Closing Bell: Sensex flat, Nifty above 24,600; auto, IT, FMCG gain, PSU banks drag

Indian benchmark indices ended with marginal gains on December 11 with Nifty above 24,600. At close, the Sensex was up 16.09 points or 0.02 percent at 81,526.14, and the Nifty was up 31.75 points or 0.13 percent at 24,641.80.

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 markets remained range-bound for the fourth consecutive session, closing with minimal change. After a flat opening, the Nifty climbed in the first half but faced resistance near the 24,700 mark, limiting further gains. Sectoral trends were mixed, with FMCG, auto, and IT posting modest gains, while energy and banking saw slight declines. Notably, broader indices extended their upward momentum, with the small-cap index hitting a fresh record high.

We anticipate the consolidation phase to conclude soon, with the Nifty likely to surpass the 24,800 resistance level. While sectoral participation remains selective, the banking and IT sectors are expected to play a pivotal role in driving the next leg of the rally. Meanwhile, traders are advised to maintain a "buy on dips" strategy, focusing on prudent stock selection.

The range bound action continued in the market for the fourth consecutive sessions on Wednesday and Nifty closed the day higher by 31 points. After opening with a slightly positive note, the market moved into a narrow high low range (around108 points) that lasted for the whole session.

A small positive candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicates a continuation of range bound action in the market. Nifty sustained above the daily 10/20 period EMA and the positive chart pattern like higher highs and lows is intact.

The short-term trend of Nifty continues to be range bound. If Nifty fails to break above the upper range of 24700-24800 levels in the next 1-2 sessions, then one may expect small dip before bouncing back again from the higher lows. Immediate support is at 24500 levels.

The rangebound trade comes to an end on a positive note at 24,641.80 with gains of 31.75 points. Among the sectors, FMCG and Auto were the outperformers while PSU Banks and Media corrected the most. Mid and Smallcaps advanced by 0.27% & 0.38% and outshined the Benchmark Index. The Index is oscillating in a tight range of 24,550-24,690, and a breakout on either side would provide a directional move to the market.

Nifty opened on a positive note and continued to trade within a narrow range to close in the green up ~32 points. on the daily charts we can observe that the Nifty has been stuck in a narrow range 24500 – 24800 since the past four trading sessions. We expect this rangebound action to continue. A decisive move above 24750 shall suggest that the next leg of upmove has resumed.

On the downside, 24500 is the crucial support level and a stoploss for the long positions. As far as derivative data is concerned, 24500 PE and 24600 PE added decent OI suggesting a strong support base. The highest Built up on the call side is placed at 24700 followed by 25000. The Nifty Weekly PCR stands at 0.71, which is unchanged from the previous session and is suggesting a slightly bearish sentiment. However, the price action suggests a rangebound price movement.

The Indian market exhibited subtle movements, reflecting mixed sentiments prevailing in global markets ahead of the US CPI inflation data release, which could influence the FED policy. The US dollar strengthened, while bond yields saw a marginal uptick.

Defensive sectors, including FMCG and pharmaceuticals, experienced an uptick. Additionally, the metals sector saw gains driven by optimism surrounding potential stimulus measures from China.

Indian rupee ended flat at 84.84 per dollar on Wednesday versus Tuesday's close of 84.85.

Indian benchmark indices ended with marginal gains on December 11 with Nifty above 24,600.

At close, the Sensex was up 16.09 points or 0.02 percent at 81,526.14, and the Nifty was up 31.75 points or 0.13 percent at 24,641.80. About 2053 shares advanced, 1772 shares declined, and 109 shares unchanged.

Trent, Bajaj Finance, Britannia Industries, Shriram Finance, Bajaj Finserv were among the top gainers on the Nifty, while losers included JSW Steel, Adani Ports, NTPC, SBI, Axis Bank.

BSE Midcap and smallcap indices rose 0.3 percent each.

On the sectoral front, buying was seen in the auto, FMCG, IT, metal, while PSU Bank index down nearly 1 percent.

Shakti Pumps (India) has received a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited for 25000 Stand-alone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps for the entire state of Maharashtra under Magel Tyala Saur Krushi Pump Scheme.

