Share Market Highlights: Sensex, Nifty rise amid buying in blue-chip stocks

”This correction in the gold rate is largely influenced by the rally in the US Dollar Index, taking the prices downwards. Along with this, the chances of Fed going for another rate cut has dimmed, which has given further support to the US Dollar Index, thereby negatively affecting gold prices.

Domestically, the correction is here for the better as India enters the wedding season, one of the two biggest gold-buying seasons in the country. Given the sentimental value attached to the yellow metal, price factor plays a minimal role in influencing the buyer’s decision, keeping the overall demand robust.

Going ahead, gold prices are likely to stay volatile for the short term and will be majorly guided by the movement in USD and Fed’s take on further rate cuts in the upcoming meetings.”

The rupee depreciated 13 paise to close at an all-time low of 84.73 (provisional) against the US dollar on Monday, on disappointing macroeconomic data and broad strength of the American currency in the overseas markets.

Forex traders said Asian currencies were down after Trump Rhetoric on BRICs currency, as the move may further strengthen the greenback.

Top gainers on the NSE 

Ultratech Cement (3.82%), Apollo Hospitals (3.45%), Grasim (3.06%), Shriram Finance (2.56%), JSW Steel (2.53%) 

Top losers: 

HDFC Life (-2.67%), NTPC (-1.46%), Cipla (-1.36%), SBI Life (-1.06%), HUL (-0.69%)

Shares of Maruti Suzuki (India), Mahindra & Mahindra (M&M) and TVS Motor Company gained on Monday as the automakers disclosed their monthly sales data for November 2024.

Domestic brokerage Motilal Oswal said that the dispatches declined sharply month-on-month (m-o-m) in the month under-review across all segments in line with its expectations, following the festivities in October. Motilal’s top picks include Maruti Suzuki, M&M and Hyundai.

ICRA ESG Ratings’ report on science-based target initiative or SBTi commitments by Indian companies reveals a significant shift towards renewable energy in the power sector, particularly among companies with net-zero commitments, resulting in reduced emissions. Out of 127 companies with net-zero commitment from India, ~7% belong to high emissions sectors like construction materials and mining. The rest hail from sectors like textiles, software and services, typically considered to be having low to medium level of carbon footprint.

Shares surge 3.28% on the NSE to ₹1,661.10

Top gainers on the NSE as at 3 pm:

Ultratech Cement (4.30%), Apollo Hospitals (3.43%), Grasim (3.19%), Shriram Finance (2.45%), Adani Ports (2.31%)

Top losers:

HDFC Life (-2.59%), Cipla (-1.66%), NTPC (-1.48%), SBI Life (-1.17%), Kotak Mahindra (-0.79%)

Stocks advanced on BSE at 3 pm on December 2, 2024, were 2,455 against 1,573 stocks that declined, and 172 remained unchanged. Total stocks traded were 4,200. The number of stocks that recorded a 52-week high was 239, and those that hit a 52-week low was 26. A total of 497 stocks traded in the upper circuit, and 250 in the lower circuit.

Tech Mahindra board has approved plan of Merger of TM Born Group CR Sociedad de Responsabilidad Limitada, Costa Rica with Allyis Technology Solutions Sociedad de Responsabilidad Limitada, Costa Rica, wholly-owned subsidiaries of Allyis Inc. USA, and wholly-owned step-down subsidiaries of the Company.

Stock trades at ₹1,743.25 on the NSE, up 1.81%.

1. MRP Agro: FUND RAISE

BoD has approved the issuance of 11.7L equity shares at INR 120/each, aggregating to INR 14.0 Cr. Subscribers include Sandeep Singh, Rakesh Laroia, and Amit R Agarwal etc.

2. KPI Green Energy: ORDER

Company has received a Letter of Award (LOA) from Coal India Limited (CIL) for the development of a 300 MWAC grid-connected ground-mounted solar PV plant at GIPCL’s Solar Park in Khavda, Gujarat. The project also includes operation and maintenance (O&M) services for a period of 5 years. This order marks a significant milestone for the company, being the first major order from a central government entity. It aligns closely with the company’s strategic vision and ambitious goal of achieving 10 GW of capacity by 2030.

3. Kay Cee energy & Infra: ORDER

Company has been awarded a work order/contract worth INR 12.8 Cr by Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL) for Shifting / Undergrounding of 132kV Basni - NPH line passing through the campus of AIIMS, Jodhpur (on the request of AIIMS, Jodhpur) with 630 sq. mm, 132kV XLPE cable system on D/C monopole including detailed route survey, laying and installation of cable and monopole alongwith associated accessories/items and civil works.

4. H.G. Infra Engineering: ORDER

Company has been declared as a qualified bidder by the Gujarat Urja Vikas Nigam Ltd for 250 MW/500 MWH out of the project for setting up of 500 MW/1000 MWh Standalone Battery Energy Storage Systems in Gujarat under Tariff-Based Global Competitive Bidding (Phase-IV) with Viability Gap Funding Support, needs to be executed within 18 months.

5. Tembo Global: ORDER

Company has bagged an order worth INR 43.9 Cr from Domestic Organisation, for Water Irrigation, needs to be executed within 12 months.

Canara Bank has appointed K A Sindhu, Chief General Manager, as Functional Head of Chennai Circle Office of the bank in place of Nair Ajit Krishnan, Chief General Manager who has retired from the services of the bank.

Godrej Properties (3.85%), Lodha (3.16%), DLF (2.52%), Prestige (2.30%)

NMDC’s Production & Sales of Iron Ore (Provisional) for and up to November, 2024: Production: 4.51 MT in November 2024, compared to 3.83 MT in the same month last year.

