Closing Bell: Another day, another high, Nifty at 20,850, Sensex up 431 points

Benchmark indices ended higher for the sixth consecutive session on December 5 with Nifty around 20,850. At close, the Sensex was up 431.02 points or 0.63 percent at 69,296.14, and the Nifty was up 168.30 points or 0.81 percent at 20,855.10.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

Markets edged higher for yet another session and gained nearly a percent, in continuation of the prevailing up move. After the initial surge, Nifty remained in a range for most of the session and settled around the day’s high at 20,855.10 levels. Meanwhile, a mixed trend on the sectoral front kept the traders occupied wherein energy, metal and banking were among the top performers. The broader indices too traded in sync and ended with modest gains.

The rotational buying across heavyweights is pushing the Nifty to a newer high despite the overbought reading and it is now heading towards a new milestone of the “21,000”+ mark. We recommend focusing on the stocks that were on the sidelines for some time and are likely to join the move now. At the same time, traders should keep on trailing stop losses in the existing trades to capitalize on the prevailing trend.

Benchmark indices extended their winning streak for the sixth consecutive session, driven by the positive sentiment in domestic markets following state election victories for the ruling party. Nifty concluded the day with a gain of 168.30 points or 0.81 percent, reaching 20,855.10. Banking stocks, particularly public sector banks, experienced a significant surge, propelling Bank Nifty to a notable increase of 1.25% or 580.85 points, closing at 47,012.25.

Despite the bullish trend, caution is warranted as Nifty enters the overbought zone, with the Relative Strength Index (RSI) exceeding 80. This could lead to some profit booking; considering these developments, it is advisable to adjust and trail your stop loss to mitigate any potential risk.

There's growing consensus that the rate hiking cycle in the US is over given softer labour market data and slowing inflation numbers coming out of the US economy. The Fed is widely expected to leave rates unchanged at 5.25% to 5.50% at its December meeting. Markets are also expecting roughly 125bps of cumulative interest rate cuts by December 2024, with the first cut expected as soon as March 2024. These renewed expectations of softer Fed policy in 2024 are driving down US yields and US dollar and driving up gold.

While we too are cautiously optimistic that the rates have peaked, which should keep gold well supported, rate cut expectations and the upmove in gold is vulnerable to a reversal in the short term in case of a higher for longer Fed stance or hawkish Fed commentary to push back against market expectations and loosening of financial conditions.

The domestic market extended the gains and hit fresh highs despite cautiousness among global peers ahead of key US job data this week. The aura of the state election results and other positive factors like above-expected earnings and GDP growth data are supporting the return of FII flows to the Indian market.

The RBI’s monetary policy meeting is expected to be status quo however, the commentary on economy growth, foodgrain prices and inflation trajectory will be closely watched.

Extending its positive momentum, Indian equities started the day at another record level of 20,800. Due to the overbought condition, a knee-jerk reaction was observed in the mid-session followed by a swift recovery, and for the rest of the day, the Index remained rangebound. Nifty50 advanced by 168.30 points and settled at 20,855.10. A mixed activity was seen among the sectors with Energy and Metal being the outperformers while Media and IT ended in red. Mid and Smallcaps continued to underperform as major buying influx was seen in the Index stocks only.

With an overbought condition, it appears that the Index has formed a Hanging Man candlestick pattern. We may see a price or time-wise correction and in the case of a price-wise correction, a reversal of the trend will only be confirmed when it closes below 20,700.

Indian rupee ended flat at 83.38 per dollar versus previous close of 83.37.

Benchmark indices ended higher for the sixth consecutive session on December 5 with Nifty around 20,850.

At close, the Sensex was up 431.02 points or 0.63 percent at 69,296.14, and the Nifty was up 168.30 points or 0.81 percent at 20,855.10. About 1611 shares advanced, 1833 shares declined, and 99 shares unchanged.

Top gainers on the Nifty were Adani Enterprises, Adani Ports, Power Grid Corporation, NTPC and SBI, while losers were LTIMindtree, HCL Technologies, Divis Labs, HUL and Bajaj Auto.

Mixed trend was seen on the sectoral front with Power index up 6 percent, oil & gas index up nearly 2 and Bank index up 1 percent, while Information Technology and Realty indices down 0.5 percent each.

