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PremiumSensex Today | Share Market Updates: India's benchmark indexes fell on Tuesday, dragged by auto, financials, and information technology stocks as selling pressure emerged near record high levels.
At close, the Sensex was down 379.46 points at 71,892.48, and the Nifty fell 76.10 points to 21,665.80. About 1,691 shares advanced, 1,631 declined, and 72 were unchanged.
Chinese stocks recorded their worst start to a year since 2019, as weak manufacturing and home sales data reinforced investor concerns about the economic outlook.
The CSI 300 Index ended 1.3% lower on Tuesday to halt a three-day gain while the Hang Seng China Enterprises Index declined 1.7%. It was the worst first trading day of the year since 2019 for both gauges. Markets in Hong Kong and the mainland were shut on Monday for the new year holiday.
Signs of exhaustion emerged after an over $8 trillion surge in the S&P 500 last year, with the gauge still notching its ninth straight week of gains. Traders have looked past Federal Reserve uncertainty, recession angst and geopolitical risks. And many who came into 2023 dreading all that have ended up scrambling to chase the rally.
Meanwhile, oil rose after Iran dispatched a warship to the Red Sea in response to the destruction of three Houthi boats by the US Navy over the weekend, a move that risks ratcheting up tensions and complicating Washington’s goal of securing a waterway that’s vital to global trade.
India's benchmark indexes ended lower on Tuesday, dragged by auto, financials, and information technology stocks as selling pressure emerged near record high levels.
At close, the Sensex was down 379.46 points at 71,892.48, and the Nifty fell 76.10 points to 21,665.80. About 1,691 shares advanced, 1,631 declined, and 72 were unchanged.
Chinese stocks recorded their worst start to a year since 2019, as weak manufacturing and home sales data reinforced investor concerns about the economic outlook.
Europe's benchmark stock index, however, hit a near two-year high on Tuesday with energy and banks stocks leading the charge, as investors entered 2024 with undeterred hopes that major central banks might finally deliver interest rate cuts.
The pan-European STOXX 600 was up 0.4%, hitting a 23-month high, after a long weekend for New Year Day holiday.
Back home, IT stocks lost 1.16%, while financials shed 0.52%. The two sub-indexes, accounting for 49% of the Nifty, had risen about 16% and 12%, respectively, in the final two months of 2023.
Auto stocks dropped 1.37% and was the top sectoral loser. Pharma index rose 2.46%, hitting a new record high.
On the Nifty, Eicher Motors, M&M, UltraTech Cement, L&T and Kotak Mahindra Bank were the worst hit, while Coal India, Adani Ports, Sun Pharma, Divis Labs and Cipla were the top gainers.
Coal India Ltd has kicked off 2024 with a bang. Shares of the mining major hit a new 52-week high for the second consecutive day on Tuesday. Fuelling the optimism is the company’s coal production and offtake numbers for April-December released late Monday. Production rose 11% year-on-year to 531.9 million tonnes (mt) during the period, while offtake was up 9% at 552 mt. This drove CIL’s stock to a fresh 52-week high of ₹394.65 apiece.
The stock has taken support near 2350 levels which has formed a good base and has picked up momentum to improve the bias. The RSI indicator has also indicated a trend reversal from the oversold zone and is going strong. With the chart looking attractive, we suggest to buy and accumulate this stock for an upside target of 2800 levels keeping the stop loss of 2350.
The Indian rupee is likely to appreciate to 81 against the US dollar over the next 12 months amid expectations of heavy foreign capital inflows, Reuters reported on Tuesday, citing a note from Goldman Sachs.
Still, the currency will underperform its Asian peers as the Reserve Bank of India (RBI) could continue to accumulate inflows and build forex reserves "at every opportunity," economist Santanu Sengupta said.
Equity portfolio flows into India will be "robust" as the Federal Reserve starts its interest rate easing cycle in 2024, while debt inflows will be strong following India's inclusion in the JPMorgan's global bond indexes, Goldman Sachs added.
Despite a shaky global economy, the Indian equity market stood on a firm footing in calendar year 2023. Benchmark indices Nifty50 and S&P BSE Sensex scaled new peaks fetching double-digit returns. Consequently, India’s share in global market capitalization climbed to an all-time high of 3.8% in December, showed an analysis by Motilal Oswal Financial Services Ltd.
This reading has been hovering above its historical average of 2.6% in the recent past. A slew of positive domestic factors along with robust liquidity inflows by foreign and domestic investors came as a boost. Expectations that the US Federal Reserve could begin its interest rate easing cycle in 2024 could keep sentiment in the equity market upbeat. However, on the flipside, there could be nervousness among investors in a run-up to the 2024 general elections. Plus, valuation-wise India remains an expensive bet with one-year forward price-to-earnings multiple at a premium to Asian peers.
Vodafone Idea is not in talks to tie-up with billionaire Elon Musk's satellite internet unit Starlink, the telecom operator said in a stock exchange filing on Tuesday.
Vodafone Idea’s stock had touched a 52-week high on New Year’s Day amid news reports claiming the government could sell its 33% stake in the company to Elon Musk, and his satellite internet venture Starlink collaborating with the carrier
BUY - State Bank of India; CMP: 645; Target: 700; SL: 620 - MEDIUM TERM TECH PICK
The stock has witnessed a decent rally in the last one month and has resisted near 660 zone with some consolidation seen thereafter. Currently a pennant formation is indicated on the daily chart and with some signs of improvement, we anticipate for further rise in the coming days. The RSI has cooled off from the overbought zone and is currently well placed to expect for second round of momentum. With the chart looking good, we suggest to buy and accumulate for an upside target of 700 keeping the stop loss at 620.
December auto sales: Strong recovery in 2Ws - The strength in auto sales seen in the recently concluded festive season continued in December with strong y-y growth across segments. PVs posted steady y-y growth while domestic 2Ws saw strong growth on a weak base. Tractor volumes declined by mid double-digits, likely impacted by weak agricultural activities in December. CV volumes declined by low single digit y-y (ex AL), led by decline in LCV sales. 3Ws continued their solid growth trend. While growth trends across verticals were encouraging, demand drivers, especially rural, remain mixed.
Lateral data trends: Our proprietary commodity cost index was largely flat m-m in December. Many OEMs announced price hikes last month to offset the increase in commodity prices and do not expect any significant impact on margins. Consumer confidence continues to be strong. However, MGNAREGA funds were significantly lower than those in 2022, reservoir levels were below the past 10-year mean, real rural wage growth was near zero, and petrol and diesel demand growth has been falling in recent months.
PV market share trends: We estimate that Toyota, MM, TTMT and Hyundai gained market share while MSIL had the highest market share loss in December.
2W trends (excluding Honda, HMCL): Bajaj Auto and TVSL gained market share, while RE lost, as per our calculations.
Gold prices rose on Tuesday, supported by the prospect of interest rate cuts in 2024 from the Federal Reserve, while investors look forward to a slew of economic data this week for more clarity on the U.S. rate outlook.
Spot gold was up 0.5% at $2,071.99 per ounce. US gold futures also gained 0.5% to $2,081.00 per ounce.
Hindustan Unilever Ltd (HUL) has received GST demand and penalties totalling ₹447.5 crore from authorities of five states.
These "orders are currently appealable" and the company will make an assessment for that, HUL said in a stock exchange filing late on Monday.
SRF Ltd has commissioned its wholly owned subsidiary SRF Altech Ltd, built at a cost of ₹536 crore and which will be used to manufacture aluminium foil.
Bitcoin rose above $45,000 on Tuesday, a first since April 2022, buoyed by optimism around possible approval of exchange-traded spot bitcoin funds.
Bitcoin touched a 21-month peak of $45,488, having gained 154% last year in the strongest performance since 2020. It was last up 2.6% at $45,344 but remains far off the record high of $69,000 it touched in November 2021.
Ether, the coin linked to the ethereum blockchain network, was 1% higher at $2,376 on Tuesday.
At open, the Sensex was down 119.39 points at 72,152.55, and the Nifty fell 21.90 points to 21,720. About 1,661 shares advanced, 583 declined, and 98 were unchanged.
Consumers flocked to sport utility vehicles (SUVs) to drive passenger vehicle (PV) sales beyond four million in 2023, a top industry executive said, as they continued to disengage from sedans and hatchbacks. This, even as the vehicles themselves turned costlier by an average of 10% during the year.
Over two million SUVs were sold last year, fetching 49% of total sales compared to 42% in 2022, said Shashank Srivastava, senior executive director at Maruti Suzuki, the country’s top carmaker. According to Srivastava, the average PV carried a price tag of ₹11.5 lakh in 2023, 40% more than ₹8.2 lakh in 2019, and 9.5% higher than ₹10.5 lakh in 2022.
Apart from higher production costs due to costlier inputs and mandatory safety tech, a higher share of costlier SUVs and customer preference for top models have also been driving up average purchase prices in 2023.
A total of 287,904 passenger vehicles were dispatched from factories to dealerships in December, Srivastava said, the highest ever for the month, crossing the previous record of 276,000 units in December 2020. This was also a 4.4% growth over last year’s dispatches of 275,680 units.
BANK NIFTY has made three lower tops on its daily charts and witnessed a pullback from the higher top of range.
The trend reversal level will be 47,800 from current levels and could witness sharp sell-off in index pivotal to test 47,200 levels.
RSI is sloping downwards from below the average line and other key technical indicators are also in overbought from current levels.
Bank Nifty 48,500 CE has the highest OI while on the downside has moved lower to 48,000 for the put OI for the weekly expiry.
NIFTY-50 scaled a new all time high at 21,835 and witnessed a minor corrective action of 100 points in the last one hour of trade to close flat to positive.
On the higher side 22,000 will be a resistance being the round number and the weekly pivot resistance from current levels.
RSI is trending below the average line and pullback below to the lower range could be expected and other key technical indicators are overbought from current levels.
Highest call OI has moved to 22,000 strike while on the downside the highest put OI has moved higher to 21,700 for the weekly expiry.
Oil prices jumped 1% on Tuesday, as a clash in the Red Sea led to concerns over potential Middle East supply disruptions. Expectations of Chinese economic stimulus boosted demand outlook in the world's top crude importer.
Brent crude rose $1.03, or 1.3%, to $78.07 a barrel in early Asian deals, while US West Texas Intermediate crude was at $72.53 a barrel, up 88 cents, or 1.2%.
The risks of the Israel-Gaza conflict morphing into a wider regional conflict rose over the weekend after U.S. helicopters repelled an attack on Sunday by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea, sinking three Houthi ships and killing 10 militants, according to accounts by American, Maersk, and Houthi officials.
The Reserve Bank of India on Monday released comprehensive guidelines on the measures to be put in place by banks while classifying accounts and deposits as inoperative accounts and unclaimed deposits.
This includes periodic review of such accounts and deposits, measures to prevent fraud in such accounts/deposits, grievance redressal mechanism for expeditious resolution of complaints, steps to be taken for tracing the customers of inoperative accounts including nominees or legal heirs for account re-activation, claims settlement or closure.
The Centre has raised windall tax on the sale of domestic crude oil to ₹2,300 per tonne, effective Tuesday.
For the past two weeks, the levy -- Special Additional Excise Duty (SAED) -- on domestic crude oil was at ₹1,300 per tonne.
The ministry, through a notification, has brought down the additional excise duty on the export of diesel and aviation turbine fuel to zero.
The increase in the windfall tax on the sale of locally produced crude oil comes at a time when the price of crude oil has largely been steady. On Friday, 29 December, the March contract of Brent on the Intercontinental Exchange closed at $77.49 per barrel, against $76.55 on 15 December. It had risen to $81.07 on 26 December.
Vodafone Idea, Vedanta, TVS Motor, Nestle India, LIC, SJVN, among others, will be in focus today.
Balrampur Chini Mills and Hindustan Copper are F&O ban list for 2 January.
The GIFT Nifty futures traded 20 points higher at 21,865, indicating a positive start for Indian benchmarks.
Asian equities began the first trading day of the year with little momentum, after US stocks retreated from near all-time highs last week in a blip for a market notching its longest weekly advance since 2004.
Australian benchmark ticked slightly higher, while Japan is closed for holidays. Chinese shares were set to edge higher and contracts for US shares were muted.
Hong Kong stocks rose at the open Tuesday as investors returned for a new year hoping for a better run than 2023, with eyes on the Federal Reserve after it said it would cut interest rates in the months ahead.
The Hang Seng Index added 0.51%.
The Shanghai Composite Index dipped 0.07%, and the Shenzhen Composite Index on China's second exchange edged up 0.06%.
