Closing Bell: Sensex falls 385 pts, Nifty below 24,700; IT, metal drag, realty, media shine

Indian equity indices ended on a negative note on December 16 with Nifty below 24,700. At close, the Sensex was down 384.55 points or 0.47 percent at 81,748.57, and the Nifty was down 100.05 points or 0.40 percent at 24,668.25.

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 remained range-bound during the session, trading within the bands of 24,600 and 24,800. The sentiment remains positive for the short term as the index sustains above the critical moving average on the daily timeframe. On the higher end, the index may continue its upward movement towards 25,000 and beyond in the short term. On the lower end, crucial support is placed at 24,500.

Domestic equities took cues from Asian and European indices and ended negative, as investors await the outcome of the US FOMC meeting on rate decision later this week. Although a rate cut is on the cards, there is lack of confidence amongst the investors due to the sluggish Chinese economy and concerns ahead of Trump's decision on import tariffs from key economies.

Markets began the week on a subdued note, following a volatile session on Friday, and ended with a loss of nearly half a percent. After an initial decline, the Nifty gradually drifted lower in the first half and then traded within a range for the rest of the session. Sectoral trends were mixed, with gains in realty and pharma offset by declines in metal, IT, and energy. Meanwhile, broader indices outperformed the benchmark, each advancing over half a percent.

The Nifty continues to face resistance around the 24,800 level, with intermittent spikes in the volatility index (India VIX) adding to the challenges for bulls. Despite this, we recommend maintaining a positive bias in the index, given the overall strength in banking and IT majors. Traders should look to capitalize on intermediate dips by adding quality stocks from outperforming sectors while carefully managing position sizes.

Nifty opened on a flat note and thereafter traded with negative bias during the day to close in the red down ~100 points. On the daily charts we can observe that after the sharp upmove in the previous session the Nifty consolidated within a narrow range, we believe that this is a brief pause in the overall uptrend.

On the upside the short-term target is placed at 25125 while crucial support is placed at 24550 – 24500. Dips towards the support zone should be considered as a buying opportunity.

The national market traded in a range-bound manner while the realty sector outperformed in expectation of growing demand and a potential rate cut cycle in 2025. A rise in manufacturing and service PMI suggests a positive turnaround in H2FY25 earnings, which may limit further downgrades in FY25 earnings. Rising US 10-year bond yields and a strengthening dollar led investors to remain watchful of the upcoming US Fed policy and its commentary for 2025 rates.

Indian equities commenced the week on a subdued note and correction in the select heavyweights dragged the Index lower; however, some recovery was observed from the lower levels which helped the Index to settle the trade at 24,668.25 with a loss of 100.05 points. Among the sectors, Realty was the top gainer by advancing over 3% followed by Media whereas Metal was the major underperformer while the IT sector witnessed a round of profit booking after a stellar rally.

The interest of market participants remained in the Broader markets as Mid and Smallcaps soared over 0.60% and outperformed the Benchmark Index. The trading range of the Index is widened to 300 points i.e. 24,500-24,800 and for a directional trend breakout on either sides is necessary.

Indian rupee ended 8 paise lower at 84.87 per dollar on Monday versus Friday's close of 84.79.

Indian equity indices ended on a negative note on December 16 with Nifty below 24,700.

At close, the Sensex was down 384.55 points or 0.47 percent at 81,748.57, and the Nifty was down 100.05 points or 0.40 percent at 24,668.25. About 2220 shares advanced, 1748 shares declined, and 94 shares unchanged.

Titan Company, TCS, Hindalco Industries, Adani Ports and BPCL were among the top losers on the Nifty, while gainers included Dr Reddy's Labs, IndusInd Bank, Bajaj Finance, Power Grid and HDFC Life.

BSE Midcap and smallcap indices were up 0.5 percent each.

Among sectors, realty index was up 3 percent, media index rose 1.5 percent and PSU Bank index gained 0.5 percent, while IT, metal, oil & gas shed 0.5-1 percent.

