Closing Bell: Nifty around 21,250, Sensex up 359 pts; all sectors in the green

Benchmark indices ended in the green in the highly volatile session on December 21. At close, the Sensex was up 358.79 points or 0.51 percent at 70,865.10, and the Nifty was up 104.80 points or 0.50 percent at 21,255.

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 recently demonstrated resilience, rebounding strongly from a critical support level at 21000, affirming a bullish sentiment. The index closed above its 10-day moving average, signaling positive momentum. Key levels to monitor include 21000 as immediate support and 21300 as the initial resistance.

Demonstrating resilience, Bank Nifty robustly rebounded from a crucial support level at 47000, confirming a bullish trend. The index closed above the resistance at 47500, highlighting its strength. Having closed above the 10-day moving average, Bank Nifty finds immediate support at 47500, while 48000 acts as the intitial resistance.

Benchmark indices concluded the highly volatile session on December 21 in positive territory, gaining 104.9 points. A Bullish Piercing candlestick pattern has emerged on the daily chart, indicating potential bullish momentum. If the Nifty surpasses the 21,500 level, there is positional potential for an upward movement to 21,650 and 21,750 in the coming days.

Among sectors, Information Technology, banking, and FMCG each rose by 0.5 percent, while metal, pharma, realty, power, and oil & gas, as well as capital goods, posted gains of 1-2 percent each. On the downside, crucial support is positioned at 21,000–20,900, while resistance is situated at 21,500–21,600. Overall, the trend is positive, and the current dip should be viewed as a buying opportunity.

The Bank Nifty also recovered in the second half, closing at 47,852.7 with a gain of 394.85 points. On the downside, 46,900 is the crucial support, and as long as it holds, Bank Nifty is expected to resume its upward movement towards 48,200. The overall trend is positive, and declines towards 47,300–47,000 should be considered as buying opportunities.

After a subdued start, the market reversed from the day’s low amid buy-on-dips strategy. However, the overall trend is subdued, FIIs stayed muted ahead of festive break and global market traded on a negative note ahead of announcement of the US GDP data today.

Some consolidation is warranted in the near term due to peak valuation. A gradual rise in oil prices along with concern over high domestic food inflation may have a hindrance to the stretched rally of the last 2 months.

Markets took a breather after yesterday’s fall and gained nearly half a percent. After the initial downtick, Nifty recovered gradually as the day progressed and finally settled around the day’s high at 21,255.05 levels. Most sectors participated in the rebound wherein energy, metal and banking were among the top performers. The broader indices too witnessed respite and gained nearly 2% each.

We expect consolidation in the index now, however, there will be no shortage of trading opportunities on the stock-specific front. Participants should align their trades accordingly and prefer sectors, which are showing relatively higher strength. Apart from the domestic factors, the performance of the US markets would play a critical role in the next directional move so keep a close watch.

Markets witnessed a roller coaster ride, as key indices plunged in early trades only to recoup their lost ground and end sharply higher. Earlier, weak European and Asian indices weighed on sentiment but India’s strong growth story prospects gives investors the comfort to place long term bullish bets.

The bulls showed their presence with a swift recovery right from the beginning. In the presence of follow-through, the Index kept compounding its gains to settle the weekly expiry day at 21,255.05 with gains of 104.90 points. All the sectors ended the day in green with Media and Energy being the major outperformers. Market breadth was in favor of bulls as Mid and Smallcaps advanced by 1.69% & 1.94% and outperformed the Frontline Index.

On the daily chart, the Index has made a strong bullish candle with the support of a hidden bullish divergence in RSI (mentioned earlier) which helped the Index to recoup half of its previous session's losses.

In today's trade, the Index has virtually filled its bullish gap zone (20,950-21,074) that was formed on 14th December which indicates a strong support base has been placed while the immediate resistance is positioned at 21,340.

Indian rupee ended 10 paise lower at 83.27 per dollar versus previous close of 83.17.

: Benchmark indices ended in the green in the highly volatile session on December 21.

At close, the Sensex was up 358.79 points or 0.51 percent at 70,865.10, and the Nifty was up 104.80 points or 0.50 percent at 21,255. About 2419 shares advanced, 834 shares declined, and 72 shares unchanged.

Top gainers on the Nifty were BPCL, Power Grid Corporation, Britannia Industries, HDFC Bank and Hindalco Industries, while losers were Bajaj Auto, Bajaj Finance, Axis Bank, HCL Technologies and Cipla.

Among sectors, Information Technology, bank, FMCG up 0.5 percent each, while metal, pharma, realty, power and oil & gas, capital goods up 1-2 percent.

BSE Midcap and Smallcap indices up 1.5 percent each.

Shares of Delhivery surged over 6 percent on December 21, a day after the new-age logistics services provider operationalised its largest gateway in Bhiwandi, Maharashtra. Built over 1,200,000 sqft of land area, the Bhiwandi trucking terminal is one of India’s largest logistics facilities.

