Closing Bell: Nifty below 24,600, Sensex down 236 pts; IT stocks outperform

Indian equity indices ended lower on December 12 with Nifty below 24,600. At close, the Sensex was down 236.18 points or 0.29 percent at 81,289.96, and the Nifty was down 93.10 points or 0.38 percent at 24,548.70.

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.

Nifty opened marginally in the red and traded with a negative bias during the day. On the daily charts we can observe that the Nifty has been stuck in a narrow range 24500 – 24800 since the past five trading sessions. A decisive move above 24750 shall suggest that the next leg of upmove has resumed. On the downside, 24500 – 24450 is the crucial support zone. As far as derivative data is concerned, 23000 PE and 26000 CE has the highest built up for the 19th December weekly expiry.

In the previous trading session, significant addition in OI was witnessed 24600 strike suggesting that ATM straddles are being created indicating rangebound movement likely. The Nifty Weekly PCR stands at 0.77 which suggests slightly bearish sentiment. The broader market witnessed correction today, with the Midcap and Small Cap index correcting to the tune of 0.46% and 0.97% respectively after rising for 8 – 10 consecutive trading sessions. We expect the Nifty which was consolidating in a range to take the lead from hereon and resume its upmove.

The Nifty slipped below the recent consolidation on the daily chart, indicating a weakening trend in the near term. However, the decline was limited, and the index managed to stay above 24,500.

This sideways consolidation in Nifty may persist for a few more days as the index remains within a defined range. A decisive fall below 24,470 could trigger a meaningful correction in the market. On the higher side, resistance is seen at 24,650-24,700.

Markets closed slightly lower on the weekly expiry day, shedding nearly half a percent amid mixed signals. After an initial uptick, the Nifty gradually declined throughout the session, ending near the day’s low at 24,548.70 level.

Sectorally, most indices saw profit booking, with FMCG and energy being the top losers, though resilience in the IT sector helped limit the losses. Broader indices, which had recently outperformed, also faced profit-taking, declining by 0.5%-1%.

The market awaits a fresh catalyst to resume its rebound, while rotational buying in key sectors like IT and banking keeps recovery hopes alive. Participants should maintain a positive outlook but manage position sizes until Nifty clears the resistance at 24,800. Additionally, given the broader indices’ recent outperformance, traders might consider booking partial profits in the midcap and smallcap segments.

Today, the benchmark indices witnessed profit booking at higher levels, the Nifty ended 93 points lower while the Sensex was down by 236 points. Among sectors, the IT index outperformed today, rallied 0.75 percent, whereas the Media index lost the most, shed over 2 percent.

Technically, after a muted open, market consistently faced selling pressure at higher levels, it also formed a bearish candle on daily charts, indicating a largely negative trend.

We are of the view that the intraday market texture is weak, but fresh sell-off is possible only after a dismissal of 24,500/81000, below which, the market could slip to 25,350-25,300/80500-80300. On the other side, above 24,620/81500, the sentiment could change. Above that level, the market could bounce back up to 24,700/81800. Further upside may also continue, which could lift the index up to 24,775/82000.

Investors traded with caution ahead of the announcement of inflation and IIP data and steadily cut their equity bets. There is lack of confidence amongst investors due to global uncertainty, rising US bond yields fuelling fund outflows, and persisting conflicts in the Middle East and West Asia.

The Index started the weekly expiry trade on a tepid note and gradually compounded its losses to retest its strong support zone of 24,500-24,550 before settling the day at 24,548.70 with a loss of 93.10 points. Barring IT and Metal, all the other sectors ended the day in red with Media and FMCG being the major laggards. Today's fall was triggered due to profit booking in the Broader market segment as Mid and Smallcaps corrected by 0.46% & 0.97%.

Nifty50 has made a bearish candle at the lower end of consolidation and the activity of tomorrow's trade will provide better clarity. On the downside, immediate support is at 24,500 followed by 24,430 (50DMA) whereas the higher side seems to be capped at 24,690.