#1 BFSI vertical has seen uptick in demand & continues to hold

#2 Retail, consumer goods, healthcare, and manufacturing are seeing pick up in deals

#3 Tech vertical is a mixed bag, with some accounts performing well while others tighten budgets

#4 Margin improvement targets are being deferred to prioritise other strategic initiatives

#5 Margin levers – SGA optimisation, pyramid correction, operational cost

#6 Company has done enough work to be comfortable that they will meet targets

#1 CHMP recommendation for Zefylti - positive development

#2 Significant investments aimed at new lever for growth

#3 Company remains a preferred pick

Indian Rupee declined on Monday on weak domestic markets and rising US bond yields. However, a soft US Dollar cushioned the downside. India’s WPI eased to 1.89% in November from 2.36% in the previous month.

We expect Rupee to trade with a negative bias on rising odds of a rate cut by the FOMC and weak tone in the domestic markets. Elevated crude oil prices may also weigh on the Rupee. However, FII and cooling off inflation may support the Rupee at lower levels. Traders may take cues from PMI and Empire State Manufacturing Index data from the US. Investors may watch out for the FOMC meeting decision later this week. USDINR spot price is expected to trade in a range of Rs 84.65 to Rs 85.05.

#1 Company is doubling down on key verticals – telecom, mfg (particularly automotive & industrial)

#2 Company is doubling down on key verticals – BFSI, healthcare & life sciences

#3 Focus is more on building capabilities in cloud, AI & automation, enterprise applications

#4 Key margin levers are – pyramid improvement, pricing optimization, reducing subcontracting costs, improving utilisation rates

Asian stocks declined on Monday to head for a consecutive session of losses, dragged by shares in mainland China after the country’s retail sales data came below expectations.

The WPI inflation eased to 1.9% in November from 2.4% in October. The moderation in the WPI inflation was primarily on the account of a decline in food inflation. The arrival of fresh harvests has led to a seasonal correction in food prices. The outlook for agriculture remains positive, with good Kharif production. Prospects for Rabi sowing remain conducive with healthy reservoir levels and good soil moisture from prolonged monsoons. Meanwhile, inflation in manufactured goods remained subdued in November, rising slightly to 2% due to an unfavourable base effect from the previous year. Deflation in the fuel and power sector persisted, continuing the trend observed over the past four months.

Subdued global commodity prices amid concerns over global demand should keep WPI inflation at a comfortable level. In November, the Bloomberg commodity price index declined by 4.7% YoY, and Brent crude prices fell by 9.4% YoY. However, it is crucial to monitor geopolitical developments closely, as these could significantly influence global commodity markets and supply chains. We expect the WPI inflation to remain largely benign over the next couple of averaging 2.3% in Q3 FY25. For FY25, the WPI inflation is projected to average around 2.5%.

#1 BSNL project is expected to be stable to slight decline in Q3 & start tapering off post that

#2 Smaller discretionary deals are emerging but face RoI scrutiny

#3 Mega deals are being divided into smaller contracts

#4 UK & Europe has softer demand compared to North America

#5 Company aims to achieve an aspirational margin band of 26-28 percent

#6 Reduced subcontracting costs is a result of strategic decisions rather than market conditions

The Fitment Committee may issue clarifications on the applicability of the 22% cess on certain utility vehicles (UVs) from July 26, 2023, onward. These recommendations aim to resolve disputes over GST dues raised on SUVs.

#1 Several central and state GST authorities had issued tax claims to auto companies.

#2 SIAM had made representations to the Finance Ministry regarding the matter.

India's Wholesale Price Index (WPI) has decreased to a three-month low of 1.89% in November, primarily due to a decline in food price inflation, which moderated to 8.63% compared to 13.54% in October 2024. This positive trend in food prices is expected to continue, supported by a favorable crop season, which should further reduce food inflation in the coming months.

Given the recent Consumer Price Index (CPI) and WPI figures, we anticipate that the Reserve Bank of India will initiate a rate cut cycle during its February meeting. This strategic move could help support economic growth while managing inflation effectively.

Amrit Singh has resigned as CEO of the specialty business of the company, effective February 10, 2025, to pursue interests outside the company.

Going forward, Nitin G. Kulkarni, Managing Director, will directly oversee the specialty business with the assistance of relevant team members.

