Closing Bell: Record run continues; Nifty around 20,950, Sensex above 69,600

Benchmark indices ended on a positive note on December 6 with Nifty above 20,900. At close, the Sensex was up 357.59 points or 0.52 percent at 69,653.73, and the Nifty was up 82.60 points or 0.40 percent at 20,937.70.

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.

The Nifty opened on a positive note and consolidated for the day to close in the positive up ~83 points. On the daily charts, we can observe that the bulls have been able to hold on to the gains. It is now trading around the psychological level of 21000 which can provide some resistance over the next few trading sessions. Also on the hourly charts, the momentum indicator has a negative crossover which indicates a loss of momentum on the upside. Considering the sharp runup in the previous few trading sessions a consolidation is highly likely. On the upside 21000 – 21060 shall act as an immediate hurdle zone and 20800 – 20730 shall act as a crucial support zone and should also be kept as a trailing stoploss for the longs on the index.

Bank Nifty also opened on a positive note however it witnessed profit booking at higher levels and closed in the negative. The Bank Nifty is now in a consolidation mode which can happen in the range of 46400 – 47200 over the next few trading sessions.

Index-based buying continued for yet another trading session under the leadership of the Tech stocks. In the mid-session, profit booking in Banking as well as several other stocks had put pressure on the Index to trade lower but late buying in the Metal and select heavyweights helped to recover and to end the session at 20,937.70 with gains of 82.60 points.

The current rally seems weak as Mid and Smallcaps continue to underperform. At record levels, Nifty50 has made a DragonFly DOJI candlestick pattern which generally indicates a reversal of a trend. A close below today's low will confirm a reversal of the trend while on the higher side, the psychological level of 21,000 will act as a resistance.

Markets extended gains for the seventh session in a row and rose nearly half a percent. After the initial uptick, Nifty hovered in a range till the end and finally settled around the upper band of the same at 20,937.65 level. A mixed trend continued on the sectoral front wherein IT, energy and FMCG attracted noticeable buying. The broader indices traded largely in sync with the move and gained nearly half a percent each.

Noticeable traction in the key sectors is fuelling momentum in the index however we can’t ignore the possibility of some consolidation now. Traders should maintain their focus on stock selection as we are seeing a catch-up move in the sectors and stocks that were on the sidelines in recent months. Also, avoid contrarian bets in anticipation of a major decline.

Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in both US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions. A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector. Despite a promising outlook, short-term profit booking may occur due to domestic premium valuation concerns. Further, lingering El Nino risks, a drop in reservoir levels, and reduced sowing may hold RBI to profoundly upgrade H2FY24 growth and reduce future inflation estimates.

Markets surge to new highs on heightened risk appetite as BJP's victories in three out of four Assembly elections boost investor confidence. FPIs, initially cautious due to political uncertainty, re-enter with significant buying activity. Financials and Adani Group companies have led the ~3.5% rally in Indexes this week. India's near-term outlook appears favorable, supported by robust macroeconomic indicators and sustained earnings momentum. The recent drop in crude oil prices alleviates concerns about inflation resurgence. Anticipation of a US interest rate cut early next year can further fuel foreign inflows, reinforcing market momentum.

The 7.6% GDP growth has surpassed the RBI's expectations in Q2 FY24, complemented by consumer inflation comfortably within the RBI's zone of comfort. With these favourable economic indicators, the likelihood of a rate hike in the upcoming MPC is minimal. Despite potential challenges such as a possible uptick in food inflation and a volatile external environment, the RBI is poised to maintain its hawkish stance, keeping the repo rate steady at 6.5% for the fifth consecutive time this year.

The real estate sector's demand is intricately linked to economic conditions and prevailing mortgage rates. A positive economic outlook and stable interest rates create a conducive environment for sustaining home purchases. Notably, in the affordable segment, where demand momentum has trailed the overall residential market, interest rate movements play a pivotal role. Ensuring stable interest rates becomes imperative in this vulnerable segment, serving as a crucial catalyst to address the housing gap and propel the real estate market forward.

Indian rupee ended higher at 83.32 per dollar versus previous close of 83.38.