The terminal combines automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part-truckload freight volume simultaneously, the company said in a statement. Read More

Happy Forgings IPO was subscribed 47 times on the final day of bidding on December 21 with bids for 39 crore shares against an issue size of 83.65 lakh shares.

Retail investors bought 13 times and high net-worth individuals picked 54 times the allotted quota, while qualified institutional buyers picked 102.5 times their reserved portion.

Sensex Today | Nifty PSU Bank index rose 1.7 percent supported by UCO Bank, Central Bank of India, Punjab National Bank:

Credo Brands (Mufti) IPO was subscribed 24 times on the final day of bidding on December 21 with bids for 32.8 crore shares against an issue size of 1.96 crore shares.

Retail investors bought 16 times and high net-worth individuals picked nearly 41 times the allotted quota, while qualified institutional buyers picked times their reserved portion.

RBZ Jewellers IPO was subscribed 13.4 times on the final day of bidding on December 21 with bids for 10.5 crore shares against an issue size of 79 lakh shares.

Retail investors bought 21.5 times and high net-worth individuals picked 7 times the allotted quota, while qualified institutional buyers picked 7 times their reserved portion.

Indian Rupee depreciated on Thursday on positive US Dollar and a rise in crude oil prices. FII outflows over the past three consecutive session also weighed on the Rupee. However, positive domestic equities cushioned the downside. US Dollar gained on Wednesday on better than expected CB consumer confidence and existing home sales data. Consumer confidence rose to 110.7 in December versus forecast of 104 while existing home sales increased by 0.7% to 3.82 million units (annualised) in November 2023 vs forecast of 3.77 million units.

We expect Rupee to trade with a slight negative bias on profit booking by FIIs at near record high domestic markets and a positive tone in the US Dollar. Surge in crude oil prices amid the geopolitical tensions in the Red Sea. However, a recovery in the domestic markets post Wednesday’s sell-off may cushion the downside. Traders may take cues from final GDP, weekly unemployment claims and and Philadelphia Fed Manufacturing Index data from US. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.70.

Stock Market LIVE Updates | Morgan Stanley View On Telecom 

-TRAI September 2023 highlights show overall subscriber addition was stable and active subscribers increased MoM versus a decline in August
-Wireless data subscriber additions were highest in 26 months
-Wireline data subscriber additions moderated to 0.46 million versus 0.7 million in August-23
-Healthy data subscriber additions

The dollar was steady while sterling crosses nursed losses on Thursday in holiday-thinned trade ahead of the last major data release of the year in Friday's U.S. inflation figures.

Sterling suffered its sharpest drop on the dollar in two months on Wednesday after British inflation dived below forecasts to an annual 3.9% in October, a two-year low.

The currency fell 0.7% to $1.2638 as traders priced in Bank of England rate cuts as soon as May. On Thursday it hit a one-week low of $1.2618.

The dollar index, down 1% for the year so far, was steady at 102.40. Ten-year Treasury yields had hit a seven-month low of 3.847% on Wednesday.

Stock Market LIVE Updates | Jefferies View On Banks 

-Deposit growth uptick to 13% (highest in 6 years) has lowered gap with credit growth 
-Liquidity is tight & call rates are 20 bps above repo rate
-RBI's comfort with inflation may be key to change this
-While banks offer higher rates, large banks are offering lower rates
-In some cases, term rates are lower savings rates of small banks
-Among smaller banks, IndusInd Bank has lower rates & wider sources
-Lower NIMs may be risk to earnings, but expect some offsets

Sensex Today | Market at 3 PM

The Sensex was up 342.02 points or 0.49 percent at 70,848.33, and the Nifty was up 94.80 points or 0.45 percent at 21,245. About 2325 shares advanced, 899 shares declined, and 92 shares unchanged.

Shares of Poonawalla Fincorp lost 1 percent after a huge block deal. Around 1.36 million shares of the company changed hands in a bunch of block deal, according to Bloomberg. However details of the buyers and sellers were not known.

-Overweight call, target Rs 770 per share
-Expects to launch first 500 units of Arbour 2/Privana South at sector 77 on December 21
-Project spans over 28 acres with ASP of Rs 18,000 per sq ft, potential sales of Rs 9,000 crore
-It Includes 7 towers with 1,113 units including 14 penthouses
-Assuming 50% pre-sales in December, it could contribute Rs 4,500 crore to Q3 pre-sale

Sensex Today | BSE Healthcare index up 0.6 percent led by Tarsons Products, Gujarat Themis Biosyn, Metropolis Healthcare:

Praveg has received the work order for development, operation, maintenance and management of at least 50 tents at Agatti Island, Union Territory of Lakshwadeep. The work order is for a period of three years that could be extended up to another two years. With the addition of this resort, Praveg will now have 9 properties in operation and 10 under development.