R. Janakiraman has also resigned as Chief Supply Chain Officer of the company, effective December 31, 2024.

#1 CFO says 85-90 percent of the volume deceleration was due to cyclical factors

#2 Volume weakness not suggestive of structural demand challenges

#3 Company expects soaps volume growth to return to normative levels over the next two quarters

#4 H1 is expected to see a quicker recovery if seasonality stays normal in Q4 by the company

#5 Post sharp selloff find risk reward is more reasonable & expect company to outperform peers hereon

The Sensex was down 436.95 points or 0.53 percent at 81,696.17, and the Nifty was down 120.30 points or 0.49 percent at 24,648. About 2021 shares advanced, 1562 shares declined, and 94 shares unchanged.

#1 Partnership between Max Life & Axis Bank has led to company name & brand change to Axis Max Life Ins

#2 The refresh identity could enhance brand-recall, especially in tier ii/iii markets where bank's brand is strong

#3 Norms on Banca will be watched; Axis drives 45 percent of APE

#4 Valuations at 8x P/VNB is attractive

#1 Factored in Lower Kumiai Agchem revenue growth guidance while guiding for lower growth in Q2

#2 Company sees no impact on margin with raw material prices softening

#3 New products should drive growth in FY26

#4 Cut FY26/27 revenues 3 percent/5 percent leading to 4 percent/5 percent cut to FY26/27 EPS

#5 Project 10 percent EPS CAGR over FY24-27

DroneAcharya Aerial Innovations announces its expansion into the Middle East with the incorporation of its wholly-owned subsidiary DRONE ENTRY AERIAL SERVICES L.L.C. in Abu Dhabi, UAE.

TT board approved sub-division/ split of existing equity shares of the company from one equity share having face value of Rs 10 each, fully paid-up, into ten equity shares having face value of Re 1 respective, fully paid-up, subject to approval of the shareholders.

The board has given its approval for the company to raise funds of up to Rs 400 crore via a qualified institutions placement (QIP).

The company's subsidiary, Kalyani Strategic Systems, has entered into a Cornerstone Investment Agreement with Edgelab SpA, Italy, for the acquisition of a 25% stake in Edgelab for 2.5 million euros, pursuant to its proposed initial public offering.

The company's subsidiary, CuraTeQ Biologics, has announced that the Committee for Medicinal Products for Human Use (CHMP) within the European Medicines Agency (EMA) has adopted a positive opinion for Zefylti (BP13, a filgrastim biosimilar), recommending the granting of marketing authorization. Zefylti is used for the treatment of neutropenia and the mobilization of peripheral progenitor cells (PBPCs).

Waaree Power Private, a wholly owned subsidiary of Waaree Energies, has executed a share subscription cum shareholders agreement with Ewaa Renewable Techno Solutions (ERTSPL) and existing shareholders of ERTPL namely, Rajjat Kumar Bothra and Nitin Bothra for acquisition of shares in CVPL, to acquire 55% stake in ERTSPL.

The Government of Gujarat has allotted land to the company in three districts (Vadodara, Surat, and Tapi) for the expansion of oil palm cultivation under the National Mission on Edible Oils - Oil Palm (NMEO-OP).

Gold prices are likely to trade steady and may see some consolidation as focus turns on the key central bank policy meeting outcome starting with U.S. Federal Reserve on Wednesday, followed by Bank of Japan/ Bank of England on Thursday and PBoC on Friday. Adding to that would be the inflation numbers from the UK, Euro zone, Japan, U.S. The forward guidance of all the central banks would be closely watched going into the new year 2025.

On chart, momentum remains positive with strong support at 76600/ 76200, till the given level holds, prices may move up towards 77650/ 78400.

In the international spot gold similar support holds at USD 2625/2600, upside potential looks towards USD 2700/2725.

The pharma company has acquired three anti-diabetes trademarks (GIBTULIO, GIBTULIO MET, and AJADUO) from Boehringer Ingelheim International GmbH to strengthen its diabetes portfolio in the country.

#1 RMC Switchgears to set up 1 gwp solar module plant Jaipur

The Sensex was down 374.97 points or 0.46 percent at 81,758.15, and the Nifty was down 112.75 points or 0.46 percent at 24,655.55. About 2095 shares advanced, 1392 shares declined, and 105 shares unchanged.