2.66%, on the BSE.

Veefin Solutions Limited incorporated a new subsidiary, ‘Finfuze Software Pvt Ltd’ in Maharashtra, India. The acquisition cost for the shares amounts to Rs. 7,34,990, representing the acquisition of 73,499 shares at a face value of Rs 10 each. Stocks trade at Rs 295.40, up by 4.96%, on the BSE.

Bhartiya International (19.99%)

Emami Realty (19.97%)

Essar Shipping (18.73%)

Autoline Industries (14.23%)

Aarti Pharmalabs (13.42%)

AGS Transact Technologies Limited’s subsidiary, Securevalue India Ltd. deployed approximately 270 Dedicated Cash Vans (DCV) for Union Bank of India and Canara Bank, with a total order value of Rs 250 crore over 5 years. Stocks trade at Rs 97.55, up by 2.05%, on the BSE.

SJVN Ltd. commissioned both units of the 60 MW Naitwar Mori Hydro Power Station in Uttarakhand. The project added 265.5 million units of electricity annually to the company’s generation capacity, now totalling 2152 MW. Shares up by 2.65 per cent to Rs 87.23, on the BSE.

Time Technoplast Limited has signed an MOU for the sale of non-core assets in Southern India, including land, building, electrical installation, and fixed equipment, for Rs 26.5 crore. Shares up by 1.85% to Rs 182, on the BSE.

Top gainers on the NSE at 12 pm: Adani enterprises Ltd (6.53%), Adani ports and special economic zone Ltd (5.23), Bharat petroleum corporation Ltd (4.71%), Larsen & Toubro (4.20), Oil and natural gas corporation Ltd (4.61%)

Top losers on the NSE at 12 pm: Sun pharmaceuticals industries Ltd (0.51%), Britannia industries Ltd (0.50%), Maruti Suzuki India ltd (0.41%), HDFC (0.33%)

Columbia Petro Chem Private Limited and Aditya Halwasiya collectively, initiated an open offer to acquire up to 34,67,880 fully paid-up equity shares of Cupid Limited at ₹325 per equity share, representing 26% of the expanded voting share capital. Cupid Ltd.’s shares dip 0.39% to Rs 831.40, on the NSE.

3,867 stocks were traded on the BSE, of which, 2,506 advanced, while 1167 declined and 194 stocks remained unchanged. As many as 386 stocks hit a 52 week high and 26 stocks hit a 25 week low at 11.55 am

Greaves Electric Mobility Private Limited’s shares were up by 1.67% to Rs 134.30, the electric mobility division of the company entered the Nepalese market through a partnership with the Kedia Organisation, designating them as an authorized distributor for Ampere Electric two-wheelers in Nepal.

BLS International Services Ltd. secured a contract from the State Health Agency – Ayushman Bharat-Pradhanmantri Jan Arogya Yojana, Uttar Pradesh, for processing Ayushman Cards across 10 districts. Shares up by 6.90 per cent to Rs 281.15, on the BSE.

One 97 Communications Limited disclosed the allotment of 162,363 equity shares under the Employee Stock Option Scheme. The issued equity share capital has increased from Rs 634,660,354 to Rs 634,822,717 as a result of this allotment.

Coforge Limited reports the allotment of 19,179 equity shares under its ESOP scheme, with a face value of Rs 10 each. The corresponding Share Application Money received totals Rs 1,91,790. The company’s paid-up share capital now stands at Rs 61,62,83,540, comprising 6,16,28,354 equity shares. Shares were down by 0.37 per cent to Rs 5693.55, on the BSE.

63 Moons Technologies Limited announces initiatives in Cybersecurity (63 SATS), LegalTech (QiLegal), and Web 3.0 & Blockchain (3.0 Verse). The offerings include cybersecurity solutions, a platform for tokenization, and a cloud-based LegalTech ecosystem for modernising the legal framework. Shares up by 5% to Rs 539.80, on the BSE.

Wardwizard Foods and Beverages Limited hosted Lakshyavedh Business Jatra 2023 in Thane, for sustainability, and partnerships in the food industry. The event was co-sponsored by QuikShef, featuring the company’s product range. Shares down by 7.21% to Rs 31.52, on the BSE.

Bank Nifty opened today’s session with a gap-up at 45,671.50 versus Friday’s close of 44,814.20. The index is now at 45,740, up 2 per cent.

All the 12 stocks in the index are in the green, showing strong positive momentum. Punjab National Bank, up 4 per cent, and Bank of Baroda, up 3.2 per cent, are the top gainers.

Equity benchmark indices surged in the early trade on Monday, following the State Elections. BSE-Sensex and Nifty index zoomed over 1,100 points (to touch an all-time high) and 300 points, respectively.

Nifty is up by 1.29 per cent (261.70 points), at ₹20,529.60, while BSE-Sensex up by 1.32 per cent (891.15 points), at ₹68,372.45 at around 10:45 am.

BSE Sensex, up by 1.35% or 914.08 points to 68,396.46. NSE nifty up by 1.38 per cent or 282.45 points to 20,550.35 at 10.30 am

Nifty 50 opened this week with a considerable gap-up at 20,601.95 versus Friday’s close of 20,267.90. The index is now at 20,570, up nearly 1.5 per cent.

Substantiating the bullish inclination, the advance/decline ratio of Nifty 50 stands at 47/3. All mid- and small-cap indices too are in the green.