Sales: 4 MT in November 2024, as against 3.79 MT in November 2023.

Shares inched up 0.64% on the NSE to ₹231.54

HDFC SKY announced the launch of its Youth Plan, specifically designed to empower the next generation and millennials. This unique initiative aims to equip young individuals with the essential tools, knowledge, opportunities, and resources necessary for navigating the financial markets with higher knowledge and conviction. 

Sandiip Bhardwaj, COO & CDO of HDFC Securities, remarked, “Our younger investors, especially those aged 18 to 25, represent a dynamic and transformative segment of India’s demographic landscape. While the appeal of online tips and the promise of instant success can be enticing, it is crucial for them to place their trust in reliable research.”

“Navigating the complexities of the stock market requires a comprehensive understanding of market trends, effective risk management, and various strategies. These competencies are best developed through education. Relying on tips can result in misinformed decisions and potentially significant financial setbacks. We strongly encourage our youth to leverage the research recommendations available on HDFC SKY and to enhance their financial knowledge and skills through our learning module, SKY Learn,” he emphasized.

The newly launched Youth Plan, designed for customers under the age of 25, offers an exceptional opportunity for young investors. With no brokerage or account maintenance charges across various segments including equity, derivatives, mutual funds, exchange traded funds, currency, and commodities, this plan enables young investors to engage in both delivery and intraday trading without incurring extra costs during its first year. Customers can unlock all the features of the Youth Plan for a nominal fee of just Rs. 499 per year.

In addition to the core offerings, users will benefit from exclusive guidance tailored specifically for the youth, provided by our in-house experts. This guidance will include a practical, actionable journey, featuring expert research recommendations to help young and new investors successfully navigate the markets.

Adani Ports and Special Economic Zone is targeting to double its cargo handling volume and reach 1 billion ton cargo by 2030 through organic growth, its management told analysts on Investor Day held at Vizhinjam Port in Kerala. Read more

Orient Green Power Company board has approved: 1. Expansion of solar capacity to an extent of 25.00 MW AC (35.00 MW DC) in place of 19.8 MW AC (29 MW DC) (the “Phase – 1 Power Project”). 

2. Change in the EPC Contractor from Solon India Private Limited to Natrinai Ventures Limited. 

Shares inched up 0.91% on the NSE to ₹17.70

The stock markets showed resilience at mid-day on Monday, with the Sensex and Nifty displaying marginal gains amid a mixed sectoral performance. At 12.30 pm, the Sensex was trading at 79,930.70, up 127.91 points or 0.16 per cent, while the Nifty advanced 56.65 points or 0.23 per cent to 24,187.75. 

The market landscape revealed a nuanced trading session, with significant divergence across different sectors. Cement and auto stocks emerged as key performers, driving positive sentiment. UltraTech Cement led the gainers, surging 3.78 per cent, followed closely by Grasim at 3.67 per cent. Maruti Suzuki continued its morning momentum, rising 2.29 per cent, while Mahindra & Mahindra (M&M) added 1.88 per cent. Read more

SAMCO Asset Management Private Limited today announced the New Fund Offer (NFO) of Multi Asset Allocation Fund (MAAF), which opens on 4th December, 2024 and closes on 18th December, 2024. The fund which strategically shifts allocations between equities, Gold, and debt/arbitrage to optimize returns and mitigate risk. The scheme has a minimum application amount of ₹5,000. Powered by the proprietary R.O.T.A.T.E. strategy, the fund has an ability to rotate predominantly into Equity mode when equities are in a bull market, in to gold mode when equities take a back seat but Gold is outperforming and into Debt / Arbitrage mode when both equities and Gold are falling thus striving to deliver stable returns and protect investor wealth.

Sterling Tools has entered a Technical Collaboration Agreement through its subsidiary Sterling TechMobility Limited with Zhejiang Meishuo Electric Technology Co., Ltd., China to manufacture latching relays for power transmission, industrial grids, and other applications in India.

Shares rise 2.78% on the NSE to ₹714

A total of INR 4,49,384 crore AIF (Alternate Investment Funds) investments were made till H1 FY2025 across various sectors; real estate comprised the highest share of 17%

B/w FY2013 to FY2024, the AIF sector maintained a CAGR of 83.4%

AIFs’ overall commitment across Indian sectors rose from INR 2,82,148 Cr in FY 2019 to INR 12,43,083 Cr in H1 FY2025

Surge in AIF activity largely driven by Category II AIFs with a mix of Real Estate Funds, Private Equity, Debt Funds, & Fund of Funds (FoF)

In last five years, Category II AIFs accounted for approx. 80% of total AIF commitments

The price of Natural gas futures has been moderating for nearly two weeks. But looking from a broader level, the contract has been very volatile and there is no clear trend seen on either side. Read more

India’s petrol and diesel consumption, which account for more than half of India’s refined petroleum products usage, rose to a six-month high in November 2024. Read more

Top gainers: Grasim (3.52%), Ultratech Cement (3.46%), Shriram Finance (2.62%), Maruti (2.13%), Dr Reddy’s (1.51%)

Top losers: HDFC Life (-1.85%), NTPC (-1.64%), BEL (-1.22%), L&T (-1.10%), IndusInd (-1.06%)

Of a total of 4,068 stocks that traded on the BSE at 12 noon on December 2, 2024, 2,363 advanced against 1,504 stocks that declined, and 201 remained unchanged. While 219 stocks recorded a 52-week high, 21 hit a 52-week low. A total of 408 stocks traded in the upper circuit, and 205 in the lower circuit.