BSE midcap and Smallcap indices ended with marginal gains.

-Equal-weight call, target Rs 285 per share
-Disbursements were +1 percent MoM, +16 percent YoY
-Gross assets grew 26.6 percent YoY, +0.9 percent MoM
-Have assumed higher growth in H2FY24
-If disbursement growth does not pick up, there could be risks to our AUM forecast
-Collection efficiency was down YoY at 94 percent
-GS3 and GS2 were range-bound versus October

Indian Rupee depreciated marginally by 3 paise on Tuesday on positive US Dollar and disappointing macroeconomic data. India’s services PMI declined to 56.9 in November 2023 vs. the forecast of 58. However, positive domestic markets and a decline in crude oil prices cushioned the downside. US Dollar gained on a decline in US bonds after markets turned cautious on its rate cut expectations.

We expect Rupee to trade with a slight negative bias on positive US dollars and weak global markets. However, expectations of fresh foreign and a weak tone in crude oil prices may support Rupee at lower levels. Traders may take cues from US ISM services PMI and JOLTS job openings data. Investors may remain cautious ahead of RBI’s monetary policy decision later this week. USDINR spot price is expected to trade in a range of Rs. 83.10 to Rs. 83.70.

The U.S. dollar regained some ground on Tuesday and hovered near a one-week high against a basket of currencies, ahead of a flurry of employment data that could upend investor expectations for the outlook for interest rates.

The euro took an early knock from comments by European Central Bank member Isabel Schnabel, who said in an interview with Reuters that interest rate hikes were off the table, given the "remarkable" fall in inflation.

Bitcoin held close to its highest since April last year, near $42,000, as a decline in the dollar in recent weeks has diverted cash into riskier assets.

The dollar index was up 0.1%, around one-week highs.

-Hold rating, target at Rs 295 per share
-Disbursements steady MoM but rose 16 percent YoY
-Rise in monthly AUM rundown likely reflect conversion of trade advances to loans
-Stage 2 & 3 assets were similar to September 2023 levels
-Valuations reasonable at current levels
-Visibility on trajectory for higher RoA to drive rerating seems limited

China's economic growth is steadily decelerating, prompting a recent downgrade from stable to negative by Moody's. However, this action reflects a lagging indicator of an already entrenched trend. Despite various stimulus efforts, the overall outlook for the Chinese economy remains negative.

In stark contrast, India's economy is surging, and its rapid expansion is likely to attract foreign investors, even amidst premium valuations.

Sensex Today | Market at 3 PM

The Sensex was up 421.26 points or 0.61 percent at 69,286.38, and the Nifty was up 156.50 points or 0.76 percent at 20,843.30. About 1500 shares advanced, 1745 shares declined, and 81 shares unchanged.

-Neutral call, target Rs 1,200 per share
-State street insources BPO operations from co
-Arrangement is effective in the end of Q1FY25
-After divesture, co would lose USD 97 m of revenues or 80 bps of its current revenues
-As a part of this divesture, co would receive USD 170 m + net book value on date of closing

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, with Beijing saying it was "disappointed" by the move. READ MORE

Fin Nifty is trading positively, crossing the 21,000 mark in expiry day trading on December 5. On a weekly basis, Fin Nifty futures have observed a price increment of 5.35 percent, accompanied by a long build-up in open interest. READ MORE

-Buy call, target Rs 140 per share
-Expect a 15 percent food delivery (FD) CAGR & 25-30 percent for quick commerce (QC) over next 4-5 years
-The expectations are for sustained margin expansion
-Demand weakness is a key downside risk for both FD & QC business

-Overweight call, target Rs 1,400 per share
-State street is exercising the call option to acquire company’s UK's 49 percent equity stake in JV
-Consideration amount for acquisition at USD 170 m + net book value (on closing)
-Transaction is expected to be completed in Q2FY24 or Q1FY25
-Entity has a revenue base of USD 97 million (0.8 percent of company’s revenue)
-Entity has a net worth of USD 94 million (1.2 percent of company’s net worth)
-Company owned 49 percent of the voting rights and 100 percent of dividend rights of the JV

-Buy rating, target at Rs 350 per share
-Moderation in MoM growth is likely due to unwind of trade advances
-Collection efficiency slipped YoY on festive season spilling over to November this year

Analjit Singh, Chairman of Max Life Insurance Company, the material subsidiary of the company, has stepped down from the chairmanship and membership of the board of directors of Max Life effective from December 4. Rajiv Anand, Non-executive director of Max Life, nominated by Axis Bank, has been appointed as the Chairman of Max Life effective December 5.

