Share Market Highlights 04 January 2024: Sensex climbs 491 pts; Nifty closes above 21,650; realty index jumps over 6%

Equity benchmark indices Sensex and Nifty rebounded on Thursday after falling in the past two days and ended nearly 1 per cent higher, mainly on buying in HDFC Bank and Bajaj Finance.

The 30-share BSE Sensex jumped 490.97 points or 0.69 per cent to settle at 71,847.57 points. During the day, it rallied 598.19 points or 0.83 per cent to 71,954.79 points.

The Nifty climbed 141.25 points or 0.66 per cent to 21,658.60 points.

The rupee appreciated 7 paise to close at 83.23 against the US dollar on Thursday, helped by a bullish trend in domestic equities and weakness of the American currency in the overseas market.

However, rising crude oil prices capped sharp gains for the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened flat at 83.30 against the greenback.

Transformers and Rectifiers (India) Limited has completed the ‘Dynamic Short Circuit Test’ on 250 MVA, 400/33+33 kV class Three Phase Power Transformer. The 250 MVA transformer shall be used for power evacuation in a large solar park located in Rajasthan.

“Market bounced back after the last two negative trading days led by strong monthly business updates of leading banks, emphasizing robust credit growth. The Realty sector was the highest gainer in anticipation of robust demand in the residential category, which was supported by healthy housing loans disbursement data announced by banks. The Asian market engaged in profit-booking as Fed minutes indicated that rates will be put on-hold in the near-term.”

Apollo Tyres has received order passed under GST Act levying penalty of ₹0.20 lakh from Deputy Commissioner, Telangana (GST). The Company will file appeal before Appellate Authority in due course.

“The Bank Nifty witnessed a robust comeback by the bulls, decisively surpassing the hurdle at 48,000 on a closing basis. This breakthrough confirms the resumption of the uptrend, indicating a potential move towards the target of 50,000. The bullish crossover in the RSI further supports the positive momentum. In case of any pullback, the index has a solid support at 47,700, serving as a cushion for the bulls.”

Shree Krishna Paper Mills & Industries board has approved sale, lease or otherwise dispose of two plots of Keshwana units subject to the approval of the shareholders by postal ballot.

Ministry of Defence inked two contracts for procurement of Qty-697 Bogie Open Military (BOM) Wagons at a cost of ₹473 crore with Jupiter Wagons Limited and procurement of Qty-56 Mechanical Minefield Marking Equipment (MMME) Mark II at a cost of ₹329 crore with BEML Ltd, under Buy (Indian-IDDM) category.

REC Limited has signed a Memorandum of Understanding (MoU) with Bank of Baroda in order to facilitate joint sanctions of loans to fund power, infrastructure and logistics projects in the country over the next three years.

Ashoka Metcast had sold 12,42,801 Equity Shares of Vivanza Biosciences Limited through open market sale, resulted in dilution in percentage of equity shareholding of the Company from 22.61% to 19.50%. 

Ashoka Metcast stock rose 2.03% on the NSE, trading at ₹32.60.

Torrent Power Limited’s shares were up 7.67 per cent after the company inked four non-binding Memorandums of Understanding (MoUs) with the Gujarat government during the 10th edition of Vibrant Gujarat Global Summit.

DCM Shriram Ltd signs MoU with Government of Gujarat to invest a proposed ₹12,000 crore by 2028.

The stock rose 2.95% on the NSE, trading at ₹1,069.

DroneAcharya Aerial Innovations Limited has said that it is set to acquire PYI Technologies Private Limited, a leading Pune-based Deep Tech Drone Company. This strategic merger amplifies DroneAcharya’s commitment to enriching its service spectrum and delivering enhanced value-added solutions in the dynamic drone industry.

As an integral part of its growth strategy, DroneAcharya will solidify its position as a 51% shareholder in PYI Technologies, fostering a collaborative environment aimed at pioneering customised, avant-garde solutions in partnership with PYI Technologies.

PYI Technologies has swiftly emerged as a trailblazer in drone manufacturing and solution development, boasting an extensive array of cutting-edge offerings:

LTIMindtree has announced integration of its subsidiaries; Syncordis and Nielsen+Partner to form a specialised Banking Transformation Practice (BTP).

Major gainers on the NSE at 3 pm:

Bajaj Finance (4.66%); Tata Consumers (3.79%); NTPC (3.54%); ONGC (3.17%); IndusInd (3.08%)

Major losers:

BPCL (-2.06%); LTIMindtree (-1.60%); Dr Reddy’s Lab (-1.13%); Hero Motocorp (-1.04%); HCL Tech (-0.99%)

Stocks advanced on BSE at 3 pm on January 4, 2024, were 2,527 against 1,268 stocks that declined; 122 stocks remain unchanged. Total stocks traded were 3,917. The number of stocks that recorded a 52-week high was 469, and those that hit a 52-week low was 11.

Maithan Alloys has informed that CARE has reaffirmed ‘CARE AA; Stable, (i.e. Double A; Outlook: Stable) rating for the company’s long-term bank facilities and, CARE A1+, (i.e. A One plus) rating for short-term bank facilities.

The stock trades at ₹1,171 on the NSE, down 0.09%.

Arrowhead Separation Engineering Limited has received the contracts for procurement of dryers, flaker & spares of system totaling to approx. ₹2.03 crore. 

The stock surged 5.88% on the BSE, trading at ₹198.

MEP Infrastructure Developers informed the exchanges that Ozoneland MEP Solapur Ring Road Pvt. Ltd., Mumbai, has completed the Project of Improvement to Solapur Ring Road SH-205 Km 0/00 to 28/200, 29/800 to 44/600, 48/400 to 54/150 and 62/00 to 66/550 Tal- North Solapur – Dist. Solapur. (Hybrid Annuity) PN -153 viz. improvement of 45 Kilometer Ring Road connecting key areas such as Degaon, Kegaon, Belati, Soregaon, Kumbhari, Dodhi and Kavathe before the scheduled time for completion of project. 

MEP stock rose 2.68% on the NSE, trading at ₹15.30.

Life Insurance Corporation of India (LICI) Mauritius Branch has received demand order for penalty from Mauritius Revenue Authority, Mauritius. The Mauritius Branch has filed a representation with the Mauritius Revenue Authority for waiver of the penalty.

LICI stock trades at ₹835.55 on the NSE, down by 0.38%.