Rama Steel Tubes board has approved incorporation of a new company with an investment of 10% in the name and style of “ONIX IPP Private Limited”.

Rama Steel stock rises 2.93% on the NSE to ₹12.66

The rupee declined to a new all-time low after data showed a sharp slowdown in the economic growth. Bonds extended gains on bets the central bank may cut interest rates sooner than anticipated.

The rupee fell over 0.2% to 84.6850 per dollar after a government report on Friday showed the economy grew at the slowest pace in almost two years. A stronger dollar spurred by US President-elect Donald Trump demanding a commitment from the so-called BRICS nations to using the greenback also weighed on emerging-market assets. Read more

Aster DM Healthcare stock gained 1.83% on the NSE, trading at ₹509.10. Company and Quality Care India Ltd, backed by Blackstone and TPG, have signed definitive agreements for a merger.

Benchmark indices Sensex and Nifty, which opened on a weak note, recouped their early losses to trade flat in the mid-morning session. At 11:20 am, Sensex was at 79,827.88, up 24 points, while the Nifty was at 24,148.70, up 17.60 points or 0.07 per cent higher. 

Bank Nifty began today’s session at 52,088 compared to last week’s close of 52,056. It has been experiencing considerable selling pressure since the opening of the session and has now depreciated to 51,820, down nearly 0.5 per cent.

Read more.

Nifty 50, the benchmark index, opened today’s session almost flat at 24,141 against Friday’s close of 24,131. After opening, it has advanced a little and is now trading at 24,160, up by a marginal 0.1 per cent.

Read more.

Rupee opened on a flat note and rose just 2 paise from its all-time low level to 84.58 against the US dollar in morning trade on Monday, on disappointing macroeconomic data and a negative trend in domestic equities.

Read more.

Tembo Global Industries has bagged an order from Domestic Organisation, for water irrigation for ₹43.89 crore

Shares trade flat on the NSE at ₹693.35

Cochin Shipyard stock hits upper circuit on the NSE at ₹1,656.15, higher by 5%. Company, on November 30, 2024 signed a contract with the Ministry of Defence for Short Refit and Dry Docking of a Large Indian Naval Vessel.

Crude oil futures traded higher on Monday morning supported by the latest data showing improved manufacturing activity in China. Read more

The Indian stock market opened on a subdued note on Monday, with the Sensex and Nifty experiencing marginal declines as investors digested mixed economic signals and awaited key policy developments. Read more

Steel Strips Wheels Ltd achieved a net turnover of ₹371.52 crore in November 2024 vs net turnover of ₹371.98 crore in November 2023 with a marginal dip of 0.12% y-o-y and achieved gross turnover of ₹455.05 crore in November 2024 Vs Gross turnover of ₹455.87 Crore in November 2023 with a marginal dip of 0.18% y-o-y.

Steel Strips Wheels stock trades flat on the NSE at ₹203.80

AXISCADES Technologies Ltd (ACTL) has unveiled a strategic restructuring initiative aimed at enhancing the business operations of its Defence-focused subsidiaries, Mistral Solutions Pvt. Ltd. (Mistral) and AXISCADES Aerospace & Technologies Pvt. Ltd. (ACAT). 

Shares surge 3.21% on the NSE to ₹457.

Track live movements of auto stocks here: 

Lupin has confirmed that it has received tentative approval from the US FDA for Sitagliptin and Metformin Hydrochloride Tablets to market a generic equivalent of Janumet® Tablets, 50 mg/500 mg and 50 mg/1000 mg of Merck Sharp & Dohme LLC.

Stock up 1.39% on the NSE, trading at ₹2,079.30

Indian shares opened lower on Monday, as concerns over domestic growth and its effect on the central bank’s monetary policy decision later this week weighed on investor sentiment. Read more

To gainers: Shriram Finance (1.93%), Maruti (1.87%), Apollo Hospitals (1.12%), Grasim (1.09%), Sun Pharma (1.09%)

Top losers: HDFC Life (-1.20%), IndusInd (-1.12%), ONGC (-1.09%), Reliance (-0.93%), Bajaj Finance (-0.93%)

Crude oil futures traded higher on Monday morning, supported by the latest data showing improved manufacturing activity in China. At 9.21 am on Monday, February Brent oil futures were at $72.23, up by 0.54 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $68.39, up by 0.57 per cent. December crude oil futures were trading at ₹5803 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5814, down by 0.19 per cent, and January futures were trading at ₹5800 against the previous close of ₹5808, down by 0.14 per cent.

The Nifty’s rebound on Friday generated a “bullish belt-hold” formation as the prior day’s losses were largely recouped - this pattern is seen when a bullish day whose open matches the lows immediately follows a long bearish day. That makes Thursday’s lows at 23,873 important for bulls and bears alike, while resistance remains steadfast at 24,360 followed by the 24,540 area.