: Benchmark indices ended on a positive note on December 6 with Nifty around 20,950.

At close, the Sensex was up 357.59 points or 0.52 percent at 69,653.73, and the Nifty was up 82.60 points or 0.40 percent at 20,937.70. About 1659 shares advanced, 1592 shares declined, and 82 shares unchanged.

Wipro, LTIMindtree, ITC, L&T and TCS were among top gainers on the Nifty, while losers were Adani Enterprises, Eicher Motors, Cipla, NTPC and UltraTech Cement.

Most of the sectors ended in the green with capital goods, FMCG, Information Technology, oil & gas and power up 1-2 percent, while bank, healthcare down 0.5 percent each.

BSE midcap and Smallcap indices ended marginally higher.

-Outperform call, target Rs 1,540 per share
-State street is exercising a call option to buy out company’s stake in a JV formed in 2012
-The call option is to provide business operations services
-State street will pay USD 170 million & the net book value
-The payment will be done on the date of closing which is expected to be in April-June 2024
-State street will continue to be a top-15 customer for the company even after this transaction

Indian Rupee appreciated on Wednesday on positive domestic markets and fresh FII inflows. However, the positive tone in the US Dollar and the buying of Dollars by RBI capped sharp gains. The US Dollar gained on haven demand as Moody’s cut China's credit rating to negative. Economic data was mixed with ISM services PMI topping forecast while JOLTS job openings trailed consensus. Weak jobs data bolstered rate-cut bets by the Fed, leading to a rise in global equities.

We expect Rupee to trade with a slight negative bias on positive tone in the US Dollar and fresh foreign inflows. A weak tone in crude oil prices and positive domestic markets may also support Rupee. However, RBI intervention may cap the sharp upside. Traders may take cues from US ADP Trade balance and non-farm employment change data. Investors may remain cautious ahead of RBI’s monetary policy decision on Friday. USDINR spot price is expected to trade in a range of Rs 83.00 to Rs 83.70.

-Underweight call, target Rs 113 per share
-Recently completed corporate reorganisation should free up liquidity of Rs 3,000 crore
-Liquidity is there in company’s infrastructure lending entity
-This liquidity can re-deploy in retail lending at considerably higher loan spreads
-Estimate a 1.7 percent/5.1 percent positive impact on F24/25 profit
-Assuming the Rs 3,000 crore had a negative carry of 1 percent (RoA)
-The liquidity will now earn 3.5 percent RoA on redeployment to retail

The board of directors of Orchid Pharma at its meeting held today, i.e., December 06, 2023 has considered and approved a draft Scheme of Amalgamation and Arrangement between Dhanuka Laboratories and their respective shareholders and creditors.

Indoco Remedies announced the receipt of tentative approval from the USFDA for Abbreviated New Drug Application (ANDA) for Canagliflozin Tablets 100 mg and 300 mg, a generic equivalent of the Reference Listed Drug, Invokana Tablets 100 mg and 300 mg, of Janssen Pharmaceuticals, Inc.

This product will be manufactured by Indoco Remedies Limited, at their manufacturing facility located at Goa (Plant -I) in India.

-Outperform call, target Rs 3,800 per share
-Management meet takeaways show focus on budget-end to outgrow market
-Company reiterates double-digit volume growth expectation for H2FY24
-Low capital intensity aids dealer economics

Adani Group Of Stocks Have Outperformed Nifty 50 over the last 7-days. The group companies have gained anywhere in the range of 14-63%. One stock that has more than doubled investors wealth- Adani Total Gas- rallied more than 60% over the last seven days. The stock also lost the most on year to date basis as much as 70.5% and still trades at 73% discount compared to its 52- week high. Meanwhile, two Adani group companies which scaled 52-week highs were Adani Power and Adani Ports.

Citi has recently reiterated a Buy call on Adani Ports, revising its target price upward to 1,213 per share from 972 per share. According to the foreign brokerage, the company has demonstrated consistent execution and continues to fortify its stronghold in India's port and logistics sector, showcasing sustained growth. Despite Adani Group facing adverse news flow, which has suppressed valuations in CY23, the stock rallied post-election results.