The total value of the 25000 pumps is around Rs 754.30 Crores (inclusive of GST) which is to be executed within 60 days from the issuance of NTP/work order.

Indian Rupee touched a fresh all-time low of 86.87 as change of guard at the Reserve Bank of India raised odds of a rate cut by the RBI in its February meeting. A bounce back in the US Dollar from earlier lows also weighed on the Rupee. However, positive domestic markets, FII inflows and reports of RBI intervention supported Rupee earlier in the day.

We expect Rupee to trade with a negative bias on strength in the US Dollar and a rise in global crude oil prices. However, positive domestic equities and FII inflows may support the Rupee at lower levels. Any further intervention by the RBI may also support the Rupee.

Investors may remain cautious ahead of US inflation data. Inflation is expected higher than the previous month. USDINR spot price is expected to trade in a range of Rs 84.65 to Rs 85.10.

The Sensex was up 5.39 points or 0.01 percent at 81,515.44, and the Nifty was up 23.55 points or 0.10 percent at 24,633.60. About 1868 shares advanced, 1590 shares declined, and 80 shares unchanged.

QIB – 0.0 times

NII - 4.97 times

Retail – 20.08 times

Overall – 5.01 times

QIB – 0.0 times

NII - 0.59 times

Retail – 0.41 times

Overall – 0.33 times

The board of directors of Diamond Power Infrastructure at its meeting held on December 11, 2024, has approved the acquisition of identified machineries and related equipments from Syska Miterr, Miter & Miter Engineers, Emdet Engineers, Miter and Miter for an aggregate consideration not exceeding Rs 49,74,00,000 plus applicable taxes and to execute the assets purchase agreement of the Company.

QIB – 2.07 times

NII - 0.09 times

Retail – 0.13 times

Overall – 0.66 times

#1 M&M, TVS & Eicher Motors remain preferred buys

#2 Valuations are not cheap for most stocks but multiples will remain elevated

#3 Despite sharp valuation re-rating in M&M in 2024, stock trades at 24x FY26 core biz earnings

#4 Find M&M attractive in context of 19% EPS CAGR over FY24-27 & rising market share

#5 TVS with 35x FY26 P/E is highest among covered OEMs

#5 Expect TVS Motor to deliver highest EPS CAGR at 30% over FY24-27

#6 Believe Eicher Motors, after 40% underperformance vs Nifty Auto since Jan ‘23, is attractive

Shares of Bajaj Finance are higher by over 2.8% on December 11, a day after its investor meet where the company shared an upbeat guidance on customer franchise and talked about the Long-Range Strategy and AI pivot with analysts.

Rajeev Jain, MD, Bajaj Finance said the NBFC aims to become BFL 3.0 – powered by fintech and AI - in its pivot over the next 4-5 years. "BFL is currently implementing 29 GenAI use cases across 25 work streams, which will deliver an annual cost save of Rs 150 crore in FY26 alone. But more importantly, GenAI adoption has helped us build a much clearer strategic roadmap," Bajaj Finance said in its presentation to investors. Read More

Shares of Bharat Global Developers are locked at 5% upper circuit after securing a Rs 650 crore annual contract from Tata Agro and Consumer Products for supplying premium agricultural commodities.

The contract involves 'continuous supply of significant terms and conditions of premium agricultural commodities on demand, executed on a phased basis throughout the year', the company said in an exchange filing on December 11. Payment terms include 'periodic settlements aligned with delivery schedules', the company added.

The agricultural commodities include tea leaves, coffee beans, organic pulses, and dry fruits, among other items. The company now claims to have an order book now of over Rs 1,500 crore.

Tivolt Electric Vehicles, the EV arm of the Murugappa Group and a subsidiary of TI Clean Mobility, has entered into a Memorandum of Understanding (MoU) with Tata Power Renewable Energy with aims to bolster e-mobility for commercial vehicles nationwide by combining Tata Power's extensive expertise in EV charging infrastructure with Tivolt’s expanding fleet of small electric commercial vehicles. Together, they seek to establish a strong and sustainable EV charging ecosystem across the country.

The Sensex was up 79.15 points or 0.10 percent at 81,589.20, and the Nifty was up 42.15 points or 0.17 percent at 24,652.20. About 1877 shares advanced, 1555 shares declined, and 89 shares unchanged.