BCL Industries Limited and its subsidiary, Svaksha Distillery Limited, secured Ethanol supply orders from Oil Marketing Companies. The combined order value amounts to Rs 561 crore. Stocks trading at Rs 56.50, up by 4.47 per cent, on the BSE.

3,261 stocks were traded on the BSE, of which, 2,351 advanced, while 774 declined and 136 stocks remained unchanged. As many as 266 stocks hit a 52 week high and 17 stocks hit a 25 week low at 10 am

J. Kumar Infraprojects Limited secures a contract worth Rs 378.7 crore from Mumbai Metropolitan Region Development Authority (MMRDA) for the design and construction of a flyover. Shares up by 0.47% to Rs 429.30, on the BSE.

Sunrise Efficient Marketing Limited secures an order for graphic design and rendering services worth Rs 8.54 crore. Stocks trade at Rs 108.85, up by 4.61%, on the BSE.

Gold jumped more than 3% to above $2,100 early on Monday before paring much of those gains, hitting fresh all-time highs amid growing expectations that the US Federal Reserve will hold interest rates steady at this month’s meeting and could start cutting rates next year. Traders also doubled down on those bets despite Fed Chair Jerome Powell’s pushback against rate-cut expectations, saying it’s “premature” to anticipate policy easing. Markets now see a 60% chance that the US central bank could reduce its policy rate in March next year and are fully pricing in a cut in May. On the data front, the US ISM Manufacturing PMI came in below estimates in November, pointing to the 13th consecutive contraction in the factory activity and supporting the softer rate outlook. Additionally, the latest US PCE inflation reading indicated a slowdown in prices, while continuing jobless claims reached a two-year high.

APSEZ records 42% YoY growth in Nov ’23 cargo volumes. The stock trades at ₹862.95, up by 4.25% on the NSE at 9:30 am.

SEPC Limited announces the acceptance of a bid by the Drinking Water and Sanitation Department of the Government of Jharkhand for a contract valued at Rs 427.79 crore. Stock trades at Rs 19.90, up by 2.95% on the BSE.

Top gainers on the NSE at 9:30 am:

Adani Enterprises (7%); Adani Ports (5.22%); ICICI Bank (3.04%); SBI (2.98%); NTPC (2.73%)

Major losers:

Britannia (-0.46%); Maruti (-0.42%)

Inox Wind Limited completes an infusion of Rs 800 crore by its promoter, Inox Wind Energy Limited. Stocks trade at Rs 296.30, up by 2.94%, on the BSE.

Kalpataru Projects International Limited secured ₹2,263 crore in new orders for T&D, Water, and B&F businesses.. The company’s shares were up by 4.01% to Rs 695.70, on the BSE.

The market capitalization of Indian listed companies on NSE surpassed USD 4 Trillion (Rs 334.72 trillion) on December 1, 2023. On the same day, the Nifty 50 Index touched an all-time high of 

20,291.55. The Nifty 500 index also touched an all-time high of 18141.65 on the same day, indicating that equity market rally is not restricted to only the large capitalized stocks, the exchange said in a release on Sunday.

The journey of market capitalization of Indian listed companies from to USD 2 trillion (July 2017) to USD 3 trillion (May 2021) took about 46 months whereas the last USD 1 trillion i.e., from USD 3 trillion to USD 4 trillion took only about 30 months. While the USD 4 trillion market capitalization is an 

important milestone, data suggests that only 0.35% of the total private companies registered with Ministry of Corporate Affairs, Government of India are listed on the Exchanges indicating an enormous number of companies which can tap the equity market for their funding needs, the exchange said.

The resource mobilization by corporates including the Small and Medium Enterprise in the primary market has been encouraging and has provided an effective alternative mechanism in addition to the traditional methods of fund raising. In the current financial year as of October 2023, more than Rs. 

5,00,000 crores have been mobilized through primary markets across equity and corporate bonds. 

The market capitalization of listed companies increased at a compounded annual growth rate (CAGR) 

of 17.5% in the last 10 years. The Nifty 50 index delivered 14% CAGR in the last 10 years and 14.9% in the last 20 years. 

The top 3 companies by market capitalization - Reliance Industries Limited, Tata Consultancy Services Limited and HDFC Bank Limited remained the same when the market capitalization hit the USD 2 trillion, USD 3 trillion, and USD 4 trillion mark.

Whie India ranks amongst the top 5 nations based on market capitalization, the market capitalization of listed companies on NSE to India’s GDP stood at 1.18 or 118% which is lower as compared to developed markets such as United States of America or Japan. 

The share turnover velocity at NSE for calendar year 2023 as on date stood at 47%. The share turnover velocity is way below some of the global markets such as United States of America, Japan, South Korea, China and Brazil. A very low percentage of companies listed on the exchange and comparative lower share turnover velocity, indicates an immense growth potential for deepening of 

Indian market in the years to come. 

The daily average turnover has seen a year-on-year growth of 27% in the equity segment and 5% in equity derivatives in this financial year as compared to the previous financial year. In the last 10 

years, the equity segment’s daily average turnover has increased by over 6 times and that of equity derivatives’ daily average turnover has increased by over 5 times.