However, Citi believes that there remains significant potential for further valuation re-rating for this stock. Additionally, Adani Ports has upcoming projects nearing commissioning, further enhancing its presence, while its robust logistics business adds to its strength in the market.

Sensex Today | Market at 3 PM

The Sensex was up 415.80 points or 0.60 percent at 69,711.94, and the Nifty was up 97.40 points or 0.47 percent at 20,952.50. About 1651 shares advanced, 1593 shares declined, and 80 shares unchanged.

Sensex Today | BSE Realty index down 0.4 percent dragged by Prestige Estate, Sobha, Brigade Enterprises:

Gold prices rose on Wednesday as the dollar eased and weaker-than-expected U.S. jobs data cemented expectations that the Federal Reserve's policy tightening cycle has come to an end.

Spot gold rose 0.7% to $2,034.09 per ounce by 0817 GMT. U.S. gold futures rose 0.8% to $2,051.50.

Stock Market LIVE Updates | Jefferies View On Power Sector 

-There was broad consensus that peak power shortages are here to stay for 18-24 months at least
-Power demand strength is driven by both industrial and households
-Believe as India enters a phase of capex-driven GDP growth, power intensity should rise 
-Power generation and T&D investments should rise 2.2x to USD 280 billion in FY24-30 vs FY17-23

Axis Bank has filed a petition under the Insolvency and Bankruptcy Code, to initiate Corporate Insolvency Resolution Process (CIRP) of Digital Ventures, the wholly owned subsidiary of Zee Learn Limited, before the National Company Law Tribunal, Mumbai.

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Methylene Blue Injection, 10mg/2ml and 50mg/5ml. Zydus’ Methylene Blue Injection, 10mg/2ml and 50mg/5ml. is the generic version of the Reference Listed Drug (RLD) ProvayBlue Injection.

The Board of Directors of Dalmia Cement (Bharat), the wholly owned subsidiary of the company, has appointed Puneet Yadu Dalmia as Managing Director & CEO for 5 years with effect from December 8, and Mahendra Singhi as Strategic Advisor to Managing Director & CEO with effect from December 9.

The tenure of Singhi as Managing Director & CEO will successfully culminate on December 8 and thereafter, Singhi will act as Non-Executive Non-Independent Director of Dalmia Cement (Bharat) as well as Strategic Advisor to Managing Director & CEO.

SBC Exports has received approval from the Board of Directors for the issue of bonus shares in the ratio of 1:2 (1 equity share for every 2 equity shares held by the existing equity shareholder of the company).

Sensex Today | BSE Bank index shed 0.5 percent dragged by AU Small Finance Bank, ICICI Bank, Federal Bank:

Ravindra Madan Mohan Agrawal has resigned from the Post of Chief Financial Officer (CFO) of Pavna Industries with effect from December 28 due to personal reasons.

NLC India has started bio-mass co-firing operation in its coal based thermal power station NLC Tamilnadu Power (NTPL) at Tuticorin.

Kajaria Ramesh Tiles Limited, Nepal, the joint venture company) has got sanction of loan of Nepalese Rupees Rs 218 crore from the Consortium of Nepalese Banks for setting up the manufacturing facility in Nepal. The company has provided Standby Letter of Credit (SBLC) of Rs 68.12 crore against the said loan in favour of Everest Bank, the lead bank of the consortium of Nepalese Banks.

Sensex Today | BSE Auto index down 0.5 percent dragged by Eicher Motors, Bajaj Auto, Hero MotoCorp:

Oberoi Realty has registered conveyance deed of the land parcel of approximately 6.4 acres in its favour and also taken possession of the said property. The total consideration for acquisition of the said property is Rs 196 crore, which has been paid in its entirety. With this, the company has completed the acquisition and consolidation of contiguous pieces of lands admeasuring 75 acres at Pokhran, Thane, Maharashtra. Company had entered into a Memorandum of Understanding with NRB Bearings for acquiring the land at Pokhran.

Lloyds Enterprise Limited (LEL) announced its foray into the real estate sector through the planned acquisition of a 60% stake in Lloyds Realty Developers Ltd (LRDL).