The market continued to remain range bound ahead of domestic CPI data and weakening rupee. Though inflation is anticipated to drop, investors are maintaining a close vigil on the vegetable prices, which will determine the future rate trajectory. Meanwhile, the Nifty IT index reached a new high after US inflation data met expectations, boosting hopes for a Fed rate cut next week.

Indian rupee ended flat at 84.86 per dollar on Thursday versus previous close of 84.84.

Indian equity indices ended lower on December 12 with Nifty below 24,600.

At close, the Sensex was down 236.18 points or 0.29 percent at 81,289.96, and the Nifty was down 93.10 points or 0.38 percent at 24,548.70. About 1440 shares advanced, 2395 shares declined, and 102 shares unchanged.

Adani Enterprises, Tech Mahindra, IndusInd Bank, Bharti Airtel, Adani Ports were among the top gainers on the Nifty, while losers were NTPC, Hero MotoCorp, HUL, Coal India and BPCL.

Except for IT, all other sectoral indices ended in the red with Media index down 2 percent and FMCG index shed 1 percent.

BSE Midcap index shed 0.5 percent and Smallcap index was down 1 percent.

Shakti Pumps (India) has received a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 25,000 Standalone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps collectively worth Rs 754.30 Crores (inclusive of GST) for the entire state of Maharashtra under Magel Tyala Saur Krushi Pump Scheme.

QIB – 0.52 times

NII - 20.67 times

Retail – 53.15 times

Overall – 15.58 times

QIB – 0.27 times

NII - 2.70 times

Retail – 0.98 times

Overall – 1.15 times

#1 Over next 5-6 years company aims to double pan-India market share from mid-single digit

#2 Improving on-ground presence and strengthening marketing efforts

#3 In seed business, Rallis is envisaged to double revenue over next five years

#4 Management is optimistic about domestic demand during H2FY25 driven by good rabi season

#5 Believe Rallis is on right track for long term, however, execution remains key monitorable

#6 Believe optimism is already priced into stock price

#1 West Asia - E&C prospects continue to look good

#2 Domestic state capex - L&T Remains Selective

#3 Domestic central government capex should pick up hereon

QIB – 2.89 times

NII - 0.33 times

Retail – 0.33 times

Overall – 1.03 times

#1 Believe company’s results have further downside risk driven by weak growth for rail container traffic

#2 There are market share concerns amid rising competition

#3 Think the earnings downgrade cycle is likely to continue

#4 Despite recent correction, see more downside

#5 Company’s H1 volume growth of 6 percent YoY was weak

#6 With current runrate of rail container traffic for Oct/Nov being similar, see guidance as ambitious

Total Subscription: 1.07x, QIBs: 0.27x, NIIs: 2.56x, Retail: 0.9x As Of 2.:24 pm On Day 2

#1 NCLT has appointed NBCC as project management consultant for completion of 16 projects of Supertech Ltd

#2 The tentative construction cost of the projects is about Rs 9445 crore

#3 PMC fees set as 8% including 1% marketing fee

#4 NBCC will complete the projects with 49748 houses in UP, Uttarakhand, Haryana and Karnataka

#1 Cosmos Holdings Pte Ltd is a leading distributor in Singapore, to supply various healthcare and nutraceutical products.

#2 Under the terms of the agreement, Aayush Wellness will provide its flagship nutraceutical products to cater to Singapore’s growing demand for high-quality dietary supplements including effervescent tablets, marine collagen, probiotics, and super greens powders and more in a period of 1 year.

#1 Aster DM: Grant Thornton LLP concludes forensic audit

#2 Aster DM: Audit findings have no impact on financial statements

QIB – 0.03 times

NII - 17.24 times

Retail – 43.26 times

Overall – 12.58 times

QIB – 2.64 times

NII - 0.28 times

Retail – 0.29 times

Overall – 0.93 times

QIB – 0.04 times

NII - 2.26 times

Retail – 0.80 times

Overall – 0.90 times

The Board has approved the issuance of non-convertible debentures (NCDs) worth Rs 2,000 crore on a private placement basis, in one or more tranches.