Genesys Middle East Ltd., a subsidiary of Genesys International Corporation, secures a contract worth Rs 26 crore, for the 3D Digital Twin mapping of the Holy City of Mecca by the Kingdom of Saudi Arabia. Stock trades at ₹419 on the NSE, up by 1.48 per cent at 9:46 am

Persistent Systems Ltd. bags the “Most Promising Company” award at CNBC-TV18’s India Business Leader Awards

Repeated failure to breach 83.4 has rendered the trend weak calling for dips to 83.19 or a consolidation inside 83.19 - 83.02 again. While we see 83.19-83.26 as a turnaround region, we will wait for breach of 83.4-83.02 band to be broken to play directional moves. 

Nifty weekly contract has highest open interest at 21000 for Calls and 20000 for Puts while monthly contracts have highest open interest at 21000 for Calls and 19000 for Puts. Highest new OI addition was seen at 20600 for Calls and 20200 for Puts in weekly and at 19800 for Calls and 20200 for Puts in monthly contracts. FIIs increased their future index long position holdings by 9.70%, decreased future index shorts by 2.22% and increased in index options by 50.83% in Call longs, 37.63% in Call short, 99.20% in Put longs and 75.99% in Put shorts.

Nifty weekly RSI is heading into overbought levels that has historically forced the index to turn lower. However, momentum is still in favour with ADX strong and the directional moving indicators not yet extreme. This allows window for Nifty to stretch atleast till 20500-600 before the calls for a turn lower becomes stronger. 20190/070 or 19800 could serve as downside markers until then. Meanwhile VIX is showing signs of bottoming out after languishing not far from record low for a substantial period of time, which had not let the traditional correlation between Nifty and VIX into play. We are now bracing for a 20% rise in volatility here on, from 12.3 last recorded on Friday, thus elevating to a level where the correlation will become more meaningful.

L&T Finance Holdings Limited confirms the completion of the amalgamation scheme involving its subsidiaries L&T Finance Limited, L&T Infra Credit Limited, and L&T Mutual Fund Trustee Limited.

India’s benchmark indices, Sensex and Nifty, opened at record highs on Monday, propelled by robust domestic macroeconomic data, increased expectations of a U.S. rate cut in March, and the recent win of the ruling Bharatiya Janata Party (BJP) in crucial state elections. 

The 30-share BSE Sensex surged 872.86 points to reach 68,354.05 in early trading, while the NSE Nifty climbed 277 points to hit 20,544.90.

Among the Nifty gainers were Adani Enterprises, Adani Ports, L&T, SBI, and Bharti Airtel, while Britannia, Nestle, and Apollo Hospitals faced declines.

Positive sentiments were echoed in Asian markets.Analysts cited the state election results on Dec. 3 as a positive driver for the markets.

Indian benchmarks had a strong showing in November 2023, supported by a rebound in foreign portfolio investor (FPI) inflows following a two-month selling streak.

Deepak Nitrite Limited has incorporated a wholly owned subsidiary, DEEPAK PMC LIMITED (DPMCL), with an authorised capital of ₹5 crore

Crude oil futures traded below $79 a barrel on Monday morning despite the geopolitical tensions in the Middle East and the attack on commercial vessels in the Red Sea region. Uncertainty over the voluntary production output cuts by some members of OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+, made an impact on crude oil prices on Monday morning. At 9.10 am on Monday, February Brent oil futures were at $78.41, down by 0.60 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $73.69, down by 0.51 per cent. December crude oil futures were trading at ₹6166 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6281, down by 1.83 per cent; and January futures were trading at ₹6205 as against the previous close of ₹6303, down by 1.55 per cent.

With the results of state elections giving a big victory to BJP in three states and some in-roads in Telangana as well, we expect markets to open with a gap up of atleast 200-250 points on Monday. We further expect markets to cement gains and won’t we surprised to see markets closer to the 22,000 levels before the general elections in 2024. The image of the BJP as a pro-reformist and the performance of the economy on various fronts, especially during the COVID period and gloomy global economic situation, have provided market participants confidence that a dual-aided right-wing government is beneficial in the longer term. As we move closer to the 2024 general elections, we believe that the decisive win by the BJP in key states has sent a strong message to investors betting on India’s rising growth potential and position the country on a stronger footing as compared to its peers.

Kotak Securities – Market Morning Inputs by Shrikant Chouhan – Head Equity Research

In the past week, both benchmark indices experienced a promising uptrend rally. The Nifty ended 134 points higher while the Sensex gained 492 points. All sectoral indices were traded positively, with the Oil and Gas index outperforming and rallying over 4%. During the week, the Nifty successfully cleared the short-term resistance of 20000/66900. The market has made a solid comeback from lower levels, that too in an environment of uncertainties, which will help Nifty move towards 21500 in the medium to long term. We cannot expect these levels at once but it should be the target and a strategy to buy on dips for positional traders and investors.

After the breakout, it intensified the positive momentum, forming a long bullish candle on weekly charts and holding a higher high and higher low series formation on intraday charts, which is a largely positive sign. For trend-following traders, the support zone would be between 20100-20000/67000- 66700, while the resistance zone would be between 20500-20650/68100-68500. Short-term traders should buy on dips and sell on rallies. As for the Bank Nifty, 44200 could be the support level, above which it could rally till 45500-45700.

The capital goods sector has started benefitting from the government’s initiatives towards capex spending, revival in select pockets of private sector, increased spending in GCC region and favorable raw material prices. Government has already set the ball rolling across key areas such as transmission, clean energy, railways, Make in India, PLI, defense indigenization, et al. until FY30, which provides a strong addressable market for capital goods companies. Energy transition-related investments too are driving capex across geographies. Private sector capex has selectively started growing over last two years and will get further boost from PLI led capex, expected investments in energy transition initiatives as well as growth seen in data centres, EV etc. Thus, we believe that the entire capex is falling in place for the next decade that will augur well for capital goods companies. 

We reinitiate coverage on the sector with a positive long-term bias. However, current valuations for a few of these names have limited risk-reward ratio. We thus recommend a selective stance on the sector and recommend BUY on L&T, ABB, Siemens, Cummins, Kalpataru Power International, Kirloskar Oil Engine, Triveni Turbine; NEUTRAL stance on BEL, Thermax and KEC and SELL on Hitachi Energy.

Gift Nifty is up 300 points or 1.5% after emphatic BJP victories in three out of the four states assembly elections that have strengthened market expectations of a decisive popular mandate for the ruling party in the 2024 Lok Sabha polls. These results, branded as a semi-final to the forthcoming May’24 Loksabha elections, will provide comfort to the markets as far as political stability is concerned.

Dovish commentary by the US Federal Reserve, US 10-Year bond fell to 3-month low to below 3.20%, 11-month high GST collection and November domestic PMI activity an uptick in November, after falling to an eight-month low, persistent FIIs buying interest and fall in oil price open will be positive for the market sentiment. 

The US market surged up to 1% and S&P 500 closed at its highest level of the year on Friday as comments from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. Yields fell after Powell’s comments, with the 10-year Treasury note sinking to 3-month low to 4.19%. Moreover, better than expected China November PMI data will be positive for the market sentiment. The US S&P 500 surged 8.9% last month — its second-best November since 1980. US S&P 500 closed at its highest level of the year and European stocks close to 4-month high as investors grew more confident there would be interest rate cuts next year after the dovish commentary by the US Federal reserve. Investors would also keep an eye on the RBI’s interest rate decision on Friday along with PMI data of US, India and UK. US non-farm payroll data would be key events to be monitor next week

Oil –Brent crude declined 3% to $78/bbl after the US announced further supply oil production. OPEC+ agreed to cut oil by 1 million barrels, which is lower than the market expectation.

Gold – Spot gold moved closer again to it’s all-time high after US Federal Reserve chair Jerome Powell said the central bank’s policy rate is “well into restrictive territory.” Traders viewed Powell’s latest remarks as dovish, with Treasury yields and the dollar slipping further. Gold gained 2% to $2072/ounce

NIFTY-50 OUTLOOK

NIFTY-50 scaled and closed above the previous all time high with strong up move across sectors in index pivotal; the potential targets could be 20,600 levels.

It has left multiple gaps over the past few days and the trend reversal levels had moved higher to 19,800 levels with sharp up move.

RSI has moved to the higher band of 75 levels and would continue to move higher trending above the average lines. 

Highest call OI has moved to 20,400 strike while on the downside the highest put OI is at 20,000 for the weekly expiry.

BANK NIFTY OUTLOOK

BANK NIFTY has closed above the 100 day averages and we continue to believe it will outperform from current levels to test its all time highs.

The support has moved higher to 44,400 levels followed by 43,900 which also coincide with the band of averages.

RSI and other key technical indicators are in positive trend and would continue to witness up move near to the higher range.

Bank Nifty 45,300 CE has the highest OI while on the downside it has the strike moved higher to 44,500 for the put OI.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. Market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better-than-expected. The market has already partly discounted a BJP victory with a 500 point rally during the last 4 sessions. But the mood is so exuberant that the rally will continue. The global backdrop also is favourable with the US 10-year bond yield declining to 4.23%. An across the board rally in stocks is in the offing.

A restraining factor will be the valuations which are high and will get stretched further with the rally gaining momentum. In the near-term the market will ignore fundamentals and move up but soon high valuations will trigger some selling.”

“The USD/INR 27th December futures contract experienced a decline from its recent highs. Based on the weekly technical chart analysis, the currency pair is currently trading above its moving average trend-line support level of 83.25, with the RSI holding above the 50 levels. However, the technical setup reveals negative divergence in the MACD, indicating a potential weakening of the bullish momentum. The pair is encountering significant resistance at higher levels. According to the weekly technical chart, the pair has support in the range of 83.22-83.05, while resistance is positioned at 83.55-83.70. The currency pair has been consolidating in a narrow range for an extended period and is anticipated to continue trading within the 82.80-83.70 range this week. To make informed trading decisions, it is advisable to closely monitor the levels of 83.25-83.50. A breakout on either side of this range could provide further guidance on the future direction of the pair.” -- Rahul Kalantri, VP Commodities, Mehta Equities Ltd 

“Crude oil experienced significant volatility and continued its decline. International markets witnessed a sixth consecutive week of falling crude oil prices, with WTI prices dropping below $75 a barrel and Brent prices slipping below $80 a barrel. Despite OPEC+ announcing a 2.2 million barrel per day output cut in the first quarter of 2024, market confidence in compliance from OPEC+ nations remained low, contributing to the downward trend in crude oil prices. Also, negative U.S. economic data and a rise in U.S. crude oil inventories further pressured prices. However, a mitigating factor was the alleviation of inflation in the Euro-zone, coupled with the strength of the euro and weakness in the dollar index, providing some support for oil prices at lower levels. Anticipating ongoing volatility, we foresee fluctuations in crude oil prices this week driven by movements in the dollar index and developments in OPEC+ meetings. The support for crude oil is expected at $73.05–72.20, with resistance at $74.50-75.20 in today’s session. In terms of INR, crude oil has support at Rs 6,140-6,050 and resistance at Rs 6,310-6,380.” -- Rahul Kalantri, VP Commodities, Mehta Equities Ltd 

“Gold prices surged to an unprecedented peak above the psychologically significant $2,100 mark during the early Asian session on Monday. The surge is attributed to speculation that the Federal Reserve (Fed) has reached the pinnacle of its rate hike cycle, thereby bolstering demand for the precious metal. Simultaneously, silver prices have reached 5-month highs in the international markets and are poised to achieve a lifetime high in the domestic markets. Despite hawkish comments from the Fed Chairman, the dollar index retreated from its 14-week highs, providing additional support to precious metals. Last week’s global economic data presented a mixed picture, with the euro and pound sterling gaining ground against the U.S. dollar, further reinforcing the upward trajectory of gold and silver prices. Anticipating a day of volatility in today’s session, we observe that gold finds support at $2072-2058, with resistance at $2104-2120. For silver, the support is at $25.32-25.20, while resistance stands at $25.70-25.84. In INR, gold has a support range of Rs63,020-62,850, coupled with resistance at Rs63,780 and Rs63,950. Meanwhile, silver enjoys support at Rs77,550-77,180, and faces resistance at Rs78,670 and Rs79,130.” -- Rahul Kalantri, VP Commodities, Mehta Equities Ltd

On the global front, the benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism that the Federal Reserve was done raising US interest rates and could begin to cut them next year as inflation cools. This came even as US Fed Chair Jerome Powell said it was premature to conclude with confidence that monetary policy was “sufficiently restrictive.” On the global front, Oil prices fell in Asian trade on Monday as the prospect of less tight markets in 2024 largely offset positive signals from a less hawkish Federal Reserve and potential supply disruptions in the Middle East. Additionally, Gold prices surged to a record high in Asian trade on Monday, extending a raft of recent gains as markets bet that the Federal Reserve could begin cutting interest rates as soon as March 2024, even as central bank officials remained cautious. On the domestic front, Sensex and Nifty are looking to build on last week’s gains, spurred by the Bhartiya Janta Party’s (BJP) resounding win in state elections. That apart, the Reserve Bank of India’s monetary policy meeting on Friday remains another trigger for the near-term. The central bank is expected to keep rates steady. The benchmark index extended its bull run for 4th straight consecutive higher high trading session as the price action scaled to new life highs following the pivotal breakout. The breakout came with a gap-up opening which further indicates strength in the trend as the market status gets upgraded to a confirmed uptrend. -- Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.

“Chair Powell may have dampened expectations for rate cuts, but this Monday morning sees Gift Nifty jumping anyway. Investors globally eagerly await December for the famed Santa Claus Rally, and this morning, the Christmas Cake is baked for solid gains. Key catalysts include a resurgent optimism from FIIs, with Rs. 10,593 crores bought in the past week, a 15.1% YoY rise in GST collections, and BJP’s state election results adding fuel to bullish sentiments. Bulls are thrilled with considerable drops in US inflation, a 5.2% Q3 US GDP surpassing the 4.9% estimate, and optimism that the Federal Reserve may cut borrowing costs in Q1 2024. With positive global cues, the Dow gained 2.42% in the past week, setting the stage for Nifty to start the week with a bullish bang, eyeing inter-month targets at the 21,000 mark. Preferred trades on Nifty and Bank Nifty include buying at CMP with specific targets. Also, the chart of the day is bullish on BEL, MANAPPURAM FINANCE, PI INDUSTRIES, TATA CONSUMER, NTPC, and TITAN on any intraday weakness with an inter-week perspective. The top stock to buy now is PI INDUSTRIES at CMP 3,817, with a stop at 3,655, targets at 3,907/4,050, and aggressive targets at 4,500, driven by a Momentum Play strategy.” - Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

As per the state election results and trends available so far, the BJP has comfortably won in three out of four states that went under the polls, beating the exit polls. The BJP has retained Madhya Pradesh (MP) with a strong two-thirds majority, and regained Rajasthan and Chhattisgarh from the Congress with a comfortable majority. Vote share difference between the BJP and the Congress in MP, Rajasthan and Chhattisgarh stands at 8.2%, 2.2% and 4.2%, respectively (details in Exhibit 1-8). In Telangana, the Congress has defeated the BRS by a thin majority. Thus, the verdict is clear for all four states. These four states together account for 75 Loksabha seats (out of 544).

These results, branded as a semi-final to the forthcoming May’24 Loksabha elections, will provide comfort to the markets as far as political stability is concerned. The incumbent BJP’s performance in avoiding anti-incumbency and retaining a big state like MP (5th consecutive term) while managing to regain Rajasthan and Chhattisgarh should provide them with a good tailwind for the 2024 general elections.

- While state elections have shown no correlation with Loksabha elections in the past (BJP had lost these three states in Dec’18 but won the 2019 Loksabha elections with a better majority than 2014), it nonetheless removes a key overhang of political uncertainty for the markets for the next five months.

- Equity markets were justifiably anxious about the outcome of state polls and what it portends for the 2024 general elections. With the outcome overwhelmingly in favor of the incumbent BJP, the confidence of the market in the current dispensation and political continuity post 2024 Loksabha elections will get a boost. This augurs well for macro and policy momentum for India, which, at the moment, is seeing the highest growth among major economies (both GDP as well as corporate earnings).

- We expect market sentiment to strengthen further and the prospect of a pre-election rally is quite strong now, in our view. We also note that Nifty has given positive returns (9%-36%) six months into the announcement of general election results (Nov to May) on five previous such occasions (1999-2019) (see Exhibit 9).

Price band revised from 10% to 5%: Eimco Elecon. 

Move Out of short-term ASM framework: Patel Engineering.

Choice International: Promoter group Patodia Properties bought 1.1 lakh shares on Nov. 30. 

Deccan Gold Mines: Promoter Rama Mines Mauritius sold 1 lakh shares on Nov. 30. 

Goldiam International: Promoter Rashesh Manhar Bhansali sold 5 lakh shares on Nov. 29. 

Usha Martin: Promoter group Usha Martin Ventures sold 1.5 lakh shares on Nov. 30. 

Thirumalai Chemical: Promoter group Deepa Ajay sold 18,000 shares on Nov. 30. 

Safari Industries: Promoter group Safari Commercial LLP sold 14,600 shares between Nov. 29 and 30.

Tanfac Industries: Himalaya Finance and Investment bought 1.8 lakh shares (1.8%) at Rs 2,210 apiece. Anshul Speciality Molecules sold 2.47 lakh shares (2.47%) at Rs 2,210 apiece.

Hindustan Unilever: The company decided to split its beauty and personal care business into two separate divisions in an effort to increase focus on these high-growth segments amid rising competition from new-age brands.

GAIL: The company filed a claim over the non-supply of LNG cargoes by SEFE Marketing and Trading Singapore worth $1.817 billion in the London Court of International Arbitration.

Adani Group stocks: The conglomerate will spend Rs 7 lakh crore in capital expenditure over the next 10 years, its CFO said. Six infra businesses—from power and ports to airports—will be tapping the bond market to raise funds.

Tata Power: The company acquired the Bikaner-Neemrana transmission project in Rajasthan for Rs 1,544 crore to boost renewable energy evacuation

Jio and TM Forum inaugurate first Innovation Hub in Mumbai

Granules: says that its arm Granules Pharmaceuticals, Inc. has received US FDA’s Abbreviated New Drug Application (ANDA) approval for Sildenafil for Oral Suspension

Siemens: German parent Siemens AG will acquire an 18% stake in its India unit at Rs 2,952.86 apiece, which represents a discount of 21% to its closing price on Friday.

Brigade Enterprise: The company launched the Brigade Sanctuary commercial residential project in Bangalore, which has a gross revenue potential of Rs 2,000 crore.

Lupin: The pharma major received USFDA approval for the launch of Turqoz Tablets USP, 0.3 mg/0.03 mg.

Maruti Suzuki: The company’s November volume output was down 3.29% year-on-year, at 1.48 lakh units.

Eicher Motors: The company’s November motorcycle sales were up 13% year-on-year at 80,251 units. Motorcycle exports were up 2.2% year-on-year, at 5,114 units.

Hero MotoCorp: The company’s November sales rose 25.6% year-on-year to 4.91 lakh units. Domestic sales grew 25.4% to 4.76 lakh units.

Alkem Laboratories: A U.S. FDA inspection at the company’s API manufacturing facility in Mandva ends with three observations.

Bajaj Healthcare: The company’s CFO, Rupesh Nikam, resigned from the position on Dec 1.

Syngene: The company completed the acquisition of a biologics manufacturing facility from Stelis Biopharma.

Strides Pharma: The company launched Icosapent Ethyl Acid Soft Gel Capsules in partnership with Amneal.

Shree Digvijay Cement: The CEO and MD, KK Rajeev Nambiar, resigned from the position w.e.f. Dec. 15, 2023. The company appointed Ramanujan Krishnakumar as an additional director, chief executive officer and managing director w.e.f. Dec. 16, 2023.

Radiant Cash Management Services: The company completed its investment in Aceware Fintech Services and now holds a 56.93% stake in the same.

Harsha Engineers International: The company entered into an agreement with Goldi Solar Private to jointly bid for the tender ACE issued by Surat Municipal Corp. for the EPC of a 10 MW ground-mounted grid-connected solar photovoltaic power plant with land on lease.

Omaxe: The company incorporated FBD Real Grow as a wholly-owned subsidiary by acquiring the remaining 75% stake.

Kamat Hotel: The company opened a new orchid hotel in Jamnagar, Gujarat.

Surya Roshni: The company’s CEO of steel operations and key managerial personnel, Tarun Baldua, resigned from the position on Nov. 30.

Updater Services: The company approved the appointment of Radha Ramanujan as designated chief financial officer and fey managerial personnel with effect from the closure of business hours on Dec. 30, 2023. It approved and appointed CR Saravanan as Chief Operating Officer of the company with effect from Jan. 1, 2024.