Valued at Rs 110 crore, this all cash investment (into equity of Lloyds Realty Developers Limited) marks a pivotal moment for LEL as it endeavours to strengthen its presence in the realty business.

Power Grid Corporation of India has been declared as successful bidder under Tariff Based Competitive Bidding to establish Inter-State Transmission System Project for “Transmission Scheme for Integration of Renewable Energy Zone (Phase-II) in Koppal-II (Phase-A & B) and Gadag-II (Phase-A) in Karnataka” on build, own, operate and transfer (BOOT) basis.

Hero MotoCorp and Ather Energy have entered into a partnership for an interoperable fast-charging network in India.

Through this collaboration, EV users will be able to seamlessly use both VIDA and Ather Grids across the country. The combined network will cover 100 cities with over 1900 fastcharging points.

Sensex Today | Market at 1 PM

The Sensex was up 250.59 points or 0.36 percent at 69,546.73, and the Nifty was up 50.40 points or 0.24 percent at 20,905.50. About 1622 shares advanced, 1564 shares declined, and 93 shares unchanged.

HDFC Bank has sought approval from the shareholders for re-appointment of Sashidhar Jagdishan as the Managing Director & Chief Executive Officer of the bank, and appointment of V Srinivasa Rangan as an Executive Director of the bank. The bank also sought approval from shareholders for re-appointment of M D Ranganath, and Sandeep Parekh as an Independent Directors on the board.

Lakshay Kataria has resigned as Chief Financial Officer and Key Managerial Personnel of JB Chemicals and Pharmaceuticals, due to personal reasons. Lakshay Kataria ceased to be the Chief Financial Officer of the company with effect from November 30.

Foreign investor Government of Singapore has bought 20,19,694 shares in Sapphire Foods via open market transaction at an average price of Rs 1,400 per share, whereas Arinjaya (Mauritius) sold 27 lakh shares at an average price of Rs 1,400.01 per share.

SBI Life Insurance Company bought 20 lakh shares in Swan Energy and Europe-based financial services company Societe Generale purchased 18 lakh shares in the firm at an average price of Rs 414 per share, which in total amounted to Rs 157.32 crore. However, 2I Capital PCC sold 30 lakh shares sold in Swan at an average price of Rs 414 per share, Kasturi Vintrade offloaded 23,80,481 shares at an average price of Rs 432.28 per share, and Ares Diversified sold 54,99,319 shares at an average price of Rs 414.09 per share.

Sensex Today | Nifty Information Technology index up 1 percent led by LTIMindtree, Wipro, L&T Technology:

Ashok Leyland had invested 62.87 million pound (approximately Rs 662.5 crore) in Optare Plc, UK via equity shares as first tranche. Consequent to the allotment by the board of directors of Optare Plc, the shareholding of Ashok Leyland in Optare Plc has increased from 91.63% to 92.19%. On November 9, Ashok Leyland had decided to invest Rs 1,200 crore in Switch Mobility as equity through its holding company Optare Plc. Optare Plc is the holding company of Ashok Leyland's EV initiatives - Switch Mobility, UK and Switch Mobility Automotive.

-Buy call, target Rs 2,990 per share
-Company will commission phase I PV module and storage capacity mid-CY24
-Chinese overcapacity has weighed on renewable equipment profitability globally
-Government's ambitious installation target, lower bidding intensity should aid economics
- Government's Basic customs duty (BCD) on Chinese imports should aid economics
-Possible exports to the US at premium prices should aid economics
-See little value being imputed to renewables in CMP

The Office of Nominated Authority, Ministry of Coal, Government of India vide its Final Compensation Order dated December 5, 2023 has determined the valuation of compensation of free hold and lease hold land pertaining to Utkal 'C' Coal Mines at Rs 3,52,89,70,761 payable to company's subsidiary viz Utkal Coal Limited (UCL).

The compensation towards valuation of Mine Infrastructure is under progress.

Promoter and logistics services provider Gateway Distriparks has bought 8.5 lakh shares in Snowman at an average price of Rs 59.23 per share.