#1 Company bagged orders for 10,400 MW of projects in FY25

#2 Expect revenue/EBITDA to grow at CAGR of 30/103 percent through FY24-FY27

QIB – 0.0 times

NII - 3.56 times

Retail – 15.50 times

Overall – 3.79 times

QIB – 0.0 times

NII - 0.06 times

Retail – 0.11 times

Overall – 0.07 times

#1 There are indications that ordering in key areas of company will start ramping up in coming months

#2 Company is also close to finalising plans for an inorganic acquisition for simulator or anti-drone business

QIB – 0.0 times

NII - 0.39 times

Retail – 0.32 times

Overall – 0.24 times

#1 DMart’s competitive moat is facing increasing pressure

#2 Increasing price discounts to maintain competitive advantage

#3 DMart’s growth headroom is outside the top 10 cities

#4 Cut our FY25/26/27 earnings estimate by 4.2 percent/6.2 percent/6.1 percent, accounting for lower revenue growth

The operations and finance committee of board of directors of Paisalo Digital in their meeting held on Wednesday, December 11, 2024 has approved the issuance of Commercial Papers (CPs) each having face value of Rs 5,00,000 in one or more tranches aggregating upto Rs 90,00,00,000 on a private placement basis and approved the allotment of 600 listed commercial papers (CPs) of the Face Value of Rs 5,00,000 each aggregating of Rs 30,00,00,000 through private placement basis.

Greaves Retail, a division of Greaves Cotton, has launched its new range of high-performance electrified light construction equipment at bauma CONEXPO India 2024.

The Reserve Bank of India has approved the reappointment of Banavar Anantharamaiah Prabhakar as part-time Chairman of Ujjivan Small Finance Bank for three years, effective November 23, 2024.

#1 Company expects revenue growth of 12-13 percent annually over next few years

#2 Margins projected to remain strong at 15-16 percent

#3 Tonnage growth is estimated at 8-10 percent with efforts underway to accelerate this further

#4 Company is investing heavily in infra, with plans to invest Rs 250 crore for 25-acre hub in Bengaluru

#5 Despite ongoing capex toward trucks & hubs, debt levels are expected to remain stable

The Sensex was up 171.94 points or 0.21 percent at 81,681.99, and the Nifty was up 62.85 points or 0.26 percent at 24,672.90. About 2002 shares advanced, 1374 shares declined, and 90 shares unchanged.

INOXGFL Group today announced its foray into solar manufacturing through Inox Solar, a privately held entity by the promoters.

QIB – 0.0 times

NII - 1.80 times

Retail – 8.69 times

Overall – 2.07 times

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The Board of HGS CX Technologies Inc, a wholly owned subsidiary of Hinduja Global Solutions, has approved the merger of its five wholly owned US subsidiaries into itself. These subsidiaries include Hinduja Global Solutions LLC, HGS Digital LLC, HGS (USA) LLC, HGS Canada Holdings LLC, and Teklink International LLC.

The company has received a GST notice with a penalty order of Rs 64.5 crore from the Commissioner of GST and Central Excise, Belagavi division. This pertains to the non-payment of GST under the Reverse Charge Mechanism for upfront and monthly payments made to the government for mining rights between July 2017 and July 2019 in Karnataka. JSW Steel plans to challenge the penalty demand.

#1 DMart’s competitive moat is facing increasing pressure

#2 Increasing price discounts to maintain competitive advantage

#3 DMart’s growth headroom is outside the top 10 cities

#4 Cut our FY25/26/27 earnings estimate by 4.2 percent/6.2 percent/6.1 percent, accounting for lower revenue growth

The company has signed a share purchase agreement with SPR Engenious to sell its 30 percent stake in TGPEL Precision Engineering for Rs 66 crore. SPR Engenious is a subsidiary of Shriram Pistons & Rings.

Travel Food Services Ltd (TFS) has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) to raise up to Rs 2,000 crore.

The IPO is a pure offer-for-sale by the Kapur Family Trust, which currently holds a 51% stake in the company, while SSP Asia Pacific Holdings owns the remaining 49%. Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and Batlivala & Karani Securities are the lead managers for the issue.