Nomura On Dixon Tech

Buy Call, Target At Rs18,654/Sh

Co Launches Mass Production Of Google Pixel Smartphones

China+1 Can Lead To Significant Long-term Potential From Google

Est Addition Of Rs1,500 Cr Revenue, 4% Of FY26 Smartphone Sales Depending On Ramp-up

Co Will Showcase Capabilities To Make Premium Phones & Will Be Key Longer-term Positive

HSBC on Cable and Wire OEMs

Demand environment looking +ve for CY25

While capacity growth is set to outpace demand growth, still see margin improvement in CY25 led by wires biz

Polycab– Buy, TP Rs 7750

KEI Ind– Hold, TP Rs 4350

RR Kabel– Hold, TP Rs 1700

HSBC on Titagarh Rail

Buy, TP cut to Rs 1425 from Rs 1980

With state elections behind, awarding of metro rolling stock has resumed; opportunity pipeline is strong

Though execution of existing metro & Vande Bharat orders are slower than earlier expected, leading to est. cut

Cut Revenue & EPS Estimate By 9-11% In FY26/27

Nuvama on Adani Ports

Buy, TP Rs 1960

Investor Day at its Vizhinjam port

Takeaways

i) Reiterated its guidance of 1bnt handling vol by 2030

ii) Logistics to be significant growth driver

iii) Significant tech advancement in ports & logistics

iv) Strong b/s discipline

MS On IndusInd Bank

Equal-Weight Call, Target Cut To Rs1,150/Sh From Rs1,400/Sh

Stock Price Has Fallen 30% Post Earnings Owing To MFI Asset Quality

Detail Risk Reward – While Not Bad, Risks Are Towards Downside

Continue To Apply 30% Bear Case Weight & Better Risk Reward At Large Private Banks

GS On HDFC Bank

Buy Call, Target At `2,156/Sh

Maintain Positive View

See EPS Growing At A 15% CAGR Over FY24-27 On Back Of Core PpOP Growth Of 18% CAGR

See Improvement In Margin, Cost-To-Assets Driven By Operating Leverage

Investors May Start To Focus On EPS Growth More Than PpOP Growth To Adjust For Credit-Cost Outcomes

Expect Credit Cost To Remain In A Predictable Range Of 40-45 bps Of Loan Book

Jefferies On Bajaj Fin

Buy Call, Target At `8,400/Sh

Co Withdrew Co-branded Credit Cards Where It Partnered With RBL Bank & DBS Bank

Withdrawal Of Co-branded Credit Card Reflects Concern On Asset Quality In Mass-Mkt Credit Card

Limited Impact As Loss On Origination Fee May Be Partly Made Up By Lower Costs

Within SME Loans, Flexi-Loan Book Also Shouldn’t Face Regulatory Risks As It’s Quite Compliant

MS on RBL BK

UW, TP Rs 180

Co-branded card partnership with Bajaj Fin discontinued

Bajaj Fin was a sizeable channel for RBL Bank in terms of credit card issuance, & this move could constrain RBL’s potential credit card market share over medium term.

While RoA for credit card portfolio may improve, believe this is net -ve for medium-term earnings Earnings outlook is tough, particularly driven by challenges in the MFI segment.

This will likely keep RoE below COE & hence val at 0.6x bk

Investec On RBL Bank

Hold Call, Target Cut To `170/Sh

Co Has Terminated Its Co-branding Card Arrangement With Bajaj Fin, Its Largest Sourcing Partner

Move Was Likely Prompted By Need To Reduce Dependence On Bajaj Fin

Expect Headline Credit Growth To Moderate By 200 bps To 13-14% YoY In FY25

Growth May Revive In H2FY26 Onwards As Co Scales Up Arrangements With New Cobranding Partners

CITI on RBL BK

Buy, TP Rs 255

RBK & BAF decided to stop fresh issuance of co-branded credit card

Impact: BAF sourcing constituted 50-55% 

Origination cost sharing will terminate but trail payout will continue.

Mgmt expects to grow credit card portfolio at 10-15% in near term

Emkay on Anant Raj

Initiate BUY, TP Rs 925 

⁠Making it big in high-growth data center & cloud space

In Real Estate, comfortable launch pipeline to drive bookings/collections CAGR of 18%/39% during FY24-27E.

Deleveraged b/s & likely fund-raise to support Data Center growth

CITI ON GDP

Real GDP Growth Fell To A 7-quarter Low Of 5.4% YoY In Q2FY25 (Vs BBG Est Of 6.5%)

Investment Contributed 70 bps Of The 130 bps Growth Deceleration

There Was A Broad-Based Slowdown In Industrial Growth, While Services Remained Resilient

Part Of Industrial Slowdown Could Be Due To One-offs & An Unfavourable Base

Consumption Growth Slowdown Was In-line With Expectations - Rural Better Than Urban 

Activity Data For Oct Remained Mixed

There Is Improvement In Rural Consumption & Continued Slowdown In Public Capex

Revise FY25 Real GDP Growth To 6.4% YoY (Vs 7% Earlier, RBI Est At 7.2% YoY)

While Elevated Inflation Makes A Dec Rate Cut Unlikely

RBI Could Explicitly Acknowledge Need To Support Growth, Cementing A Feb Rate Cut View

That Said, The RBI Could Consider CRR Cut In Dec To Ease Liquidity Pressures.

There Could Be Renewed Urgency On Public Capex, Even If It Remained Below The FY25 Target

UBS ON GDP

Growth In The September Quarter Was Much Below Consensus Expectation

Lowering FY25 Real GDP Growth To 6.3% YoY; Sequential Pick-up Likely In H2

Need Policy (Monetary & Fiscal) Support To Take Growth Towards 6.5% YoY

By Expenditure: Consumption And Capex Down; Net Export Contribution Up

By Production: Weak Industry Segment Growth Led The Slowdown.

MS On GDP

Expect Growth To Have Likely Bottomed Out And Thus Rebound In H2FY25

Mark-To-Market GDP Cut To 6.3% YoY For FY25

Slowdown Was Evident In Both Capex & Private Consumption

However, Consumption Growth At 6% Outpaced Capex Growth Of 5.4%

Net Exports Contributed Positively

Industry Remained Weak At 3.9% YoY With Manufacturing & Electricity Being A Drag

HSBC On GDP

GDP Grew At A Tepid 5.4% In Quarter Ending September, Well Below Expectation

Industry Came In Weaker Than Services, & Consumption Weaker Than Investment

Believe RBI Will Cut Rates Starting Feb, But Could Ease Liquidity Earlier, Starting December

JP Morgan On GDP

Nominal GDP Growth Slowed To 8%, Lowest Since December 2020

While Quantum Of Undershoot A Surprise, Trajectory Of Slowing Growth In Recently Is Not

Expect The First Cut In Feb, When The Has More Conviction Of Headline CPI Rolling Over

Yesterday’s Sharp GDP Downside Surprise Has Increased Odds Of A Cut At Next Wk’s Review

Base Case Remains That RBI Remains On A Dovish Hold Next Week

RBI Will Either Announce Or Signal Some Liquidity Easing In Anticipation Of Tightening Liquidity

Nomura On GDP

Slowing Consumption & Invst Growth Suggest Domestic Growth Engines Are Sputtering

Moderation Reflects A Mix Of Transient Factors, Which Should Reverse

Moderation Reflects Endemic Factors As Well Such As Ebbing Of Post-Pandemic Pent-Up Demand

Moderation Reflects Slowing Income Growth, RBI’s Macro-prudential Tightening & Weak Pvt Capex

Lower Our FY25 GDP Growth To 6.0% (From 6.7%) And FY26 To 5.9% (Vs 6.8%)

Expect 100 bps In Rate Cuts, Starting December

Goldman Sachs On GDP

Lower Our CY24 & FY25 Real GDP Growth Est By 30 Bps & 40 Bps To 6.4% YoY & 6.0% YoY Respectively

Maintain Our CY25 And FY26 Real GDP Growth Forecast At 6.3% YoY Each

Diamond Power Infrastructure Ltd.

Stock Split From Rs.10/- to Rs.1/-

Previous day Closing Price – Rs. 1520

Ex-Split 03 Dec 2024 (Tomorrow)

Last date for Cum-Split Today

Wipro Ltd.

Bonus issue 1:1

Previous day Closing Price – Rs. 578

Ex-Bonus 03 Dec 2024 (Tomorrow)

Last date for Cum-Bonus Today

UBS on Petronet: Upgrade to Buy on Company, raise target price at Rs 400/Sh (Positive) 

Emkay on Anant Raj: Maintain Buy on Company, target price at Rs 925/Sh (Positive) 

Nomura on Dixon Tech: Maintain Buy on Company, target price at Rs 18654/Sh (Positive) 

Nuvama on Adani Ports: Maintain Buy on Company, target price at Rs 1960/Sh (Positive) 

UBS on Indian GDP: Growth in the September quarter was much below consensus expectation, lowering FY25 real GDP growth to 6.3% YoY; sequential pick-up likely in H2 (Neutral) 

Bernstein on Indian GDP: RBI will get more comfortable with policy actions, but this will impact Rupee, so the pace of cuts has to be modest (Neutral) 

Citi on Indian GDP: Real GDP growth fell to a 7-quarter low of 5.4% YoY in Q2FY25, there was a broad-based slowdown in industrial growth, while services remained resilient (Neutral) 

Jefferies on Indian GDP: Weak 5.4% GDP growth for Sep quarter is not surprising as corp results were already implying weakness (Neutral) 

HSBC on Titagarh: Maintain Buy on Company, cut target price at Rs 1425/Sh (Neutral) 

Jefferies on Bajaj Finance: Maintain Buy on Company, cut target price at Rs 8400/Sh (Neutral) 

UBS on Pharma Sector: US price erosion has now reverted to mid-cycle range of 4-6% y/y (Neutral) 

Nomura on Indian GDP: Slowing consumption and investment growth suggest domestic growth engines are sputtering, we lower our FY25 GDP growth forecast to 6.0% (from 6.7%) (Negative) 

MS on Indian GDP: QE Sep GDP Disappoints; Mark to Market FY25 Lower (Negative) 

MS on Indusind Bank: Maintain Equal weight on Company, cut target price at Rs 1150/Sh (Negative) 

Investec on RBL Bank: Maintain Hold on Company, cut target price at Rs 170/Sh (Negative)

Zscaler, Inc. (Post market) (Sector- Technology)

BHP Group Limited (TENT) (Sector- Metals)

07:15 China manufacturing PMI (Expected: 50.3 vs Previous: 50.3)

10:30 India manufacturing PMI (Expected: 57.3 vs Previous: 57.5)

14:30 Euro manufacturing PMI (Expected: 45.2 vs Previous: 45.2)

15:00 U.K. manufacturing PMI (Expected: 48.6 vs Previous: 48.6)

19:30 U.S. ISM manufacturing PMI (Expected: 47.3 vs Previous: 46.5)

India’s GDP growth for Q2 FY2024-25 slowed significantly to 5.4%, below expectations, reflecting weakened manufacturing, consumption, and private investments. GVA grew modestly at 5.6%, with manufacturing dipping to 2.2% and inflation eroding urban demand. However, agriculture provided some relief, rising 3.5%, aided by favorable monsoons.

After the announcement, G-sec yields fell across maturities, with the 1-year OIS dropping from 6.5075% to 6.3625%, and the 2-year OIS dropping from 6.2350% to 6.0375% signaling an increased likelihood of rate cuts. Bond yields also declined, with the old and new 10Y yields, for instance, dropping by 6 bps. 

The contraction in manufacturing growth and weaker consumption data likely contributed to expectations of RBI intervention. The decline in OIS rates further suggests the market’s anticipation of easier monetary policy. The slowdown has intensified pressure on the RBI to consider interest rate cuts to support growth. Policymakers are optimistic about rural demand stabilizing the economy, but a sharp rebound is necessary to meet annual growth projections.