Welspun Corp has informed the receipt of new Line Pipes orders in India and USA, and with cumulative orders received since last disclosure have crossed 150 KMT valued at ₹1,500 crore. The new orders also include a Gas Pipe Line order in the USA. These orders will be executed in FY24 and FY25. 

Welspun Corp stock rises by 1.51% on the NSE, trading at ₹567.80.

State Bank of India has informed about the issuance of $1 billion through syndicated loan. The bank stock trades at ₹642.85 on the NSE, down 0.09%.

RACL Geartech has won First Prize in the category of Engineering and Builders Hardware in recognition of Highest Export Performance for the Financial Year 2022-23. 

The company’s stock trades at ₹1,221.65 on the BSE, up 0.05%.

After a gap-up opening, equity markets continue their upward momentum through the afternoon on Thursday. The NSE Nifty was up by 0.64 per cent or 138.10 points to 21,655.45, while the BSE Sensex was up by 0.77 per cent or 547.80 points to 71,904.80 at 2 pm

Libas Consumer Products has announced a new scheme at Libas stores - ‘Never before and never after’.

The stock trades at ₹18.80 on the NSE, down 0.79%.

​Sakuma Exports​ has entered into an agreement with Raigaon Sugar & Power for the production of 3 crore litres annually for ethanol and its related product for period of 3 years. 

The stock surged 8.97% on the BSE, trading at ₹22.35.

Prudent Corporate Advisory Services has received a GST order from Superintendent Officer, Division-VI, CGST & C.Ex., Mumbai East Commissionerate, Maharashtra, raising a demand along with interest and penalty.

The company’s stock trades at ₹1215.80 on the NSE, up by 1.92%.

The BSE Sensex climbed 523.89 pts or 0.73% to 71,880.49. The NSE Nifty was up 149.10 pts or 0.69% to 21,666.45.

Seacoast Shipping Services Limited’s shares were up by 9.86 per cent after the company confirmed the acquisition of the vessel MV Bharadwaj, as previously announced. The ship, currently situated at Qatar Port, is undergoing inspection and necessary procedures for a flag change, with completion expected by January 15, 2024. The company reported that the acquisition is valued at ₹51 crore and the acquisition enhances its operational capabilities.

JK Cement has received show cause notice involving ₹2,31,90,380 prior to recovery proceeding from the Office of the Deputy Commissioner of Income Tax (TDS) Kanpur, Department of Revenue, Ministry of Finance in respect of outstanding demand w/s 221(1) of the Income Tax Act, 1961 pertaining to TDS defaults reflecting against Company’s TAN Number. 

The stock rises by 1.45% on the NSE, trading at ₹3,903.

Hindustan Copper (5.16%); NMDC (2.48%); Jindal Steel (1.74%); Vedanta (1.29%)

Passenger vehicle (includes cars and SUVs) exports from India remained in the growth lane in 2023, but the total number is still far from the pre-Covid peak of 7.4 lakh units achieved in 2017.

While the final export numbers for 2023 are awaited, total PV exports from India are likely to have grown in the mid-single digits and total export volumes are estimated at 6.6-6.75 lakh units. The final number will be about 80,000 units less than that recorded in 2017.

Bajaj Finance Ltd, a leading non-banking finance company, reported a 35 per cent increase in assets under management (AUM) to ₹3.11 lakh crore in the December-ending quarter as compared to ₹2.3 lakh crore in the year-ago period, according to the business update filed with the stock exchanges.

Rama Vision has launched a New Product “Wafer Sticks” under the Brand Name “MADDOX”. 

The stock rises by 4.99% on the BSE, trading at ₹71.71.

NBCC has received work orders from Navodaya Vidyalaya Samiti, worth ₹98 crore. The stock trades at ₹87 on the NSE, down by 0.23%

Japan’s Nikkei share average fell as much as 2% on the first trading day of 2024, as airline, construction and utilities reacted to Tuesday’s aircraft collision and the powerful earthquake that hit western Japan earlier this week.

Chip-related stocks dragged the Nikkei the most on Thursday, tracking overnight weakness of U.S. technology stocks, while the main impact of the quake and collision was on shares in airline, nuclear power plant operators and construction sectors.

The Nikkei trimmed its losses to end 0.53% lower at 33,288.29. - Reuters

Major gainers of Nifty Realty stocks:

Sobha (13.12%)

Godrej Properties (8.32%)

Lodha (6.92%)

DLF (6.41%)

Brigade (6.02%)

The Federal Bank’s total deposits for December 2023 stood at ₹2,39,591 crore as against ₹2,01,408 crore in December 2022. The bank stock trades at ₹153.95 on the NSE, up by 1.45%.

SEACOAST SHIPPING SERVICES has announced strategic acquisition of M.V. BHARADWAJ and postponement of share Buyback for working capital amidst ongoing expansion.

Central Bank of India has reported its total business at ₹6,17,750 crore in December 2023, as against ₹5,53,768 crore in December 2022. Its total deposits stood at ₹3,77,684 crore in December 2023 as against ₹3,44,847 crore in December 2022. 

The stock trades at ₹52.70 on the NSE, up by 1.44%.

RTA SKDC Consultants Limited has intimated that pursuant to the NCLT order it ceased to exist as a separate entity and post-merger is known as Link Intime India Pvt Ltd.

Persistent Systems has announced a multi-year Strategic Collaboration Agreement with Amazon Web Services (AWS) to accelerate the pace of innovation and development of generative AI solutions for clients.

Persistent Systems stock trades at ₹7,259 on the NSE, down by 0.39%.

Raminfo Ltd has received an Order from the Goods and Services Tax (GST) department, Andhra Pradesh, raising demand for tax liability and interest on various GST issues with an amount totaling ₹4,58,76,000. 

The company’s stock rises by 2.35% on the NSE, trading at ₹141.80.

Major gainers on the NSE at 12:

NTPC (4.39%); Bajaj Finance (3.94%); Tata Consumers (2.83%); IndusInd (2.79%); ONGC (2.76%)

Major losers:

BPCL (-1.54%); LTIMindtree (-1.36%); Dr Reddy’s (-1.07%); HCL Tech (-1.03%); TCS (-0.91%)

Good news for flyers. After three months of levying fuel charges ranging from ₹300 to ₹1,000, IndiGo has retracted these charges. This comes after a fall in fuel costs.

“IndiGo is pleased to announce the removal of fuel charge applicable on its on domestic and international routes, effective January 04, 2024. The fuel charge had been introduced in October 2023, following a surge in Aviation Turbine Fuel (ATF) prices,” said the company.