Sensex Today | BSE Capital Goods index up 1 percent led by Hindustan Aeronautics, Bharat Electronics, Schaeffler India:

-Bajaj Auto has higher valuations, though it’s still at a discount to its long-term averages
-Still a case for strong upside in two-wheelers
-Hero trading at about 18-19x FY24 about 17x FY25
-Anticipating earnings growth of 38% for the current year
-Anticipating strong and accelerating demand for two-wheeler companies in the next two quarters.

US-based private equity firm TPG Asia SF V Pte Ltd sold 1,67,56,351 equity shares in Shriram Properties at an average price of Rs 113.4 per share, amounting to Rs 190.01 crore. However, Tara Emerging Asia Liquid Fund bought 8,84,956 shares in Shriram Properties at an average price of Rs 113 per share, BNP Paribas Arbitrage 10,77,776 shares at an average price of Rs 116.01 per share and OHM Enterprises picked 9,90,000 shares at an average price of Rs 113.71 per share.

Zydus Lifesciences shares gained 1.6 percent after the firm’ US-based arm Sentynl Therapeutics assumed full responsibility for the development and commercialization of CUTX-101, candidate for the treatment of Menkes disease, from Cyprium Therapeutics.

Sentynl announced the execution of an assignment and assumption agreement with Cyprium Therapeutics, a Fortress Biotech subsidiary company. Under the agreement, Cyprium completed the transfer of its worldwide proprietary rights and US FDA documents pertaining to CUTX-101, the copper histidinate product candidate for the treatment of Menkes disease, to Sentynl.

As of 11.30 am, shares of the company were quoting Rs 640 apiece on the NSE, higher by almost one percent from the previous session’s closing price.

Shares of Angel One shot up over 10 percent to a 52-week high of Rs 3,245.05 in the early trade on December 6 after the stock broker recorded a 51.3 percent on-year surge in its client base during November.

The company's client base rose to 1.85 crore in November, reflecting a near 4 percent rise as compared to the previous month.

Number of orders also rose 51.4 percent on year to 10.72 crore in November. As compared to the previous month, the number of orders grew 1.2 percent. Read More

The operations at MDF plant at Chittor in Andhra Pradesh have been disrupted since December 4 due to cyclone Michaung. The company is taking adequate steps to ensure resumption of operations of the plant at the earliest. During the aforesaid period, the company will continue to service the customers uninterruptedly from the inventory of finished goods subject to logistics availability.

There is a strong likelihood that RBI-MPC will keep the benchmark repo rate unaltered at 6.50% in the upcoming meeting and thereby continue with the “pause” mode for the fifth consecutive policy review. It’s also unlikely that there will be any revision in the monetary policy stance of “Withdrawal of accommodation”.

We will look forward to RBI’s assessment of growth and inflation in its statement. GDP growth in the second quarter of the year has been significantly higher than market and RBI’s forecasts at 7.6% YoY, translating to a robust growth of 7.7% YoY in H1FY24. Given the stronger growth momentum, there is a possibility that RBI revises it GDP forecast for the current year by 25-30 bps from the existing figure of 6.50%.

Sensex Today | BSE FMCG Index up 1 percnet supported by Adani Wilmar, Gujarat Ambuja Exports, Parag Milk Foods:

Sanghvi Motors announced that Bombay High Court rejected the appeal filed by VAT/ Sales Department filed against the company.

Assistant Commissioner of Sales Tax slapped demand notice against the company in 2015 for VAT liability of Rs 120.26 crore for “transfer of right to use the goods".

Power Grid Corporation of India received LOI to establish Inter-State Transmission System Project for “Transmission system for evacuation of additional 7 GW of RE power from Khavda RE park under Phase III Part B”. The work comprises the establishment of a new 765/400kV switching station at Vataman in Ahmedabad district.

Force Motors produced 2216 total units in November 2023. Domestic sales came in at 1732 units while exports were at 339 units.

Techknowgreen Solutions secured Rs 18 crore work order from Duet India Hotels (Navi Mumbai), surpassing the company’s FY23 turnover. The work will cover 7,285 square meters at TTC Industrial.