The weekend brought bad macro news for the market – a weak GDP print, uninspiring fiscal data, and a Trump tariff threat to BRICS. This should trigger some near-term weakness in the markets, but some of this was already known and partially priced in. We do not see the case for a major market sell-off but reiterate that near-term upside is also limited due to earnings weakness and valuations. We keep our Dec-25E Nifty target unchanged at 25,000. An incremental correction over 5% in the Nifty is an entry opportunity, in our view.

GDP miss known and partially priced in

The weak earnings season, with the BSE-500 delivering zero YoY earnings growth, already told us that the economy faced a growth challenge in 2QFY25. The market absorbed that information with an 8% fall in the BSE-500 since 28-Sep and a 2.5% cut in Nifty earnings forecasts for FY25. Beyond the sticker-shock impact, we do not see this as incrementally game-changing news.

Penciling-in a capex recovery

We have penciled-in a 2HFY25 recovery, but it is likely to be led by central government capex. Spending is behind the curve and the mathematical 61% YoY asking rate for Nov-24 to Mar-25 puts the annual target at risk. However, we expect a sharp sequential pick-up in sectors like defense and railways. The sharp decline in government balances is an indicator of this. Channel checks also indicate that the government has started to disburse pending balances, which is trickling into incremental demand.

Consumption demand – sluggish for 2H

Consumption demand has been disappointing for 1HFY25 and we think the recovery will be pushed into FY26. There have been multiple macro challenges – high base, weak jobs market, and credit tightening by the RBI. Our expectations of a mass category consumption revival also appears to have been belied with FMCG companies reporting weak numbers. We believe these are temporary factors but a turnaround will take at least 2-3 quarters and a revival seen only in FY26.

Ball in RBI’s court

A silver lining is that the weak growth opens the door for an RBI rate cut in Dec-24. There are challenges, however: inflation is still running hot at over 6% and the DXY strength puts the RBI in a tricky spot for the next 1-2 quarters. Trump’s threats to retaliate with sanctions on BRICS countries attempting de-dollarization add to the uncertainty. We believe that rate cuts will anyway have a limited impact as leverage levels are low. An RBI rethink of lending curbs on banks and NBFCs, however, would have a more meaningful impact.

Sectoral preferences

We would stay away from consumer-led sectors due to our expectations of a delayed revival in consumption vs capex. Our key OW remain IT/Energy/Materials/Utilities whereas we remain UW on Staples. We see a tactical opportunity in Financials but would use the rally to sell, as we remain structurally UW on the sector

In the last week, emotions ran high as the market moved sharply up on Monday and the gains were negated by a sharp fall on Thursday. The underlying news events were just as conflicting - optimism prevailed after the Maharashtra election results but the allegations about the Adani group raised concerns among investors.

On Friday, the excitement in the Pharma and Auto stocks helped the Nifty close up 0.91% at 24,131.10 while the S&P BSE Sensex settled 0.96% higher at 759.05 points. The market’s apparent discounting of the anticipated slowdown in India’s Q2 GDP to 6.5% suggests that traders are looking beyond short-term economic data and focusing on the longer-term growth prospects of the Indian economy.

We are starting the forthcoming week with conflicting events. The Maharashtra election results gave a clear mandate to the Mahayuti alliance, but it has shown uncertainty regarding the leadership pick of the Chief Minister. Adani stocks have mostly recovered from the rout in earlier week but a new concern emerged about the GDP slump. The GDP growth number has come down to 5.4%, compared to 8.1% in the corresponding quarter a year back.

The candlestick pattern suggests the nearest resistance level at 24,350-24,360 for the index. Many traders will likely be hesitant to buy above this level, remembering past failures to break through this resistance. A breakout above this level could trigger a wave of buying, fueled by the fear of missing out (FOMO). As long as the index remains below 24,360, short-term traders may book profits on any bounce and wait for a fresh breakout. Holding on to positions for too long, hoping for further gains, can be detrimental if the market reverses its course.

Global markets are grappling with anxieties stemming from geopolitical tensions and uncertainties surrounding the U.S. Fed’s interest rate decisions. The possibility of changing global trade dynamics under President-elect Donald Trump, particularly due to the threat of U.S. tariffs, is further adding to the global market unease.

The Indian rupee, while ending Friday relatively flat at 84.4825, remains precariously close to its all-time low of 84.5075, reached just last week. In contrast to the anxieties impacting Asian markets and currencies, the U.S. dollar has experienced a surge, mirroring a similar upward trend in U.S. yields, ever since Donald Trump’s election victory in early November.

Though Nifty has shown strength in the last week, the medium-term trend remains weak. From its September high of around 26,277, the Nifty is still down almost 12%. Novice traders often confuse short-term and long-term trends, potentially leading them to make impulsive decisions during these consolidations. It is crucial to remember that the market is designed to exploit such mistakes. Traders should focus on managing positions with a pre-determined strategy, rather than trying to predict every short-term fluctuation.