Stocks advanced on BSE at 12 noon on January 4, 2024, were 2,638 against 1,063 stocks that declined; 132 stocks remain unchanged. Total stocks traded were 3,833. The number of stocks that recorded a 52-week high was 407, and those that hit a 52-week low was 7.

Anil Agarwal-led Vedanta, a diversified metal and energy conglomerate, has raised Rs 3,400 crore through the issue of non-convertible debentures.

The company has allotted 3.40 lakh NCDs of Rs 1 lakh each on a private placement basis.

Vedanta in a statement on Thursday said it has issued 3.40 lakh of secured, unrated, unlisted, redeemable NCDs of Rs 1 lakh face value each aggregating to ₹ 3,400 crore.

It has received confirmation from the depository for credit of NCDs on January 3, it said.

Meanwhile, the company’s UK-based parent Vedanta Resources, a UK-based firm, said it has gained the backing of its bondholders to restructure portions of its imminent debt.

The move will ease the repayment strain on the subsidiary Vedanta. The company had last year proposed a restructuring of four series of bonds maturing in 2024, 2025, and 2026 to alleviate its substantial debt liability.

With an outstanding debt of $6.4 billion including a $4.5 billion due by fiscal 2025, the firm had been endeavoring to extend the maturities of its debt and make amendments to certain bond terms and waivers. The company received approval from about 97 per cent of its bondholders across the four bond series, surpassing the mandatory threshold of 66.67 per cent according to a regulatory filing.

Aluminium prices have declined sharply this week. The Aluminium Futures contract rose to a high of ₹213.45 per kg on Tuesday and then has come down sharply from there. The contract is currently trading at ₹206 per kg. The contract has declined over 3 per cent from the high.

HEC Infra Projects board has approved appointment of Arvindkumar Patel as Chief Financial Officer. 

The stock trades at ₹82 on the NSE, down by 4.98%.

Kothari Products (19.99%)

Brooks Laboratories (19.98%)

Sobha (1379%)

Reliance Power (13.68%)

KCP (11.54%)

Hero MotoCorp’s manufacturing facility in Gurugram bagged the CII National Award for Excellence in Water Management, securing the top position in the ‘Within the Fence’ category. The company is making strides towards its goal of being 500 per cent water positive by 2025. Presently, the company is saving nearly 3.8 million kiloliters of water annually.

Blue Jet Healthcare Ltd has received approval from Maharashtra State Electricity Distribution Co. Ltd. for Permission to Commission (PTC) for synchronisation of 5.615 MW plant capacity in the 15 MW solar park at Village Bhanos Tal. Patur Dist. Akola. 

Blue Jet stock rises by 3.13% on the NSE, trading at ₹385.40.

Dr. Reddy’s Laboratories Ltd acquired MenoLabs, a women’s health and dietary supplements portfolio, from Amyris Inc. The acquisition, completed within Amyris’ sales process, includes seven branded products tailored for perimenopause and menopause symptoms — MenoFit, MenoGlow, Happy Fiber, Well Rested, Athena’s Shield, Goodness Glow, and Keep Glowing Gorgeous.

Zomato Vietnam Company Ltd, step down subsidiary of Zomato Limited, situated in Vietnam has initiated the process of liquidation. Zomato stock down by 0.12% on the NSE, trading at ₹127.40.

The Indian alcobev industry experienced strong growth in 2023, which has been attributed to a substantial surge in alcohol consumption across the country. However, this expansion occurred amidst regulatory strictness and persistently high input price inflation. In the single malt category, Indri received prestigious accolades, further solidifying the nation’s position in the global spirits market.

The board of Nippon Life India Asset Management has announced appointment of Amol Bilagi (presently designated as National Lead-Finance & Accounts & who has now been with the Company for last almost 10 years), as the ‘Interim-Chief Financial Officer’ of the Company with an immediate effect (i.e. January 4, 2024). This follows the resignation of Prateek Jain, Chief Financial Officer. 

The stock rises by 1.98% on the NSE, trading at ₹469.20.

Gold prices steadied on Wednesday as investors looked out for more U.S. jobs data to gauge the Federal Reserve’s next steps on its monetary policy, although higher U.S. bond yields kept a lid on bullion’s upside.

Spot gold was up 0.1% at $2,043.72 per ounce, as of 0434 GMT, after hitting its lowest since Dec. 21 on Wednesday. U.S. gold futures rose 0.4% to $2,051.10 per ounce. - Reuters

Bank Nifty index is trading higher today. The bounce from the low of 47,481 made on Wednesday is getting a good follow-through rise today. The index is currently trading at 47,960, up 0.54 per cent. 

Nifty 50 is attempting to recover after having fallen over the last couple of days. The index fell to test 21,500 on Wednesday in line with our expectation. It opened with a gap-up today and is currently trading at 21,604, up 0.4 per cent.

Daily Dossier from ICRA Analytics:

Indian equity markets fell for the second consecutive day amid rising geopolitical tensions. Weak global cues along with contraction in Chinese and Eurozone manufacturing data, raised more doubts about a global economic recovery in 2024. The expectation that the U.S. central bank would cut interest rates was tempered by the rebound of U.S. Treasury yields and the rise in the dollar index. Market participants awaited for the U.S. Fed minutes for further cues. Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.75% and 0.69% to close at 71,356.60 and 21,517.35 respectively.

Tata Tele Business Services (TTBS) has enhanced Smartflo UCaaS (Unified Communication as a Service), a voice solution integrated with Microsoft Teams, by adding support for the Operator Connect platform for Microsoft Teams Phone. Operator Connect takes Smartflo UCaaS to the next level, empowering customers to seamlessly connect their telephone numbers on the Public Switched Telephone Network (PSTN) with Teams, revolutionizing the unified communication experience for businesses. 

Tata Tele stock rose 2.70% on the NSE, trading at ₹93.15.

Poonawalla Fincorp Ltd’s update for the quarter ended December 2023:

1. Disbursements: Total disbursements during Q3FY24 were the highest ever at approximately ₹ 8,730 crore up 159% YoY and 12% QoQ compared to disbursements of ₹ 3,369 crore in Q3FY23 and ₹ 7,807 crore in Q2FY24.

2. Assets Under Management (AUM): AUM grew by 57% YoY and 8% QoQ to approximately ₹ 21,850 crore as on 31st December 2023.

3. Asset quality: GNPA and NNPA are expected to improve further. As guided, we would strive to maintain the NNPA below 1% in line with the Management Vision 2025.

4. Liquidity: The Company continues to have ample liquidity of approximately ₹2,875 crore as on 31st December 2023. The above information is provisional and subject to review by the statutory auditors of the Company.

The company’s stock rose 1.79% to ₹438.50 on the BSE.

Suzuki Motor Gujarat Private Limited, a wholly owned subsidiary of Maruti Suzuki India Limited, has received a Show Cause Notice from office of the Principal Commissioner of Customs. Maruti Suzuki stock trades at ₹10,005 on the NSE, down by 0.72%.

Test preparation startup Unacademy said its losses narrowed to ₹1,678 crore in FY23 as compared to ₹1,678.15 crore for FY22, while revenue rose 26 per cent during the year to ₹907 crore from ₹719 crore in FY22, as per regulatory filings sourced by PrivateCircle.

Crude oil futures traded higher on Thursday morning as fears over supply disruptions increased following protests in Libya.

At 9.53 am on Thursday, March Brent oil futures were at $78.59, up by 0.43 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $73.16, up by 0.63 per cent.

Equity markets opened in green on Thursday. The NSE Nifty was up by 0.42 per cent or 90.50 points to 21,609.20, while the BSE Sensex was up by 0.46 per cent or 326.25 points to 71,672.51 at 10 am.

A total of 2,233 stocks were traded on the BSE, of which, 2,393 advanced, 729 declined and 111 stocks remained unchanged. As many as 269 stocks hit 52 week high and 5 stocks hit 52 week low. 

Raymond Lifestyle Limited, a wholly-owned subsidiary of Raymond Limited, has incorporated a wholly owned subsidiary company by the name ‘Ten X Realty West Limited’ to undertake redevelopment project. Raymond stock inches up by 0.55% on the NSE, trading at ₹1,718.

A private gauge of China’s services activity climbed to the highest in five months, potentially easing some concern about the economy.

The Caixin services purchasing managers’ index rose to 52.9 last month from 51.5 in November, Caixin and S&P Global said in a statement Thursday. That compares to the consensus estimate among economists of 51.6. A reading over 50 indicates expansion from the prior month.

The demand notice follows close on the heels of demand notices for Rs 116 crore for Telangana state, and Rs 806 crore for Maharashtra

Glenmark had launched a biosimilar anti‐diabetic drug, Liraglutide. The drug is being marketed under the brand name Lirafit following the approval from the Drug Controller General of India (DCGI). Priced at around ₹100 for a standard dose of 1.2 mg (per day), this will lower the cost of therapy by approximately 70% and will be available only under prescription.

Glenmark stock trades at ₹895.50 on the NSE, down by 0.27%.

Angel One: Company Reports 53.6% MOM and 221.5% YOY Growth, Reaching 1.05M Gross Client Acquisition

Angel One: December Sees 75.1% YoY Increase in Average Daily Orders, Overall ADTO Up by 156.2%

Angel One: Client Base Up 5.4% MOM and 55.5% YOY, Reaches 19.45M in December 2023

Intermittent buying attempts were visible throughout the day, but they weakened in the second half, ending up with a close near 21500. The day thus having played out in line with our expectations of bearish bias persisting as long as below 21693 region, we find no reason to take our eyes off the 21420/370 objectives set at the start of the week. However, the 12d EMA at 21485 does present Nifty with an opportunity to swing higher, prompting us to shift the upside marker to 21580, in which case, short covering may be attempted.

The US market fell overnight to extend declines from the previous session as the latest Fed meeting minutes shed little light on when rate cuts might begin. US job openings eased in November to the lowest level since early 2021. Fewer workers voluntarily quit their positions, and the number of hires fell, adding to evidence of cooling labour demand. Meantime, the ISM’s US manufacturing gauge remained stuck in contraction territory for the 14th month at the end of 2023, restrained by weaker orders. Asian markets followed Wall Street lower this morning after the Fed signalled prolonger higher interest rates. The Indian market may open on a cautious note Thursday in the wake of weak global cues and a sharp overnight rebound in oil prices after four consecutive sessions of losses. With festival demand waning, the manufacturing sector slowed down in December, Purchasing Managers’ Index (PMI) dropping to an 18-month low of 54.9 in December as against 56 in November. However, the sector is still in expansion mode.

The 50 index witnessed a flattish opening, however, it succumbed to selling pressure immediately and continued its downward trajectory throughout the trading session. This was the second straight session of selling and with this the index added another distribution day in succession. Going forward, the index is anticipated to attract bullish strength on reclaiming the pivotal resistance near 21590. 

Supp: 21500-21440-21360

Res: 21680-21720-21800

Major gainers on the NSE at 9:30 am:

Bajaj Finance (4.33%); NTPC (2.92%); Bajaj Finserv (2.23%); Tata Consumers (1.80%); Tata Motors (1.72%)

Major losers:

BPCL(-1.66%); Bajaj Auto (-0.67%); Dr Reddy’s Lab (-0.52%); Eicher Motors (-0.43%); Tata Steel (-0.41%)

L&T has completed the sale of its entire stake in L&T Infrastructure Engineering Limited to STUP Consultants Pvt Ltd.

Torrent Pharma has entered into a Memorandum of Understanding (MoU) of ₹47,350 crore with Department of Energy & Petrochemicals, Government of Gujarat, as part of Investment Promotion Activity for Vibrant Gujarat Global Summit 2024 for establishment of 3,450 MW of Solar Power Projects, 1,045 of Hybrid Power Projects, associated infrastructure for 7,000 MW Solar project, Green Hydrogen / Green Ammonia Production Facility and Capex for Distribution network.

In 2023 office absorption came near an all-time high at 59.6 million square feet, while residential sales at 3.3 lakh units set a new 10-year record, according to a report by Knight Frank India.

Crude oil futures traded higher on Thursday morning as the fears over the supply disruptions increased following protests in Libya. At 9.21 am on Thursday, March Brent oil futures were at $78.49, up by 0.31 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $73.05, up by 0.48 per cent. January crude oil futures were trading at ₹6095 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6071, up by 0.40 per cent; and February futures were trading at ₹6127 as against the previous close of ₹6105, up by 0.36 per cent.

The Indian benchmark indices, Sensex and Nifty, commenced Thursday’s session with a positive bias despite varied global cues. The 30-share BSE Sensex surged by 261.83 points to 71,618.43 in early trade, while the NSE Nifty saw an increase of 55.10 points, reaching 21,572.45. 

Asian stocks are in red in early Thursday deals, signalling domestic markets may remain under pressure. Market experts believe the correction phase will continue in domestic markets due to institutions’ lack of follow-up buying. On Wednesday, both FPIs and domestic institutions remained sellers.

According to analysts, the market currently lacks fresh triggers to go up, so investors resort to profit-taking, which is good for overall market sentiment. The focus now shifts to the upcoming result season, said experts.

In a market outlook for 2024, SBI Funds Management said, putting behind the tepid growth seen in Nifty earnings in the pre-Covid period, FY23 saw an 11.5 per cent earnings growth (adjusted for one time) and the expectation for FY 24 and FY25 remains very strong. At the beginning of FY23, earnings growth was expected at 11.9 per cent and has subsequently improved to 14.5 per cent. The 3-year CAGR between FY22 and FY25 stands at 15 per cent, underscoring the strong underlying growth momentum. The note from the fund house said that H1-FY24 had a very strong YoY growth of 27.5 per cent in Nifty earnings.

Growth in the consumer-facing names has been very strong as margins have been robust on the back of lower input costs and good pricing power. IT earnings have been weak on the back of poor demand conditions. The materials sector has seen price corrections, which has impacted earnings. The strong H1 performance implies a modest required run rate of around 12 per cent in the second half to maintain current FY24 growth expectations.

“Expectations are strong in sectors like Consumer Discretionary (primarily Auto), Healthcare and Materials,” SBI Funds Management said.

According to Ajit Mishra, SVP - Technical Research, Religare Broking, it is a healthy correction so far despite the underperformance of two key sectors, viz. banking & IT, and participants should focus largely on buying opportunities on dips till Nifty holds the 21,200 level. “Defensive viz. pharma and FMCG are attracting noticeable interest on the expected lines while others are contributing on a rotational basis. Traders should align their positions accordingly but refrain from aggressive longs,” he added.

The Reserve Bank of India wants issuers of Commercial Papers (CPs) and Non-Convertible Debentures (NCDs) to disclose information on any payment default through various channels, including publicly disseminating such information through their websites.

These requirements form part of the revised Master Direction on CPs and NCDs of original or initial maturity up to one year, and are aimed at improving the transparency and safety of money markets.

Jio Financial Services and BlackRock Management have filed papers for their mutual fund joint venture with the Securities and Exchange Board of India (SEBI).

SEBI’s website showed that the application was filed on October 19, 2023 and is currently under consideration for the regulator’s “in-principle approval” as of December 31, 2023.

Malaysian palm oil futures rose on Thursday after a four-session losing streak, underpinned by robust demand from key buyer India and higher crude oil prices. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit, or 0.6%, to 3,644 ringgit ($785.34) a metric ton in morning trade.

FUNDAMENTALS 

India’s palm oil imports rose in December to their highest in four months as purchases of refined palmolein surged because of competitive prices, five dealers told Reuters on Wednesday. 

Oil prices rose in early trade on Thursday, extending the previous day’s sharp gains on concerns about Middle Eastern supply following disruptions at a field in Libya and heightened tension around the Israel-Gaza war. 

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. - Reuters

Ex - Stock Split 05 January 2023 (Tomorrow)

Last day trade for before split Today

Nestle India Ltd.

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

Previous day Closing Price – Rs. 26640.35

Pearl Global Industries Limited

Stock Split Rs.10/- to Rs.5/-

Previous day Closing Price – Rs. 1376.1

AU Small Finance Bank continues to execute its strategy of building a sustainable, secured and retail franchise as Q3’FY24 saw strong delivery on all parameters including deposit mobilisation and credit growth.The macro environment during Q3’FY24 continued to warrant caution and prudence amidst tight liquidity, higher interest rate and persistent competitive landscape for deposits. 

Deposit franchise continued to expand with both Urban branch banking group and Swadesh banking group executing on their plans, resulting in overall deposits crossing ₹ 80,000 Crore mark with a healthy growth of 6% QoQ and 31% YoY. CASA deposits continued to consolidate with incremental CASA growth of 3% QoQ and 13% YoY.

Advances growth remained strong with disbursement sustaining across both Retail assets group and Commercial banking group. Asset quality continues to follow the seasonal trend and remains within the range.

The rally in Indian equities in 2023 was a good opportunity taken by venture funds and private equity firms to make profitable exits and according to Nuvama Research, PE exits worth ₹97,500 crore were seen during the year. In 2022, PE exits worth ₹91,700 crore were recorded.

There were 78 companies in which PE firms sold stakes in 2023 and the most high profile and largest of these were Paytm, Coforge, Mankind Pharma, Axis Bank and Sona BLW.

Macrotech Developers hass executed agreements for acquisition of 100 per cent equity stake in Goel Ganga Ventures India Pvt Ltd, pursuant to which GGVIPL will become a wholly owned subsidiary of the Company. Lodha stock surges by 4.21% on the NSE, trading at ₹1,046.35.

The transition to new software by the country’s largest commodity exchange MCX and a one-year extension of the ban on derivatives trading in seven key agriculture commodities are the key events in 2023 that will long be remembered by market participants.

After many failed attempts, MCX last month managed to switch over to a new software developed by Tata Consultancy Services from the one developed by 63 Moons Technologies).

Samor Reality has received the Final approval from BSE regarding Migration of Equity Shares of the Company from BSE SME Platform to the Main Board.

FUTURES DATA

Net long at 66% from 68%

Net short at 34% from 32%

FIIs options data Which is Positive

⭐️Overall Fiis activity is Positive

🙁 DIIS Net Sellers 

🙁 FIIS Net Sellers 

Price band revised from 20% to 10%: Sun Pharma Advanced Research. 

Moved into a short-term ASM framework: Sun Pharma Advanced Research.

Sterling and Wilson Renewable Energy: Promoter Shapoorji Pallonji and Company created a pledge for 6.16 lakh shares on Dec. 29.

Info Edge: Promoter group Endeavour Holding Trust sold 32,000 shares on Dec. 29. 

Cupid: Minerva Ventures Fund bought 0.75 lakh shares (0.56%) at Rs 1,193.15 apiece. 

Adani Ports and Special Economic Zone: The company approved raising Rs 5,000 crore via non-convertible debentures. The company also approved the redesignation of Gautam Adani as executive chairman, the re-designation of Karan Adani as managing director, and the appointment of Ashwani Gupta as CEO, effective from Jan. 4.

* Religare Enterprises:* The Burman family has called for a probe into the allotment of shares of Religare Finvest to Rashmi Saluja through employee stock ownership plans.

* Power Finance Corp:* The company signed a MoU with the Gujarat Government for projects worth Rs 25,000 crore.

* Vedanta:* The company recorded aluminium output at 599 KT, up 6% YoY, refined zinc output at

203 KT, down 4% YoY, and oil & gas average gross operated output at 1,23,413 boe/day, down 15% YoY. It also raised Rs 3,400 crores via the private placement of NCDs. Vedanta Resources has received support from bondholders for its proposal to restructure four series of bonds.

* Telecom Companies:* Bharti Airtel’s net subscriber additions dropped in October to 3.52 lakh.

Reliance Jio added 31.59 lakh wireless subscribers, while Vodafone Idea lost 20.44 lakh wireless subscribers.

* Life Insurance Corp:* The company received tax and penalty demands worth Rs 667.5 crore from Tamil Nadu, Uttarakhand and Gujarat tax authorities.

* Maruti Suzuki India:* The company’s unit received an adjudication order from the Gujarat GST

Authority upholding the Rs 174 crore GST demand. The unit will be filing an appeal against the order with the first appellate authority.

* IndusInd Bank:* The private lender recorded deposits at Rs 3.68 lakh crore as of Dec. 31, up 13% YoY, and net advances at Rs 3.26 lakh crore, up 20% YoY. The bank’s CASA ratio stood at 38.5% vs. 42% YoY.

* Steel Authority of India:* The government decided to scrap the privatisation of the company’s Salem Steel Plant in Tamil Nadu.

* Bank of Baroda:* The lender signed an accord with REC to fund power and infrastructure projects.

* Grasim Industries:* The company’s Canada joint venture stops pulp production, citing market conditions.

* KPI Green Energy:* The company, along with its unit KPIG Energia, under the captive power producer segment, received new orders of 2.10 MW for executing solar power projects from Radhey Krishna Terene and Jay Metal Tech.

* LTIMindtree:* The company received a Rs 206 crore tax demand from Mumbai tax authorities.

* MRF:* The company will buy a 27.2% stake in First Energy 8 for Rs 35.8 crore to enhance its source of renewable power supply.

* Zomato:* The company’s Poland unit, Gastronauci SP. Z.O.O., initiated the process of liquidation on Jan. 2, 2024.

* BGR Energy Systems:* SBI has classified its Rs 2,060-crore credit exposure to the company as sub-standard.

* Ujjivan Small Finance Bank:* The company recorded total deposits of Rs 29,869 crore, up 29% YoY, and disbursements of Rs 5,675 crore, up 17% YoY. The bank’s CASA ratio stood at 25.3% VS. 26.2% YoY.

* NHPC:* The company signed a MoU with Gujarat Power Corp. for investing Rs 4,000 crore in the 750 MW Kuppa Pumped Storage Project.

Ajmera Realty and Infra India: The Ministry of Corporate Affairs approved the incorporation of a wholly owned subsidiary in the name of New Horizon Acres.

Torrent Power: The company signed four Memorandums of Understanding worth Rs 47,350 crore with the Gujarat government.

* Vikas Lifecare:* The company expanded its operations with the acquisition of 1,800 sq. metres of new land in Rajasthan.

Chambal Fertilizer: The company will consider a share buyback on Jan. 8.

* Indian Energy Exchange:* The company recorded 03 overall volume at 28,326 MU, up 16.9% YOY, and December overall volume at 9,707 MU, up 14.9% YoY. The company’s December total electricity volume was 8,655 MU, up 8.7% YoY.

* Surya Roshini:* The company received an order worth Rs 72 crore from the Odisha Urban Infrastructure Development Fund for the project and maintenance of the LED Street Lighting project in 16 urban local bodies.

JP Morgan on Tata Motors: Upgrade to Overweight on Company, raise target price at Rs 925/sh 

JP Morgan on Infosys: Upgrade to Overweight on Company, raise target price at Rs 1800/sh 

JP Morgan on LTTS: Upgrade to Overweight on Company, raise target price at Rs 5800/sh 

JP Morgan on TCS: Upgrade to Neutral on Company, raise target price at Rs 3700/sh 

JP Morgan on HCL Tech: Upgrade to Neutral on Company, raise target price at Rs 1520/sh 

JP Morgan on Persistent: Upgrade to Neutral on Company, raise target price at Rs 7000/sh 

JP Morgan on MPhasis: Upgrade to Neutral on Company, raise target price at Rs 2700/sh 

Nomura on Larsen: Maintain Buy on Company, raise target price at Rs 4000/sh 

HSBC on Adani Ports: Maintain Buy on Company, raise target price at Rs 1250/sh 

MS on Bajaj Finance: Maintain Overweight on Company, target price at Rs 10000/sh 

MS on Indian Hotels: Maintain Overweight on Company, raise target price at Rs 490/sh 

MS on Delhivery: Maintain Overweight on Company, raise target price at Rs 455/sh 

MS on Indusind Bank: Maintain Overweight on Company, target price at Rs 1850/sh 

Jefferies on Indusind Bank: Maintain Buy on Company, target price at Rs 2070/sh 

MS on Sobha: Maintain Overweight on Company, target price at Rs 1400/sh 

Citi on MGL: Maintain Buy on Company, raise target price at Rs 1390/sh 

Citi on IGL: Maintain Buy on Company, raise target price at Rs 510/sh 

Citi on Indusind Bank: Maintain Buy on Company, target price at Rs 1630/sh 

JP Morgan on Wipro: Maintain Underweight on Company, raise target price at Rs 420/sh 

JP Morgan on Tech Mahindra: Maintain Underweight on Company, raise target price at Rs 1150/sh 

JP Morgan on LTIM: Maintain Underweight on Company, raise target price at Rs 5500/sh 

Subsequent to discontinuing its painful “focused-defocused segments” strategy, L&T Finance Holdings is on the brink of completing the successful execution of its ‘Lakshya 2026’ led retailisation plan. Now, its retail assets comprising of over 90 per cent of the loan book, its sustainable moats in Rural, 2W and Farm Equipment segments, and a strong balance sheet with material macro-prudential provisions and a prudent asset valuations buffer give enough comfort on sustained profitable growth.

The stock continues to outperform on the back of sustained improvement return ratio profile aided by strong asset quality trends. Strong sector tailwinds are supporting overall performance. RoA in H2FY2024 is expected to reach about 1 per cent and is likely to sustain in the near to medium term.