With the results of state elections giving a big victory to BJP in three states and some in-roads in Telangana as well, we expect markets to open with a gap up of atleast 200-250 points on Monday. We further expect markets to cement gains and won’t we surprised to see markets closer to the 22,000 levels before the general elections in 2024. The image of the BJP as a pro-reformist and the performance of the economy on various fronts, especially during the COVID period and gloomy global economic situation, have provided market participants confidence that a dual-aided right-wing government is beneficial in the longer term. As we move closer to the 2024 general elections, we believe that the decisive win by the BJP in key states has sent a strong message to investors betting on India’s rising growth potential and position the country on a stronger footing as compared to its peers. -- Manish Chowdhury, Head of Research, StoxBox.

On the global front, the benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism that the Federal Reserve was done raising US interest rates and could begin to cut them next year as inflation cools. This came even as US Fed Chair Jerome Powell said it was premature to conclude with confidence that monetary policy was “sufficiently restrictive.” On the global front, Oil prices fell in Asian trade on Monday as the prospect of less tight markets in 2024 largely offset positive signals from a less hawkish Federal Reserve and potential supply disruptions in the Middle East. Additionally, Gold prices surged to a record high in Asian trade on Monday, extending a raft of recent gains as markets bet that the Federal Reserve could begin cutting interest rates as soon as March 2024, even as central bank officials remained cautious. On the domestic front, Sensex and Nifty are looking to build on last week’s gains, spurred by the Bhartiya Janta Party’s (BJP) resounding win in state elections. That apart, the Reserve Bank of India’s monetary policy meeting on Friday remains another trigger for the near-term. The central bank is expected to keep rates steady. 

The benchmark index extended its bull run for 4th straight consecutive higher high trading session as the price action scaled to new life highs following the pivotal breakout. The breakout came with a gap-up opening which further indicates strength in the trend as the market status gets upgraded to a confirmed uptrend.

Supports: 20220-20190-20160

Resistances: 20475-20600-20650

Investors with a minimum time frame of one year can buy the shares of Granules India (₹392.70). The stock surged over 20 per cent last month. This has taken the share price well above the key resistance level of ₹360. 

Thanks to a favourable demand-supply mismatch and rising room rates, the Indian hospitality sector has been in the limelight for some time now. It has remained resilient even during recent corrections as business flourished due to the G-20 New Delhi summit and the Cricket World Cup.

Shares of the luxury hotel chain operator EIH Ltd., flagship of the Oberoi Group, have outperformed the markets (Sensex), gaining 32 per cent in the last 12 months and showing a 38 per cent CAGR in the last three-year period. 

The dollar index and the US Treasury yields have come down sharply over the last few weeks. The dollar index has declined from around 107 to 103.27 now. The US 10Yr Treasury yield has fallen sharply from around 5 per cent to 4.19 per cent now. Easing inflation numbers, increasing hopes that the interest rates in the US have reached the peak, speculation in the market about the US Federal Reserve to begin the interest rate cut cycle are all weighing on the green back and the treasury yields.

Last week, bellwether indices Nifty and Sensex gained nearly 2.3 per cent each driven by optimism around the strong GDP growth of India and inflows of foreign capital. Nearly all sectoral indices ended in green during the week with the highest gains posted by BSE Oil & Gas (5.8 per cent), BSE Power (5.7 per cent) and BSE PSU (4.7 per cent).

In this column, we spotlight the three best-performing stocks every week. Last week, the three stocks that gained the most in the BSE 500 linked to some fundamental news were Adani Total Gas (31 per cent), Aster DM Healthcare (19 per cent), and PFC (16 per cent).

The precious metals appreciated for a third week in a row, showing strong momentum. Gold and silver appreciated 3.4 per cent and 4.5 per cent as they closed the week at $2,070.9 and $25.4 per ounce respectively.

Likewise, on the MCX, gold futures was up 2.8 per cent and silver futures gained 3.4 per cent by closing the week at ₹63,357 (per 10 gram) and ₹78,087 (per kg) respectively.

Crude oil prices declined last week. Brent crude oil futures on the Intercontinental Exchange (ICE) was down 2.1 per cent as it closed at $78.9 per barrel. Crude oil futures on the MCX lost 1 per cent and it wrapped up last week at ₹6,281 a barrel.

Stocks of Bajaj Finance, Bajaj Auto, TVS Motor, Britannia Industries, Bharat Forge, SRF, Tata Group and Aditya Birla Group companies have been investor darlings in recent years. But are you better off investing in these companies or holding companies (Holdcos) that derive their value from their stakes in these companies? Here is our analysis.

17:00 EURO ECB President Lagarde Speaks

20:30 U.S. Factory Orders m/m (Expected: -2.7% versus Previous: 2.8%)

DELTACORP

- We like BFSI, Industrials, Real Estate, Auto and Consumer Discretionary. 

Preferred Ideas

Large-Caps: SBI, Axis Bank, M&M, HERO HONDA, L&T, ULTRATECH, TITAN, Indian Hotels.

Mid-Caps: Godrej Prop, Indian Hotels, LemonTree, Sunteck Realty, PNB Housing, Angel One, Global Health.

The Indian QSR industry is an attractive investment opportunity as it promises scope to multiply meaningfully, benefiting from category underpenetration, favorable demographics allowing for higher eat-out/order-in frequencies and aggregators aiding category expansion, in our view. We forecast healthy low to mid-teens revenue CAGR and 15-20% EBITDA CAGR over FY23-26E for the listed QSR universe. We see higher intensity for store roll-outs, scaling up omni-channel & digital capabilities, expanding value offerings and reshaping cost structures. Currently the sector is navigating cyclical demand headwinds, resulting in underperformance which should reverse, in our view, as the headwinds fade and drive mean reversion in productivity and margin metrics. Execution excellence and prudent unit economics are crucial for sustaining healthy FCF and EPS growth. Growth longevity will support premium valuations as seen for most consumer discretionary companies in India. Our preference order: WESTLIFE (best value format to tap into multiple day parts) > DEVYANI (most diversified QSR play) > SAPPHIRE (valuation comfort) > JUBI.