Dixon Tech: Company to launch mass production of Google Pixel (Smart Phones) for Compal’s designated customer (Positive) 

RVNL: Company has been awarded a ₹642.57 Cr contract by PSPCL (Positive) 

Emami Realty: Company is poised to generate an impressive revenue of approx 850 cr from its latest project, Emami Aamod (Positive) 

Coal India: Company subsidiary, Eastern Coalfields Ltd (ECL), will see a price increase for Rajmahal coal to Rs 700/tonne from Rs 450/tonne, effective 30/11/2024. (Positive) 

DLF: Company subsidiary sold Kolkata Tech Park to RDB Primarc Techno Park LLP for Rs 637 crore. (Positive) 

GP Petroleum: Company signed Rs 223 crore supply agreement with Hindustan Petroleum Corporation Ltd for 50,000 MT of Bitumen (Positive) 

Best Agrolife: Company subsidiary, Sudarshan Farm Chemicals, received a 20-year patent for a process for manufacturing of Methyl 2 (Positive) 

GRP Ltd: Company secured a €15 million loan from PROPARCO for a secured senior credit facility (Positive) 

Suven Pharmaceuticals: Long-term bank facilities rating remains on ‘Watch Positive’, short-term reaffirmed at ‘CRISIL A1+. (Positive) 

Ahasolar Technologies: Company signed a 20-year Power Purchase Agreement with Saffron Enclave Pvt Ltd for a 100 KW solar power plant in Gurgaon. (Positive) 

Lupin: Company received tentative USFDA approval for a generic diabetes drug (Sitagliptin & Metformin). (Positive) 

Zydus Wellness: Company acquired 98.14% stake in Naturell (India) Private Limited (Positive) 

Cochin Shipyard: Company signs a contract worth Rs 1,000 cr with the Ministry of Defence for Short Refit and Dry Docking of a Large Indian Naval Vessel (Positive) 

UBL: UP state shifts excise duty on beer from alcohol companies to wholesalers (Positive) 

ONGC: Company acquires 0.615% Stake in ACG and 0.737% stake in BTC, Azerbaijan (Positive) 

Aster: Company and Blackstone-backed Quality Care to merge and Create One of the Top 3 Hospital Chains in India with 10,150+ beds (Positive) 

Sterlite Tech: STL won an arbitration case against MTNL, receiving ₹15.90 Cr + interest. (Positive) 

KPI Energy: Receipt of Letter of Award for Setting up of Grid Connected 300 MWAC Ground Mounted Solar PV Plant Of Coal India Ltd. (Positive) 

Ashok Ley: Hinduja Tech Completes TECOSIM Group Acquisition, Further Extending Its Global Automotive Engineering Reach (Positive) 

H.G. Infra engineering: Company has been selected as a qualified bidder by Gujarat Urja Vikas Nigam Ltd for a 250MW/500MWH battery energy storage project (Positive) 

NCC: Company confident of reaching Rs 20,000-22,000 crore order inflows target, with 58% achieved so far. (Positive) 

KEC International: Bags New Orders worth Rs 1,040 Cr in Its T&D Business in International Markets (Positive) 

Biocon: US FDA approves Arm’s Biocon Biologics’ YESINTEK, a monoclonal antibody that is used to treat Crohn’s disease (Positive) 

Greaves: Board approves Initial Public Offer (IPO) offer of arm Greaves Electric Mobility. (Positive) 

Maruti Suzuki: Total Sales At 1.81 Lk Units Vs Poll Of 1.77 Lk Units (Positive) 

TVS Motor: Total Sales At 4.01 Lk Units Vs Poll Of 3.87 Lk Units (Positive) 

TVS Motor: Company acquires 39.11% stake in DriveX Mobility for Rs 97.79 Cr, increasing its holding to 87.38%. DriveX, a two-wheeler trading and Distribution Company. (Neutral) 

Tata Motors: Total Sales at 74,753 Units Vs Poll Of 74,200 Units. Company opens facility in Pune to scrap 21,000 vehicles a year (Neutral) 

Macrotech Developers: Company acquires 100% stake in Janus Logistics (Neutral) 

Cipla: Block Deal: Promoters to sell 1.7% stake worth Rs 2,000 crore via block deal on Monday. (Neutral) 

Phoenix Mills: Company subsidiaries, PCPL and ISML, received GST notices totaling Rs 19.96 Cr and Rs 7.76 Cr respectively. (Neutral) 

CESC: Company acquires 100% of Bhojraj Renewables Energy. (Neutral) 

TBO Tek Limited: Company incorporated a wholly-owned subsidiary, PT TBO Tek Indonesia, in Indonesia (Neutral) 

IndiaMART Intermesh: Company invests Rs 14.28 Cr in Mobisy Technologies, a SaaS firm, increasing its stake to 31.33% (Neutral) 

Shriram Finance: Company acquired 40,000 CCDs of Shriram Housing Finance Ltd. from Kotak Mahindra Investments Ltd. for Rs 423.95 Cr. (Neutral) 

Coromandel: Company received a customs order demanding ₹7.31 Cr in IGST, ₹3.76 Cr redemption fine and penalty. (Neutral) 

KIMS: Company Secretary and Compliance Officer, CS. Uma Shankar Mantha, resigned. Effective December 17, 2024 (Neutral) 

Aster DM Healthcare: Company to acquire 1.9 cr shares of QCIL at Rs 445.8/share (Neutral) 

Max Financial Services: Company unit max life insurance has not received any IRDAI directive on Bancassurance capping. (Neutral) 

Adani Enterprises Ltd: Company acquired Aviserve Facilities Private Limited and Aviground Facilities Private Limited by WOS of the Company. (Neutral) 

REC: Ms. Rashmita Jha’s additional charge as Chief Vigilance Officer (Neutral) 

Castrol India: Company completed its ₹487.5 Cr acquisition of a 7.09% stake in ki Mobility Solutions (Neutral) 

Petronet LNG: Company’s board reappointed Sanjeev Mitla and Sundeep Bhutoria as Independent Directors for 3 years. (Neutral) 

Hero Motocorp: Total Sales at 4.60 Lk Units Vs Poll Of 4.78 Lk Units (Neutral) 