The bank has been highlighting that the quality of loans sanctioned/disbursed in post-Covid times is far superior with very low delinquency. Thus, lower slippages trend is likely to sustain and narrow the perceived gap in underwriting with respect to peers.

Market watchers said that punters had taken positions ahead of the ruling expecting a favourable judgement and during the actual court proceedings there was some bit of profit taking

Kaveri Seeds board meeting on January 5 

Bajaj Auto: January 8 

Chambal Fertilisers: January 8

At least 73 per cent of Chief Information Officers (CIO) foresee an increase in their IT budgets for 2024, while 15 per cent expect no change, and 12 per cent predict a reduction, signaling an investment trend in the tech sector for the upcoming year, according to investment platform Recognizes’ CIO survey.

With rural demand continuing to lag behind urban demand trends, volume growth of FMCG companies are expected to be impacted in terms of earnings in the December quarter. While retail sector saw divergent demand trends across categories, at the same time quick-service restaurants sector faced uncertain demand environment despite the festival push during the third quarter in this fiscal, analysts noted.

Thanks to the sharp rally and robust new listings, the market capitalisation of BSE SME and NSE Emerge listed companies have crossed ₹2-lakh crore for the first time last year and the momentum is expected to continue this year with a long list of initial public offerings (IPOs) waiting to hit the market.

The market-cap of 474 companies listed on BSE SME jumped to ₹1.10-lakh crore on Wednesday against ₹75,000 crore logged in July last year.

The Food Ministry is banking on the feedback of the Agriculture Ministry that is optimistic of a record wheat production this year to replenish its official reserves. Known as buffer stocks, official reserves will likely be the lowest in the last 16 years but around the mandatory buffer norm as of April 1.

Vedanta aluminium production increased 6 per cent to 5.99 lakh tonne in the December quarter against 5.66 lakh tonne in the same period last year.

Alumina production at Lanjigarh refinery up 6 per cent y-o-y to 4.70 lakh tonne.

In the second quarter ended September 30, BoM reported a 16.58 per cent year-on-year increase in home loans to ₹26,686 crore.

2023 was a stellar year for Indian movie industry. The Indian box office smashed records, soaring past pre-pandemic levels to reach a whopping ₹12,000 crore. Shah Rukh Khan and Sunny Deol dominated with mega-hits, while regional languages like Telugu and Tamil shined with blockbusters like Salaar, Leo and Jailer. 2024 promises even more excitement with big-ticket releases like Singham Again and Pushpa-2.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS, and SBI

Fed policymakers viewed the policy rate as near its peak for this tightening cycle, though they noted that the actual policy path will depend on how the economy evolves, minutes from the last FOMC meeting showed. Almost all participants indicated that reflecting the improvements in the inflation outlook, a lower target range for the funds rate would be appropriate by the end of 2024.

FIIS F & O : RS. CRS. : 

TOTAL NET SELL : -83190 😭😭

INDEX FUT. : -618 

INDEX OPT. : -79382

STOCK FUT. : -2832

STOCK OPT. : -382

🔹SEC. IN F&O BAN FOR, 04-JAN-24 :

\u0009

1.\u0009BALRAMCHIN 2.\u0009DELTACORP 3. HINDCOPPER 4. IEX 5.\u0009NATIONALUM 6.\u0009SAIL 7. \u0009ZEEL

ADDITION : NATIONALUM

DELETION : NIL

🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 03-JAN-2024 : 

FIIS : SELL -666 (9,103-9,769) 😩

DIIS : SELL -863 (10,402-11,265) 😩

BSE SENSEX : -536 (71,356)🔽 

NSE NIFTY : -148 (21,517)🔽

BSE MIDCAP. : +74 (37,081)🔼

BSE SMLCAP. : +129 (43,103)🔼

B. CRUDE : $ 76.52 🔽 🙂

GOLD: $ 2,036=INR 64,000(10gr)🔽😥

SILVER : RS. 78,900 (kg)(5pm)🔽☺️ 

FOREX : RS. $ 83.28 🔼 🙂

7.18%NEW ‘33: 7.2156%(99.7450)🔼☺️

7.18%GOI ‘37: 7.3411% (98.6250)🔼☺️

Buzzing Stocks: LIC, Vedanta, Religare, NHPC, BASF India, Airan, Bajaj Finance, IndusInd Bank, Ujjivan SFB, Bharat Forge, SAIL, L&T, Torrent Power, BGR Energy

Robust Q3 on the cards for Indigo, supported by better load factors and strong yields. We estimate yields to jump up 15% QoQ to Rs5.1, besides a 9% hike in fuel cost/ASK, driven by rise in ATF prices. PLFs would also be seasonally strong, at ~87%, as ASK/RPK rise 25%/28% YoY (a 2%/6% QoQ rise) to 36.0/31.3bn. We estimate PBT/ASK to come in at Rs0.44, with net income at Rs15.8bn, for Q3FY24 (up 12% YoY)

OMCs’ earnings to decline due to lower GRMs & marketing margins, inventory losses, but should be in the black. Diesel marketing margins fell to negative ~Rs0.5/ltr, while petrol margins improved 20% to Rs6.8/ltr in Q3FY24. LPG margins also turned negative, at ~Rs60/cyl. Brent averaged at ~USD84/bbl in Q3FY24, down 3% QoQ, closing ~USD19/bbl lower at ~USD78/bbl between the two quarter ends, thereby resulting in refining inventory losses of USD2.5-3/bbl for OMCs. Benchmark GRMs also slumped, to USD5-6/bbl from USD9-10/bbl QoQ, due to a correction in distillate spreads. Russian crude discounts shrank, while Middle-East OSPs were slightly higher. We expect OMCs to record 70-80% decline in EBITDA QoQ. Q3FY24E PAT for IOCL is estimated at Rs26bn, while BPCL/HPCL would see PAT of Rs6/2bn, respectively

GMBREW

TENT EURO Germany Prelim CPI m/m (Expected: 0.2% versus Previous: -0.4%)

18.45 U.S. ADP Non-Farm Employment Change (Expected: 100K versus Previous: 103K) 

19.00 U.S. Unemployment Claims (Expected: 210K versus Previous: 218K)

20.30 U.S. Service PMI (Expected: 51.3 versus Previous: 51.3)

Walgreens Boots Alliance, Inc. (Pre market) (Sector- Healthcare)

Lamb Weston Holdings, Inc. (Pre market) (Sector- FMCG)

RPM International Inc. (Pre market) (Sector- Chemical)

ConAgra Brands, Inc. (Pre market) (Sector- FMCG)

Aegon Ltd. (TENT) (Sector- Financial)

(SOBHA IN, Mkt Cap USD1.3b, CMP INR1120, TARGET INR1400, 25% Upside, Buy)

Targeting sustainable growth with healthy cash flows and profitability

After underperforming its listed peers on pre-sales growth over FY21-23, we believe SOBHA is set to outperform in terms of growth given its focus on unlocking its vast land reserve and exploring external growth opportunities through its healthy balance sheet. The outperformance is also expected to be driven by improvements in profitability. Further, visibility in the monetization of some of its large land parcels in Bengaluru will lead to a re-rating in its implied land valuation. SOBHA is our top idea for CY24 with a revised TP to INR1,400, 25% upside potential.