We initiate on WESTLIFE/DEVYANI/SAPPHIRE at OW and Mar-25 PT of Rs1,050/Rs215/Rs1,700.

ACTUAL: 46.7 

ESTIMATES: 47.9 

PREVIOUS: 46.7 

(DATA TRAILED WITH ESTIMATES)

Dixon Technolog: Sunil Vachani, Chairman

Construction Is Underway For One More Plant In Noida: Dixon Tech

https://www.youtube.com/watch?v=7UD1BbEO3p8

Dixon Technolog: Atul Lall, MD

Dixon Tech On Exports Opportunity

https://www.youtube.com/watch?v=yIfiW1C5004

Flair Writing: Sumit Rathod, Whole-Time Director

Adding New Capacity In FY24 & FY25 With Revenue Recognition Beginning From FY26: Flair Writing

https://www.youtube.com/watch?v=7-nVjE6e4Uo

Granules India: Priyanka Chigurupati, ED

Granules India: Q2 Stability, Strategic Expansion And Unexpected Demand Boost

https://www.youtube.com/watch?v=QN_2c5-gTBU

IIFL Finance: Kapish Jain, CFO

Plan To Address High-Risk Weights For Secured Lending To NBFCs In A Representation To RBI: IIFL Fin

https://www.youtube.com/watch?v=DvHn5i-Wdos

NIIT: Vijay Thadani, CEO

Acquisition Strategy Is To Either Add New Capability, A New Segment Or A New Geography: NIIT

https://www.youtube.com/watch?v=PkGEZ0Y9H9s

Fedbank: Anil Kothuri, MD CEO

Weak Listing | Net Interest Margin will improve by 30-35 bps, says Anil Kothuri, MD & CEO of Fedbank Financial Services

https://twitter.com/cnbctv18news/status/1730103437344526832?s=48&t=v93OK0uc4_THpPO_aS8n7w

GIC: Ramaswamy Narayana, CMD

Credit Rating Upgrade Helping Co Getting Strong International Biz: GIC Re

https://www.youtube.com/watch?v=D8Hx3CBedcQ

Man Infra: Parag K Shah, Chairman MD

Unlocking Growth: Man Infraconstruction Raises ?550 Crs, Eyes Real Estate Expansion | Mr.Parag Shah

https://www.youtube.com/watch?v=8_BrQ5L1NIE

Selan Explore: Suniti Bhat, Managing Director

Selan Exploration Merger Update, ?250 Cr IPO Fundraise & Future Growth Plans | Suniti Bhat

https://www.youtube.com/watch?v=nbzn4ZTLUtk

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

Replays available at www.researchbytes.com

Sensex, Nifty 50 and the Nifty Bank indices witnessed a strong rise last week. The benchmark indices rose breaking above their intermediate resistances and have closed on a strong note. All the three indices were up over 2 per cent last week.

The combined market valuation of nine of the top-10 most valued firms climbed ₹1,30,391.96 crore last week, with Bharti Airtel and Tata Consultancy Services (TCS) emerging as the biggest gainers, amid an overall optimistic trend in equities.

Last week, the BSE benchmark jumped 1,511.15 points or 2.29 per cent.

Barring Reliance Industries, nine other companies including HDFC Bank, ICICI Bank, Infosys and Hindustan Unilever witnessed addition in their market valuation.

The Nifty climbed to a record high of 20,291 fuel4led by robust GDP data and positive global indicators on Friday. Foreign investors shifted from selling to buying in November, purchasing shares worth over $1 billion after significant sell-offs in the preceding months. Market experts anticipate that the State election outcomes could sway foreign investor flows, with potential rallies if results favour the ruling party.

The recent State election results in India, with three out of five states favouring the ruling party, signal potential gains in Indian equities. The political stability expected from this outcome is seen as beneficial for reforms and investor confidence. Analysts anticipate a continued market upturn, foreseeing positive surprises in results, potentially driving Nifty levels to 20,500-20,800. This stability could also stimulate capex, housing upcycle, and higher GDP growth, with global trends and foreign investments aiding the market’s upward trajectory.

At the beginning of the week, Asian shares showed strength amidst a flurry of upcoming economic data. These figures are expected to challenge market expectations for early and aggressive rate cuts by major central banks in the coming year. 

The MSCI’s broadest index of Asia-Pacific shares, excluding Japan, maintained a 0.56% increase. South Korea’s KOSPI rose by 0.7%, adding 17.58 points to reach 2,522.59, while Australia’s S&P ASX200 Index surged by 1.06%, or 76.70 points, reaching 7,149.90 in trading. Conversely, Japan’s Nikkei experienced a dip of 0.55%, or 184.17 points, landing at 33,247.14, partly due to the yen’s recent strengthening.

There remains a lingering risk of the Israel-Hamas conflict escalating into a wider confrontation, highlighted by the targeting of three commercial vessels in the southern Red Sea.