Hero MotoCorp: Company announces the resignation of Rachna Kumar, Chief Human Resource Officer. (Neutral) 

RBL Bank and Bajaj Finance: Mutually agree to stop issuance of new co-branded credit cards (Neutral) 

BSE: NSE transferred Monthly expiry of Fin Nifty, Midcap select, Bank Nifty and Nifty Next 50 to Thursday, BSE also initially shifted all expiries on Tuesday (Neutral) 

CreditAccess: Raises Euro 25 Million from the German Investment Corporation, DEG (Neutral) 

Greaves: Neeraj Sharan elevated to Executive Director & CEO of Excel Controlinkage (Neutral) 

Mayur Uniquoters: Credit rating reaffirmed by CARE Ratings. Long-term bank facilities rating remains CARE AA; Stable. (Neutral) 

Mahindra & Mahindra: Company announces the incorporation of Steer Hybren Pvt Ltd., a wholly-owned subsidiary of its subsidiary, Mahindra Susten Pvt Ltd (Neutral) 

Arfin India Ltd: company announced the resignation of CFO Tarunkumar Acharya, effective November 30, 2024 (Neutral) 

MOIL: Cuts Price of Ore with Manganese Content of Mn-44% & Above By 3%. Price of Ore with Manganese Content Below 44% Increased By 1% (Neutral) 

Aviation Stocks: ATF Price Increased In Delhi to Rs 91,856.84/kl from Rs 90,538.72/kl (Neutral) 

Shalimar Paints: Acuite downgraded and withdrew ratings due to GECL loan servicing delays. (Negative) 

Home First: True North, Orange Clove, Aether Fund to sell 14.7% stake via block deals as media sources. (Negative) 

Hyundai: Total Sales At 61,252 Units Vs Poll Of 65,000 Units (YoY) (Negative) 

Escorts Kubota: Total Sales Down 9.4% At 8,974 Units Vs Poll of 9700 Units. (Negative)

Aster DM Healthcare Ltd and Quality Care India Ltd, backed by Blackstone and TPG, one of the largest privately held hospital chains in India with a focus on emerging cities, have signed definitive agreements for a merger. The merger has been approved by the board of directors of the respective companies and is subject to regulatory, corporate and shareholders’ approvals. The merged listed entity will be named Aster DM Quality Care Ltd. Read more

Domestic markets are expected to open positive on Monday despite weak GDP growth reported in the second quarter. As global markets are mixed and are struggling for direction, analysts said the focus has shifted to the Reserve Bank of India’s monetary policy announcement on Friday. However, unabated selling by FPIs will keep the market on the leash, they said. Read more

Azim Hasham Premji-led Wipro Enterprises has said its consolidated revenue from operations increased 9.8 per cent to ₹16,902 crore in the financial year ended March 2024 while its profit jumped 35 per cent to ₹1,903.1 crore. Read more

Mahindra & Mahindra will utilise its existing sales network to sell its electric vehicle range as the automaker looks to offer all the choices to customers under one roof, according to a top company executive. Read more

Hinduja Tech Ltd has completed the acquisition of Germany-based engineering services provider TECOSIM Group GmbH, marking a significant milestone in its vision to become one of the top 10 global mobility engineering companies. Read more

Maruti Suzuki India on Sunday reported a 10 per cent year-on-year increase in its total sales at 1,81,531 units in November. The automaker had dispatched 1,64,439 units to its dealers last November last year.

Total domestic passenger vehicle wholesales were at 1,41,312 units as compared with 1,34,158 units in the year-ago month, a growth of 5 per cent, it added. Read more

Biocon Biologics, a subsidiary of Biocon Ltd, secured US Food and Drug Administration (FDA) approval to commercialise YESINTEK, a biosimilar. The biosimilar drug will be used for the treatment of Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis. Read more

US President-elect Donald Trump’s latest tariff threat directed towards the BRICS nations, including India, warning against the proposed adoption of a BRICS common currency, is unrealistic and more symbolic than practical, according to research body Global Trade and Research Initiative (GTRI). Read more

Andhra Pradesh is in a cleft stick with regard to electricity supply from the Adani Green Energy project, that is now in some controversy. Sources told businessline that the State Cabinet is likely to discuss the status of the power supply agreement between the State discom and the Solar Energy Corporation of India, in its next meeting expected on December 3. Read more

The stock of Housing & Urban Development Corporation (HUDCO) saw a steady decline in price between mid-July and October. The downtrend began on the back of the resistance at ₹350. But in November, the stock found support at ₹200, and the bears lost traction. Last week, it recovered on the back of ₹200 and moved above both 20- and 50-day moving averages. The scrip also broke out of the resistance at ₹230. Read more

Weekly snapshot: Indian equity indices closed in green zone during the second consecutive week for the first time since the September, with the support from public sector stocks. 

Indices Performance: Nifty 50 closed with a gain of 0.94 percent while Nifty Bank performed inline and closed with a gain of 1.80 percent. Broader indices have outperformed as Nifty Midcap 100 closed with a gain of 2.50 percent while Nifty Small cap 100 close with a gain of 5.04 percent during the same duration. 

Weekly Fund-flow Activities: During the week, FIIs have sold equities worth of Rs 5026.7 cr while DIIs have bought equities of Rs 6924.7 cr in cash segment. 

Macro Data: U.S. nonfarm employment data, Fed Chair Powell Speech, OPEC meeting and manufacturing data from major economies are among scheduled major macro data for the upcoming week.

29 November 2024

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -4383.55 

(14786.35 - 19169.9) 

DII: NET BUY: +5723.34 

(15201.68 - 9478.34)