HCC Infrastructure Company, a subsidiary of Hindustan Construction Company, has received Rs 110 crore as an earn out money from Cube Highways and Infrastructure V Pte Ltd, for stake sale in Baharampore-Farakka Highways (BFHL).

Further, Steiner AG, Switzerland, the material subsidiary of HCC has entered into a Share Purchase Agreement with Demathieu Bard, a company headquartered in France, for divestment of its entire equity interest in Steiner Construction SA, Switzerland, a step-down material subsidiary of the company for CHF 98 million (Rs 928 crore). Accordingly, Steiner Construction SA will cease to be a subsidiary of Steiner AG, Switzerland and the company, on completion of sale/disposal.

The U.S. dollar regained some ground on Tuesday and hovered near a one-week high against a basket of currencies, while the Australian dollar fell after its central bank left interest rates unchanged.

The Aussie was last down 0.63% at $0.6578 after the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35% on Tuesday, as widely expected, and noted that economic data received since November had been broadly in line with forecasts.

Sensex Today | Nifty PSU Bank index up 1.2 percent led by State Bank of India, Indian Overseas Bank, Canara Bank:

Oil prices held steady on Tuesday amid uncertainty over voluntary output cuts by the OPEC+ group of producers, tensions in the Middle East and weak economic data from the U.S..

Brent crude futures inched up 14 cents to $78.17 a barrel by 0735 GMT, while U.S. West Texas Intermediate crude futures rose 15 cents to $73.19.

-Buy call, target Rs 350 per share
-Reported disbursements/business assets growth of 16 percent YoY/26 percent YoY
-Reported disbursements/business assets growth 1 percent MoM each to Rs 5,300 crore/Rs 96,600 crore
-Moderation in MoM growth of business assets is likely due to unwind of trade advances
-On YTD basis, disbursements/business assets growth has been 16 percent/17 percent
-Collection efficiency was stable MoM at 94 percent
-Collection efficiency was lower than Nov’22 level of 96 percent
-Collection efficiency lower likely due to festive season spilling over to November this year

Brigade Enterprises has entered into a Joint Development Agreement with land owners to develop a luxury residential project, spread over 4 acres at Kurubarahalli, Mysore. The developable area of the project will be about 0.40 million square feet. with a gross development value of Rs 300 crore.

Sensex Today | BSE Power index up 4 percent supported by Adani Green Energy, Adani Energy , Adani Power:

Gulshan Polyols had participated in a tender floated by oil marketing companies (OMCs - BPCL, HPCL and IOC) inviting various molasses and grain based distilleries for supplying Ethanol under EBPP during Ethanol Supply Year (ESY) till October 31, 2024 at their various locations across the country. Gulshan Polyols has received an order for supplying 89,404 kilolitres of ethanol from its 500 KLPD ethanol plant at Boregaon with an estimated order value of Rs 571.5 crore.

Sensex Today | Market at 1 PM

The Sensex was up 354.97 points or 0.52 percent at 69,220.09, and the Nifty was up 122.30 points or 0.59 percent at 20,809.10. About 1454 shares advanced, 1735 shares declined, and 99 shares unchanged.

Unichem Laboratories has sold the balance equity shares held in Optimus Drugs to Sekhmet Pharmaventures for Rs 67.47 crore.

Shares of SpiceJet surged 3 percent to day's high of Rs 47.7 per share on December 5 after the National Company Law Tribunal (NCLT) dismissed a plea to initiate solvency proceedings against the airline filed by aircraft lessor Willis Lease Finance over unpaid dues.

In the past one month, the stock of this low-cost carrier airline soared 22 percent as against 7 percent rise in the benchmark Sensex.

Around 3 aircraft lessors have filed four insolvency pleas against SpiceJet in 2023 for the non-payment of dues. Other than the aircraft lessors, a tech services provider has also moved an insolvency plea against SpiceJet. Read More

-Neutral call, target at Rs 1,200 per share
-State street insources BPO ops from HCL Tech
-Company would lose USD 97 m of revenue or 80 bps of revenue on UK arm’s divestment
-Company would receive more than USD 170 million net book value on date of closing

Sensex Today | BSE Realty index down 1 percent dragged by Phoenix Mills, Godrej Properties, Mahindra Life:

RR Kabel said the Income Tax Department officials concluded their search operations at its offices and manufacturing units on December 4. The officials started the said search operations on November 29.

The RBI MPC meeting later this week is expected to be a non-event from the policy rate perspective as the Central Bank is predicted to keep the repo rate unchanged for the fifth meeting in a row. While we do not expect the RBI to indicate a “dovish hold” in this meeting, we do expect the Central Bank to tone down its hawkishness as the global environment is less hostile as compared to the previous policy review in October 2023.

Additionally, markets will eagerly watch for cues on liquidity management and RBI open market operations.

Sensex Today | BSE Information Technology index down 1 percent dragged by Cyient, L&T Technology, Axiscades Technologies:

The market is commencing the day on a positive note, carrying forward the momentum from yesterday's impressive trading session. In the Nifty segment, the 21000 Call strike is notable, holding an Open Interest (OI) of approximately 72 lakhs shares. Conversely, on the Put side, the 20500 strikes exhibit significant OI, amounting to around 73 lakhs shares.

Meanwhile, in the Bank Nifty, there's a strategic shift, with the 47000 Call strike holding meaningful OI at approximately 32 lakhs shares, while the 46000 Put strike boasts a sizeable OI of around 36 lakh shares.

A 'buy on dips' strategy is recommended, supported by stability in global markets, a favorable trend in crude oil prices, and robust inflows from Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII).

vSensex Today | BSE Samllcap index down 0.3 percent dragged by Paisalo Digital, Cyient, Electronics Mart India:

Shares of Adani Green Energy surged over 14 percent to above Rs 1,280 in the morning trade on December 5 after the company announced that it secured an additional $1.36 billion funding via senior debt facility.

The funding takes the firm’s total construction financing framework to $3 billion, supported by an international consortium of banks. Read More

Sensex Today | Market at 12 PM

The Sensex was up 222.17 points or 0.32 percent at 69,087.29, and the Nifty was up 73.60 points or 0.36 percent at 20,760.40. About 1355 shares advanced, 1804 shares declined, and 104 shares unchanged.

Quess Corp has signed a Memorandum of Understanding (MoU) with the National Skill Development Corporation (NSDC), the apex skill development organization under the Ministry of Skill Development and Entrepreneurship (MSDE), to enhance skill development and employability.

India will become the world's third largest economy by 2030, S&P Global Ratings said on Tuesday as it forecast the nation's GDP growth reaching 7 per cent in 2026-27 fiscal year. In its Global Credit Outlook 2024, S&P saw a 6.4 per cent GDP growth in the fiscal year through March 2024 (2023-24) as compared to 7.2 per cent in the previous financial year. READ MORE

The Indian equity benchmark were trading higher for the sixth consecutive session on December 5 as bullish momentum continues. For the Nifty, immediate support is at 20,500 and 20,300 zones, while resistance is at 20,800 and then 21,000 zones. Now, it needs to hold above 20,500 for an upmove towards 20,800 and then 21,000. READ MORE

Bajaj Group has become the fifth business house to cross the Rs 10-lakh-crore mark in market cap. Earlier, Tata Group, Mukesh Ambani Group, HDFC Bank and Adani Group have achieved this milestone. READ MORE

The Bharat Forge stock rose over 2 percent and hit a 52-week high of Rs 1,185.95 on December 5 after Class 8 truck orders in North America jumped to its highest level in 13 months.

Class 8 truck orders in November were up 32 percent from the previous month at 36,750 units. On a year-on-year basis, the rise was at 3 percent. Since Bharat Forge has a presence in North America Class 8 truck business, a rise in orders bodes well for the company's growth prospects. Read More

Bannari Amman Spinning Mills has received board approval for transfer/disinvestment/sale of company’s equity shareholding in the subsidiary and joint venture company Young Brand Apparel, sale of its garment unit at Palladam, Tamil Nadu and sale of 6.43 acres of land with building at Perundurai. The board also approved raising of funds up to Rs 200 crore via issue of equity shares or convertible debentures through rights issue or qualified institutions placement, which will be utilised for reduction of the company’s borrowings.

Sensex Today | BSE Oil & Gas index up 1 percent led by Adani Total Gas, HPCL, BPCL:

Alembic Pharmaceuticals has appointed Pradeep Chakravarty as Head - Global Quality (senior management personnel), with effect from December 4. Earlier, he was working with Lupin.

Cupid share price added a percent in the early trade on December 5 after the personal-care company announced that it has acquired a new land parcel in an Industrial Area near Mumbai to increase its production capabilities.

The acquisition will enable company to amplify its production capacity by 1.5 times the existing output, the company said in its release. The annual production capacity will be augmented by approximately 770 million male condoms and 75 million female condoms. This expansion is in addition to the current production capacity of 480 million male condoms and 50 million female condoms, it added. Read More

Sensex Today | Market at 11 AM

The Sensex was up 487.87 points or 0.71 percent at 69,352.99, and the Nifty was up 154.40 points or 0.75 percent at 20,841.20. About 1816 shares advanced, 1288 shares declined, and 105 shares unchanged.

Venus Remedies achieved a significant milestone with the recent approval of marketing authorizations (MAs) for Enoxaparin 40 mg/0.4 ml and 60 mg/0.6 ml in Azerbaijan, marking the first entry of these products into the country.

Enoxaparin Sodium Injection, a low molecular weight heparin, effectively prevents blood clot enlargement and formation, addressing various medical conditions.

Shares of DCB Bank on December 5 saw a 4.2 percent increase at the opening, following the announcement that the promoter entity, Aga Khan Fund for Economic Development, has shown interest in investing $10 million. At 9:40 am, the stock was trading at Rs 117.70 apiece.

In a regulatory filing, DCB Bank said that promoter entity Aga Khan Fund for Economic Development (AKFED) had expressed its interest to invest up to $10 million by subscribing to additional equity shares of the Bank, in compliance with applicable laws and regulations.

According to the filing, the purpose of this investment is to further strengthen the Bank’s capital position and support its growth plans. The filing added that the Bank has a capital efficient business model and as on September 30, 2023, the CRAR without including the corresponding half-year Net Profit was at 16.55 percent. Read More

Sensex Today | BSE Bank index up 1 percent led by SBI, Federal Bank, ICICI Bank:

-Overweight call, target at Rs 1,400 per share
-State street to exercise call option to acquire HCLTech’s 49 percent in JV
-Entity has a revenue base of USD 97 m (0.8 percent of HCLTech’s revenue)

ICICI Prudential Mutual Fund through its ICICI Prudential Value Discovery Fund bought 35 lakh equity shares or 0.98% stake in 360 ONE WAM, at an average price of Rs 600 per share, valuing at Rs 210 crore. However, promoters Madhu N Jain, Nirmal Bhanwarlal Jain, and Venkatraman R sold 1 crore equity shares in company, amounting to Rs 600.13 crore.

Promoter Great Terrain Investment has exited CAMS, the mutual fund transfer agency, by selling its entire shareholding of 97.59 lakh equity shares in Computer Age Management Services via open market transactions, at an average price of Rs 2,766.47 per share, valuing the stake at Rs 2,700 crore.

However, Societe Generale, Morgan Stanley, Goldman Sachs, Abu Dhabi Investment Authority, UTI Mid Cap Fund, Sundaram BNP Paribas Select Midcap, Kotak Mahindra Mutual Fund, Birla Sun Life Mutual Fund, India Acorn ICAV, IIFL Mutual Fund, and White Oak India Equity Fund II bought 58.17 lakh equity shares in CAMS at an average price of Rs 2,766 per share, amounting to Rs 1,609.01 crore.

-Initiate buy, target Rs 568 per share
-Poised to harness potential in water purifiers
-Catalysts in place to drive growth & address product servicing opportunity
-Valuations factoring in recovery, trades at 36x FY26 EPS
-Expect company to deliver a revenue CAGR of 12 percent over FY23-26
-Expect company to deliver EBITDA margin improving to 14.9 percent by FY26 (10.2 percent in H1FY24)

Shares of Gulshan Polyols advanced 4 percent to Rs 232 in early trade on December 5 as the company received a contract to supply ethanol to oil marketing companies (OMCs).

"We have been awarded a contract for supplying 89,404 kilolitres of ethanol from our 500-KLPD ethanol plant at Boregaon at an order value of Rs 571.50 crore," the company said in a statement. The company will have to supply ethanol till October 31, 2024. Read More

MOIL has announced manganese ore production of 1.62 lakh tonnes in November, increasing 35% over a year-ago period. In April-November period of FY24, the manganese ore production increased 43% YoY to 10.9 lakh tonnes. Manganese ore sales in November grew by 18% YoY and April-November period 52% YoY.

Unichem Laboratories stock price gained 2 percent after the pharma company sold the equity shares held in Optimus Drugs to Sekhmet Pharmaventures for Rs 67.47 crore.

In a filing with the exchanges, Unichem Laboratories noted that 4,918 equity shares representing 0.02 percent holding in Optimus Drugs with a carrying value of Rs 0.29 crore in the company’s books were sold.

This is Unichem Lab’s second tranche of divestment of Optimus Drugs. In May 2022, Unichem Labs sold 19.97 percent of equity shares of Optimus to Sekhmet Pharmaventures on a fully diluted basis in the first tranche, for an aggregate consideration of Rs 270.99 crore. Read More

Shares of DCB Bank on December 5 saw a 4.2 percent increase at the opening, following the announcement that the promoter entity, Aga Khan Fund for Economic Development, has shown interest in investing $10 million. At 9:40 am, the stock was trading at Rs 117.70 apiece.

In a regulatory filing, DCB Bank said that promoter entity Aga Khan Fund for Economic Development (AKFED) had expressed its interest to invest up to $10 million by subscribing to additional equity shares of the Bank, in compliance with applicable laws and regulations. Read More

Bank of India is likely to launch qualified institutional placement (QIP) issue in the range of Rs 3,500-4,000 crore this week, reports CNBC-TV18 quoting sources. The base issue size may be in the range of Rs 2,000-2,500 crore, with a greenshoe option of Rs 1,500 crore.

Crude oil exhibited pronounced volatility and continued its decline on Monday, reaching nearly 5-month lows. This downturn was attributed to a resurgence in the dollar index and growing uncertainty surrounding the OPEC+ production cut. The dollar index rebounded from 14-week lows following hawkish comments from the Fed Chairman. Furthermore, crude oil prices faced downward pressure due to disappointing output cuts from OPEC+ nations. Despite these factors, geopolitical tensions in the Middle East and a decrease in inflation within the Euro-zone may lend some support to oil prices at these lower levels.

Anticipating ongoing fluctuations, we project crude oil prices to remain volatile in today's session. The support for crude oil stands at $72.65–72.10, with resistance observed at $74.00-74.80 for today's trading. In terms of Indian Rupees (INR), crude oil finds support at Rs 6,070-6,000, while resistance is seen at Rs 6,220-6,290.

Sensex Today | BSE Power index up 1.7 percent led by Adani Green Energy, Adani Energy, Adani Power:

Ambuja Cements announced the successful completion of the acquisition of Sanghi Industries Limited (SIL). This strategic acquisition, valued at an Enterprise Value of Rs. 5,185 crore.

With the acquisition funded entirely through internal accruals, Ambuja Cements holds a controlling stake of 54.51% in Sanghi Industries.

Sensex Today | Market at 10 AM

The Sensex was up 290.26 points or 0.42 percent at 69,155.38, and the Nifty was up 95.80 points or 0.46 percent at 20,782.60. About 2007 shares advanced, 988 shares declined, and 90 shares unchanged.

Adani Green Energy announced follow-on funding of USD 1.36 billion to further boost its Construction Financing Framework to USD 3 billion backed by a consortium of renowned international banks.