Key risks to our target price include (a) slowdown in residential absorption, (b) delay in monetization of large land parcels, and (c) inability to sign BD deals

1. BALRAMCHIN

2. DELTACORP

3. HINDCOPPER

4. IEX

5. NATIONALUM

6. SAIL

7. ZEEL

Addition: NATIONALUM

The short-term outlook is bullish for NCC. The stock had risen 2 per cent on Wednesday. Immediate support is at ₹167. Below that ₹160-158 will be a lower but very strong support zone. The price action over the last week indicates that the stock can sustain very well above ₹167 itself. 

MRF will buy a 27.2 per cent stake in First Energy 8 for ₹35.8 crore to enhance its source of renewable power supply.

Maruti Suzuki India said that the company’s unit has received an adjudication order from the Gujarat GST Authority upholding the ₹174 crore GST demand. The company said that the unit will soon be filing an appeal against the order with appellate authority.

Total volumes at 9,707 MU, up 14.9% YoY

Electricity volumes at 8,655 MU, up 8.7% YoY

Market clearing price at Rs 4.54/unit, down 13% YoY

Real-time electricity market volume at 2,405 MU, Up 36.4% YoY

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -666.34

(9103.00 - 9769.34) 

DII: NET SELL: -862.98

(10402.57 - 11265.55)

https://play.google.com/store/apps/details?id=com.intelegain.rb

Anand Rathi Wealth: Feroze Azeez, CEO

Have Equity Exposure Of ~60% and Don’t Quit Small Caps Is A Word Of Advice: Feroze Azeez

https://www.youtube.com/watch?v=SekgPXg1J2c

CSB Bank: Pralay Mondal, MD & CEO

CSB Bank Q3: Asset Quality, Profitability Check | Pralay Mondal Eplains

https://www.youtube.com/watch?v=Iy74M43FfNQ

Hi Tech Pipes Limited: Anish Bansal, CFO

Hi Tech Pipes Ltd Q3 Operational Update; Steady Sales Volume | Anish Bansal

https://www.youtube.com/watch?v=K4ce0rjriXs

IIFL Securities: Sanjiv Bhasin, Director

Sanjiv Bhasin’s Market Insights & Stock Advice | Tracking trends With Nikunj Dalmia

https://www.youtube.com/watch?v=uZZDar1VSGk

Paras Defense: Amit Mahajan, Director of Technical & R&D

Paras Defence’s FY24 Revenue Target On Track? | Amit N Mahajan Explains

https://www.youtube.com/watch?v=3Kzm2Ym8C7k

Arihant Capital: Mileen Vasudeo, Sr Research Analyst

Views On Market And Stock Picks By Mileen Vasudeo Of Arihant Capital Markets

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

Maruti Suzuki: Shashank Srivastava, Chief General Manager - Marketing

Shashank Srivastava Of Maruti Suzuki On Auto Sales, Inventory And 2024 Outlook

https://www.youtube.com/watch?v=V73-oG-QGE0

Royal OrchHotel: CK Baljee, CMD

Royal Orchid: Growth Drivers For FY25 | Chender Baljee

https://www.youtube.com/watch?v=7xfF_UAnO9w

Rushil Decor: Rushil Thakkar, ED

Rushil Decor Receives BIS Certification; Biz Stability Strategies | Rushil Thakkar

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

Medplus Health: G Madhukar Reddy, MD CEO

Implementing Better Control, IT Systems In Stores To Ensure Better Compliance: Medplus

https://www.youtube.com/watch?v=BeP3UUmFX98

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

Asian markets started with declines after US stocks slumped post the Federal Reserve meeting minutes signaling prolonged higher interest rates. Japan’s Nikkei dropped by 1.59% to 32,931.96, with the Topix down by 0.36% at 2,357.97. South Korea’s KOSPI fell by 0.45% to 2,595.69, while Australian shares decreased by 0.39% to 7,493.80. In contrast, Hong Kong’s Hang Seng index gained 0.16% at 16,673.40.

The Fed’s December meeting revealed rising confidence in controlling inflation but didn’t offer specifics on potential interest rate adjustments. On the prior day, the S&P 500 closed down by 0.8%, Nasdaq Composite by 1.18%, and Dow Jones Industrial Average by 0.76%. 

U.S. stock indexes ended the second session of the year down again in extended profit-taking on Wednesday after a strong finish to 2023, with minutes from the Federal Reserve’s December meeting failing to shake off the funk hanging over markets. 

It was the first time the benchmark S&P 500 index has started the year with two straight declines since it kicked off 2015 with a three-session skid. It is also its worst two-day result, on a percentage basis, since late-October.

The decline contrasts with the blistering run for all three major Wall Street benchmarks in the final two months of the year. The S&P 500 came within striking distance of its all-time closing high last week as signs of cooling inflation spurred investors to bet on an aggressive rate-cutting schedule.

However, investors have been cautious so far in 2024, wary of the U.S. central bank’s expected pivot to rate cuts this year and how quickly these might be implemented. While the Fed is widely expected to keep rates on hold in January, traders have priced in a 67% chance of a 25 basis point rate cut in March, as per CMEGroup’s FedWatch tool.

The Fed minutes released on Wednesday offered new insight, with policymakers appearing increasingly convinced that inflation was coming under control, with “upside risks” diminished and growing concern about the damage that “overly restrictive” monetary policy might do to the economy.

Little light was shed on when rate cuts might commence though.

The S&P 500 lost 38.02 points, or 0.8%, to end at 4,704.81 points, while the Nasdaq Composite lost 173.73 points, or 1.18%, to 14,592.21. The Dow Jones Industrial Average fell 284.85 points, or 0.76%, to 37,430.19. - Reuters