The Board has approved the enhancement of capital expenditure amounting to up to Rs 177 crore for the company’s brownfield project of electrolyte additives products at the Jhagadia facility.

The Board has approved the issuance of 3.52 crore equity shares at an issue price of Rs 25 per share, amounting to Rs 88 crore, on a preferential basis, to promoters and non-promoters.

Acme Solar has secured a 250 MW Firm & Dispatchable Renewable Energy (FDRE) project in the e-reverse auction held by NHPC, at a tariff of INR 4.56 per unit. This project includes a green-shoe option that could potentially expand its total capacity from the initial 250 MW to 500 MW. With this project, Acme Solar’s total capacity now stands at 6,970 MW.

The company has submitted an application to the Reserve Bank of India for converting the company from a non-banking financial company (NBFC) to a core investment company (CIC).

QIB – 0.03 times

NII - 2.01 times

Retail – 0.76 times

Overall – 0.82 times

QIB – 2.62 times

NII - 0.25 times

Retail – 0.27 times

Overall – 0.91 times

QIB – 0.02 times

NII - 14.19 times

Retail – 39.11 times

Overall – 10.99 times

The company has entered into an agreement with GAIL (India) for the supply of RLNG gas for its upcoming pellet plant for 7 years.

The Board of Directors has approved the offer-for-sale of certain equity shares of company's subsidiary, Greaves Electric Mobility (GEML), in the proposed IPO of GEML.

The company's subsidiary, Reliance NU Suntech, has received a 930 MW solar energy contract with a battery energy storage system (BESS) project from the Solar Energy Corporation of India (SECI) in an e-reverse auction, at a tariff of Rs 3.53 per kWh.

As per the terms of the tender, Reliance NU Suntech will also have to install a minimum storage capacity of 465 MW/1,860 MWh, charged by solar power.

Shares of construction major Larsen and Toubro fell over a percent to Rs 3,870, extending its decline for a third trading session in a row despite Macquarie's 'outperform' rating on the stock citing positive levers for growth.

The international brokerage has assigned a price target of Rs 4,210, an upside potential of over 7 percent from the last close on the NSE. L&T shares' 10 percent rise in year-to-date gains has underperformed the Nifty's 13 percent rise over the same period. The brokerage highlighted that working capital terms in the Middle East remain favourable, prompting L&T to shift senior management personnel to the region. Domestically, L&T continues to be selective about state government capex projects, while central government capex is expected to gain momentum in the second half of the fiscal year. Government projects are anticipated to account for 70-75 percent of order inflows.

With commissioning of this plant, the company's total operational renewable generation capacity increased to 11,434 MW.

Shares of Zaggle Prepaid were sharply lower over 3% in early trade on December 12 after CNBC-TV18 reported that the share placement may take place in the next two weeks, at a discount, and the company may see an equity dilution of 15-16%.

The Qualified Institutional Placement (QIP) of shares is expected to happen at Rs 500-520 per share. The board of Zaggle has already secured an approval for a Rs 950 crore fund raise. This funding is for inorganic growth and strategic investments.

QIB – 2.62 times

NII - 0.21 times

Retail – 0.24 times

Overall – 0.89 times

QIB – 0.03 times

NII - 1.58 times

Retail – 0.67 times

Overall – 0.68 times

The Arbitral Tribunal in Singapore has passed an order in the arbitration between VarrocCorp Holding BV (jointly with Varroc Engineering) and Beste Motors Co (jointly with TYC Brother Industrial Co, TYC). The joint venture between Varroc and TYC (Varroc TYC Corporation) was also made a party to the arbitration proceedings.

As per the order, VarrocCorp Holding BV (the company’s subsidiary) will transfer its 50 percent shareholding in Varroc TYC Corporation (and its JV subsidiaries) to Beste Motors Co for RMB 310.5 million within 45 days of the award. The company is assessing its legal options and, based on legal advice, will decide on the appropriate course of action.

QIB – 0.02 times

NII - 12.36 times

Retail – 33.87 times

Overall – 9.54 times