Axiscades Technolgoies acquired 100 percent stake in Epcogen for Rs 26.25 crore. Epcogen engages in engineering design and solutions for energy space.

GRM Overseas announced the appointment of Atul Garg as MD of GRM Foodkraft, subsidiary of the company. Atul Garg will hold the post for 5 years.

Bank of India announced QIP with a floor price of Rs 105.42 per share. The Bank also announced its Capital Issue Committee is meeting on December 8 to consider and determine the issue price, including any discount.

SBI is acquiring 20 percent stake held by SBI Capital in SBI Pension Funds for Rs 229.5 crore.

With this transaction, SBI’s stake in SBI Pension Funds will reach 80 percent.

SBI said the RBI and PFRDA has approved the acquisition and the acquisition will be completed on December 15.

Sensex Today | BSE Oil & Gas index up 1 percent supported by Adani Total Gas, Petronet LNG, Reliance Industries

Oil and Natural Gas Corporation Limited (ONGC) has issued notification of award to the company for deployment of its rig Jindal Supreme on its subsequent contract for a period of three years at effective day rate (EDR) of USD 86,327.

The current contract of Rig Jindal Supreme with ONGC is at an EDR of USD 39,578.78 and the same is expected to conclude in Q4 FY24.

Sensex Today | BSE Bank index down 0.5 percent dragged by ICICI Bank, Canara Bank, AU Small Finance Bank

Lupin has received approval from the United States Food and Drug Administration (USFDA) for its abbreviated new drug application for Varenicline tablets, 0.5 mg and 1 mg, to market a generic equivalent of Chantix Tablets, 0.5 mg and 1 mg, of PF Prism C.V.

The product will be manufactured at Lupin’s Pithampur facility in India.

Varenicline Tablets are indicated for use as an aid to smoking cessation treatment.

EaseMyTrip.com partners with Vi, the leading telecom operator, in continuous endeavour to build more value for its users. In this partnership, EaseMyTrip will offer Vi customers to avail exclusive deals in flights, hotels, trains, buses, and cab bookings on the Vi App.

Shares of Ion Exchange (India) soared 3.5 percent in opening trade to hit a 52-week high of Rs 602 on December 6 after the company received a favourable verdict in an arbitration case filed by Ethigen Inc.

Ethigen Inc had filed an arbitration claim of $18,00,000 or Rs 149.56 crore for damages against Ion Exchange, alleging wrongful termination and breach of terms of the agreement.

The International Chamber of Commerce (ICC) tribunal has delivered the arbitration award, rejecting Ethigen's claim for damages against Ion Exchange and also rejecting all other claims and requests of the parties. Read More

Deepak Chemtex stock made an impressive debut, listing at an 99.5 percent premium to the IPO price on December 6. The stock opened at Rs 159.60 against the issue price of Rs 80 on BSE SME. Read More

AMIC Forging stock made a bumper debut, listing at an 99 percent premium to the IPO price on December 6. The stock opened at Rs 251.35 against the issue price of Rs 126 on BSE SME. Read More

Sensex Today | Market at 10 AM

The Sensex was up 273.48 points or 0.39 percent at 69,569.62, and the Nifty was up 80.60 points or 0.39 percent at 20,935.70. About 1655 shares advanced, 1328 shares declined, and 99 shares unchanged.

The share price of Power Grid Corporation of India gained nearly 1 percent to hit a 52-week high of Rs 226 in early trade on December 6 after the company was declared as a successful bidder for a project from the Khavda RE park.

"We have been declared as a successful bidder under tariff-based competitive bidding to establish inter-state transmission system project for 'transmission system for evacuation of additional 7 GW of RE power from Khavda RE park under Phase III Part B' on a build-own-operate-and-transfer (BOOT) basis," it said. The company received the Letter of Intent (LoI) on December 4, 2023.

The project involves setting up a 765/400kV switching station at Vataman in Ahmedabad district, three 765kV D/c transmission lines (including a LILO line) traversing in Gujarat as well as extension works at Navsari and Halvad substations.

Sensex Today | BSE Power index gained 2.5 percent supported by Adani Green Energy, Adani Energy, Adani Power: