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PremiumSensex Today | Share Market Live Updates: India's benchmark indexes closed at fresh record highs for the second day in a row on Tuesday, boosted by strong macroeconomic data, bets of a US rate cut in March and the country's ruling party winning key state elections.
Banks gained 1% while public sector banks added 1.3%. Several brokerages picked financials and large-caps among their most preferred sectors as they anticipated a rally in domestic equities ahead of 2024 general elections.
Asian shares declined Tuesday on heavy selling of property and technology shares. US futures slipped and oil prices were little changed.
Hong Kong’s Hang Seng dropped 2.4% to 16,238.79, while the Shanghai Composite lost 1.7% to 2,972.30 as worries flared over weakness in the Chinese economy.
Japan's benchmark Nikkei 225 slipped 1.4% to finish at 32,775.82. Australia's S&P/ASX 200 dipped 0.9% to 7,061.60. South Korea's Kospi shed 0.8% to 2,494.28.
Wall Street is coming off a solid week and a strong November on hopes that inflation is easing enough to allow the Federal Reserve to stop raising interest rates. Investors are also hoping that the economy remains strong enough to avoid a recession.
This week's main macroeconomic focus will be Friday's jobs report for November, which may help investors gauge the Fed's likely interest rate path, as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control while averting a recession.
Traders widely expect the central bank will keep rates unchanged at its meeting next week. Interest rate futures suggest a 58% probability the Fed will start cutting rates by March 2024, according to the CME Group's FedWatch tool.
The central bank paused raising rates after its most recent increase in late July.
Wall Street expects rates to remain steady into early 2024, when the Fed could begin cutting interest rates back from their highest level in two decades. The Fed’s next decision on rates will follow the close of their next two-day meeting on 13 December.
Indian equities saw another day of gains, with benchmark Sensex and Nifty closing at fresh record highs for the second day in a row on Tuesday. Adani Group stocks surged, accounting for nearly 70% of the market gains.
The Sensex jumped 431.02 points to end the day at 69,296.14, while the Nifty added as up 168.30 points to close at 20,855.10.
Adani Group stocks rose as much as 20%, with their total market capitalisation crossing ₹13 trillion. In the two sessions, the 10 listed Adani Group entities gained over ₹2.7 trillion, recovering all the losses they suffered after a scathing report on 24 January by US-based short-seller Hindenburg Research alleged that Adani Group is involved in accounting fraud, stock price manipulation, and improper use of tax havens.
On the Nifty, Adani Enterprises, Adani Ports, Power Grid, NTPC and State Bank if India were among the top gainers, while LTIMindtree, HCL Technologies, Divis Labs, HUL and Bajaj Auto fell the most.
Midcaps and smallcaps also notched up gains.
Ambuja Cements Ltd, the cement and building material company of the diversified Adani Group, on Tuesday announced the successful completion of the acquisition of Sanghi Industries.
This strategic acquisition, valued at an enterprise value of ₹5,185 crore, enhances Ambuja Cement’s market presence.
With the acquisition funded entirely through internal accruals, Ambuja Cements holds a controlling stake of 54.51% in Sanghi Industries.
Oil steadied after a three-day loss as Saudi Arabia said recent cuts by OPEC would be honored in full and could be extended, pushing back against persistent skepticism over the curbs’ effectiveness.
Global benchmark Brent held above $78 a barrel after dropping by more than 6% in the preceding three sessions, while West Texas Intermediate was over $73
European stocks inched lower on Tuesday, dragged by financials after Qatar Holding cut its stake in Barclays, while investors maintained caution ahead of key economic data due later in the day.
The pan-European STOXX 600 index eased 0.1%.
London's benchmark FTSE 100 index dropped 0.4% to 7,482.97 points.
In the eurozone, the Paris CAC 40 rose 0.2% to 7,343.76 points and Frankfurt's DAX index gained 0.1% to 16,421.08.
The US ratings agency Moody's on Tuesday downgraded the outlook on China's credit rating to "negative" from "stable" on the back of rising debt in the world's second-largest economy, agencies reported Tuesday.
"The change to a negative outlook reflects rising evidence that financial support will be provided by the government and wider public sector to financially stressed regional and local governments... and state-owned enterprises, posing broad downside risks to China's fiscal, economic and institutional strength," Moody's said in a note.
The two-wheeler category outperformed other automotive segments in November, with companies clocking robust year-on-year growth. This surge was particularly notable given the higher volume growth rates of two-wheelers compared to their automotive counterparts.
However, post-festive season inventory corrections led to a 14-16% month-on-month volume decline for major players like Bajaj Auto, Hero MotoCorp, and TVS Motor. (Read here)
State-run Bank of India is planning to raise up to ₹4,500 crore via a qualified institutional placement (QIP) of new shares this week.
The base issue size may be in the range of ₹2,000–2,500 crore, with a greenshoe option of ₹1,500 crore.
Lead managers to the issue include BNP Paribas, BOI Merchant Bankers, DAM Capital, IDBI Capital, IIFL Capital, Nuwama Wealth and SBI Capital Markets, according to the report.
In August 2021, Bank of India had raised ₹2,550 crore through a QIP.
Brokerage Elara Capital has raised Varun Beverages' target price by almost 11% and believes that the stock could rise by more than 10% from its closing price of ₹1,070 on 4 December.
Following a visit by the brokerage to the Varun Beverages plant in Nuh, Gurgaon, the brokerage house stated in its report that it will essentially stick to its estimates for CY24–25 and reiterate 'Accumulate' with a higher target price of ₹1,180 from ₹1,065 as it assigns 48x (from 45x) CY25E P/E, given a roll-forward and 45% increase in capacity over CY22.
"We estimate Varun Beverages, to post an earnings per share compound annual growth rate (EPS CAGR) of 21.5% during CY23-25 which is highest amongst our coverage universe," the brokerage said.
India’s organised liquor industry is expected to report 12-13% growth in revenues this fiscal thanks to strong demand and consumers buying more expensive spirits, according to a report by Crisil released on Tuesday.
Crisil expects the industry to record revenues of ₹4.45 lakh crore in FY23. The industry reported a 15% jump in annual revenues in the previous fiscal. (Read here)
Gold prices rose on Tuesday as the U.S. dollar and Treasury yields fell after traders slightly pared bets for an interest rate cut by the Federal Reserve in the first quarter of 2024, Reuters reported.
Spot gold was up 0.2% at $2,034.19 per ounce by 0617 GMT. Bullion had surged to an all-time high of $2,135.40 on Monday, before dropping more than $100 in a single day to close 2% lower.
U.S. gold futures for February delivery rose 0.5% to $2,052.50.
Making gold less expensive for other currency holders, the dollar index fell 0.1%, while yields on 10-year Treasury notes slipped to 4.2587%.
Jupiter Wagons Ltd on Tuesday said it has raised ₹403 through Qualified Institutional Placement and the funds raised will be used for funding the company's growth plans.
The QIP Committee has allotted 12806595 equity shares at ₹315 each, inclusive premium of ₹305 per share.
About 9,450 people were evacuated to safety as severe cyclonic storm Michaung is expected to make landfall close to Bapatla in south Andhra Pradesh coast within the next four hours. As per the IMD, during landfall, Michaung is expected to bring gales with speeds of 90 – 100 km per hour, gusting up to 110 kmph. The weather system over the west-central Bay of Bengal, running along and off the south Andhra Pradesh coast, is likely to move nearly northwards, parallel and close to the south Andhra Pradesh coast, the IMD said.
India is set to become the third-largest economy by 2030, and we expect it will be the fastest growing major economy in the next three years, rating agency S&P Global said in its Global Credit Outlook 2024.
India currently is the fifth largest economy in the world behind the US, China, Germany and Japan.
S&P has forecast a 6.4% GDP growth for India in the fiscal year through March 2024 (2023-24) as compared to 7.2% in the previous financial year.
A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity. Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one. Unlocking the labor market potential will largely depend upon upskilling workers and increasing female participation in the workforce. Success in these two areas will enable India to realize its demographic dividend.
A booming domestic digital market could also fuel expansion in India’s high-growth startup ecosystem during the next decade, especially in financial and consumer technology. In the automotive sector, India is poised for growth, building on infrastructure, investment, and innovation.
India's benchmark indexes opened at fresh record highs on Tuesday for a second session in a row, boosted by strong macroeconomic data, bets of a US rate cut in March and the country's ruling party winning key state elections.
At 11am, the Nifty50 rose 154.40 points to 20,841.20, while the Sensex was up 487.87 points at 69,352.99.
Jitendra Gohil, chief investment officer, Kotak Alternate Asset Managers, said, "Equity market is poised for further highs. The domestic and global macroeconomic environment remains highly supportive for Indian equities. The decisive verdict 9stae elections) could bolster investor confidence in Indian equities. Investors may extrapolate this resounding victory for the ruling government and assign a higher probability of a stable government at the centre in the upcoming general election in May 2024.
Political stability remains crucial for the country to attract long-term foreign capital, maintain financial stability and sustain current high valuations.
Gohil remains constructive on Indian equities and believes the market is underestimating India's GDP growth.
The market has the potential to go up by another 5% in the next many weeks. Beyond that valuations will get stretched inviting correction in the market, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
It is important to understand that FPIs have reversed their selling strategy and have been consistent buyers during the last seven days. There is accumulation happening in the frontline banking stocks. This, along with short covering and reasonable valuations, will keep this segment strong, said Vijayakumar.
Gold prices rose on Tuesday, as the U.S. dollar and Treasury yields fell after traders slightly pared bets for an interest rate cut by the U.S. Federal Reserve in the first quarter of 2024, Reuters reported.
Spot gold was up 0.2% at $2,033.49 per ounce. Bullion had surged to an all-time high of $2,135.40 on Monday, before dropping over $100 in a single day to close 2% lower.
U.S. gold futures for February delivery rose 0.5% to $2,051.70.
India's robust services sector stayed strong in November but expanded at its slowest pace in a year as demand softened despite cooling inflationary pressures, a private survey showed.
The S&P Global India Services Purchasing Managers' Index fell to 56.9 in November from October's 58.4, below all expectations in a Reuters poll which predicted a more modest dip to 58.0.
Rates of both input cost and output charge inflation slipped to eight-month lows, S&P Global said. There were softer expansions in new work intakes and output, the slowest in a year, but they were nevertheless sharp and well above their respective long-run averages.
Businesses maintained a positive outlook for activity in the coming 12 months, although confidence somewhat faded due to rising inflation expectations
“The Bank Nifty bulls made a strong comeback, surpassing the all-time high levels and dispelling the bearish sentiment. The momentum is anticipated to persist, with robust support identified at the 46,000-45,800 zone, serving as a cushion for the bulls," said Kunal Shah, senior technical & derivatives analyst at LKP Securities.
He believes the ongoing momentum rally has the potential to propel the index higher towards 47,000/48,000.
Adani Green Energy on Tuesday said that it has received a follow-on funding of $1.36 billion via senior debt facility, boosting its construction financing framework - which is backed by a consortium of international banks - to $3 billion.
The green loan facility will play a pivotal role in enabling the development of Adani Green’s next milestone- the world’s largest renewable energy park at Khavda in Gujarat, it said in a regulatory filing.
The renewable energy park at Khavda will not only enable the company's vision of 45GW operating renewable capacity by 2030 but will also play a critical role in India’s net zero journey.
The Reserve Bank of India likely sold US dollars on Tuesday to prevent further losses in the rupee, as the currency hovered near its lifetime low of 83.42, five traders told Reuters.
The rupee was at 83.3775 against the U.S. dollar as of 0915am IST, slightly weaker than its close at 83.3650 in the previous session.
The rupee had hit its lifetime low of 83.42 on 10 November.
India's benchmark indexes opened at fresh record highs on Tuesday for a second session in a row, boosted by strong macroeconomic data, bets of a US rate cut in March and the country's ruling party winning key state elections.
At open, the Nifty 50 rose 0.59% to 20,808.90 points, while the Sensex was up 0.44% to an all-time high of 69,168.53.
Indian indices were higher in pre-open.
Sensex was up 116.58 points at 68,981.70, and the Nifty was up 33.70 points at 20,720.50.
State-controlled Oil and Natural Gas Corporation (ONGC) will in May next year start commercial production of crude oil from its much-delayed flagship deepsea project in Krishna Godavari basin, PTI reported on Monday.
In a written reply to a question in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Rameswar Teli said ONGC's KG basin project, KG-DWN-98/2, is in "challenging geology".
Delays have occurred due to multiple challenges and issues in actual project implementation such as subsurface geological issues, shifting of well locations and surface facilities/processing platform, delays and disruption in project supply chain for vendors spread across multiple countries due to Covid-19 pandemic and challenging weather conditions.
NIFTY50 moved higher and scaled to all time high 20,702 and closed near the high point of the day forming higher bottoms and higher tops.
The up-move has been sharp over the past five days and the supports are now moved higher to 20,250 levels being the previous all time high.
RSI has moved to the higher band of 75 levels and would continue to move higher trending above the average lines.
Highest call OI has moved to 21,000 strike while on the downside the highest put OI is at 20,500 for the weekly expiry.
JSW Infrastructure, part of the JSW Group, has acquired a stake in PNP Maritime Services (PNP Port) in Maharashtra's Raigad through its subsidiary, JSW Dharamtar Port. The estimated enterprise value of PNP Port is around ₹700 crore.
According to a company statement on Monday, JSW acquired 10,00,001 shares from SP Port Maintenance, setting a 15-day deadline to complete the acquisition. However, the transaction is subject to the completion of conditions outlined in the agreement.
Fireside Ventures Investment Fund, a venture capital fund, is looking to divest 1.9% stake in Honasa Consumer, the parent company of beauty and personal care products brand Mamaearth, through block deals on Tuesday. The floor price has been fixed at ₹368.7-384.1 per share, a discount of up to 4% on the prevailing market price.
Oil steadied after a three-day loss as Saudi Arabia said recent cuts by Opec would be honored in full and could be extended, pushing back against persistent skepticism over the curbs’ effectiveness.
Global benchmark Brent held above $78 a barrel after dropping by more than 6% in the preceding three sessions, while West Texas Intermediate was over $73. Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg News the recently decided cuts would “overcome" an expected inventory build in the first quarter, and could be continued further into 2024 if needed.
HCL Tech, Honasa Consumer, SpiceJet, Brigade Enterprises, are among the stocks, that could be in focus in trade Tuesday.
Indiabulls Housing Finance, India Cements, Zee Entertainment Enterprises, and Delta Corp are in the F&O ban list for 5 December.
GIFT Nifty futures on the NSE IX fell 43.5 points to 20,817 in early deals on Tuesday, indicating a negative start for Indian indices.
India's benchmark indexes ended at fresh all-time highs on Monday, aided by strong domestic macroeconomic data and elevated bets of a US rate cut in March, while analysts saw momentum picking up in the ongoing rally after the ruling Bharatiya Janata Party's victory in key state elections.
The Nifty closed at 20,686.80, up 419 points, while the Sensex added 1,384 points to end at 68,865.12.
Asian markets fell across the board as investors assessed a slew of economic data from across the region. South Korea’s overall inflation rate in November fell to 3.3%.
Nikkei, Hang Seng were down 1% each, while Shanghai Composite, Taiwan Weighted fell 0.5% each.
Wall Street gave back some of its recent gains Monday as stocks finished lower ahead of some key reports this week on the job market that might provide more insight into the Federal Reserve’s thinking about interest rates.
The S&P 500 closed 0.5% lower. The benchmark index was coming off its best month in more than a year, and reached its highest level since March 2022 on Friday. The Dow Jones Industrial Average slipped 0.1%, while the Nasdaq composite dropped 0.8%.