Oil prices fell on Thursday as concerns over low demand following a surprise U.S. crude inventory build outweighed jitters over global trade disruptions due to tensions in the Middle East.

Brent crude futures fell 3 cents to $79.67 a barrel by 0753 GMT while U.S. West Texas Intermediate crude was at $74.16 a barrel, also down 6 cents.

Sensex Today | Market at 2 PM

The Sensex was up 191.14 points or 0.27 percent at 70,697.45, and the Nifty was up 62.60 points or 0.30 percent at 21,212.80. About 2235 shares advanced, 975 shares declined, and 86 shares unchanged.

Credo Brands (Mufti) IPO was subscribed 14.4 times on the final day of bidding on December 21 with bids for 19.8 crore shares against an issue size of 1.96 crore shares.

Retail investors bought 15 times and high net-worth individuals picked nearly 32 times the allotted quota, while qualified institutional buyers picked 73 percent shares of the reserved portion.

There is an Investment of Rs 21.37 crore in IIFL Fintech fund where the Company has outstanding debt exposure of Rs. 3.28 croew in one of the downstream investments of the fund.

Further all other AIF Investments of the company aggregating to Rs 909.81 crore as on current date does not include any downstream investments to which it has a loan or investments exposure currently or in the preceding twelve months.

Happy Forgings IPO was subscribed 20 times on the final day of bidding on December 21 with bids for 17 crore shares against an issue size of 83.65 lakh shares.

Retail investors bought 12 times and high net-worth individuals picked 42.1 times the allotted quota, while qualified institutional buyers picked 18.7 times their reserved portion.

Trade restrictions on items like wheat, sugar to cause USD 4-billion export drop this year
Basmati rice exports may be impacted if attack on Red Sea by Houthis persists
India may consider longer route around Africa to export basmati rice
Longer shipping route along Africa to export rice may raise price by 15-20%
Don’t expect higher prices of Indian basmati rice to deter demand

The LCL (Less-than-container Load) volume for November 2023 was marginally down 0.35% as compared to November 2022 and remained flat (up 0.11%) as compared to October 2023. January 2023 onwards, the volume includes ~1.5% contribution from the new acquisition in Germany.

The demand continues to remain subdued reflecting a tough macroeconomic environment for global trade. Major decline was witnessed across key geographies of Americas, LATAM and Europe, while it witnessed some improvement in APAC led by China and India.

Agreement includes provision of 1-month extension of negotiations in good faith, while there is no provision in current agreement for extension of agreement after 1-month extension.

The Board of Directors of the Bandhan Bank has, on December 21, 2023, approved the proposal to transfer the Bank’s Housing Finance NPA portfolio, having Days Past Due (‘DPD’) of more than 180 days, with an outstanding of Rs 775.62 crore (as on September 30, 2023), to Asset Reconstruction Company (ARC).

The Bank has received a binding bid of Rs 280.39 crore (i.e., 36.15% of the outstanding pool) for the said NPA portfolio, on outright cash consideration basis.

Bharti Airtel has formed a strategic partnership to power up to 20 million smart meters with IntelliSmart Infrastructure Private Limited. This partnership also marks Airtel’s foray into high end applications such as Advance metering infrastructure and meter data management systems along with Cloud and Analytics.

This is the largest such deal in the smart metering space in the country. It will significantly contribute towards Airtel’s fast-growing IoT deployment across sectors, company said.

Gold prices rose on Thursday, helped by a softer dollar and lower Treasury yields, as traders looked to U.S. economic data for more clues on the Federal Reserve's monetary policy outlook.

Spot gold was up 0.3% at $2,035.19 per ounce, as of 0709 GMT. U.S. gold futures was steady at $2,047.10.

Sensex Today | BSE Capital Goods index up 0.7 percent led by Sona BLW Precision Forgings, BHEL, Suzlon Energy: 

Sensex Today | Market at 1 PM

The Sensex was up 299.23 points or 0.42 percent at 70,805.54, and the Nifty was up 90.60 points or 0.43 percent at 21,240.80. About 2341 shares advanced, 851 shares declined, and 87 shares unchanged.

RBZ Jewellers IPO was subscribed 10 times on the final day of bidding on December 21 with bids for 7.8 crore shares against an issue size of 79 lakh shares.

Retail investors bought 18.36 times and high net-worth individuals picked 5.1 times the allotted quota, while qualified institutional buyers picked a marginal 6 percent shares of the reserved portion.

The Reserve Bank of India has approved the re-appointment of Sandeep Batra as Executive Director of ICICI Bank with effect from December 23, 2023 to December 22, 2025. This renewed term of two years is within the five years term as previously approved by the shareholders.

State-owned Punjab National Bank is planning to raise up to Rs 3,000 crore by issuing Basel-III Additional Tier-I bonds on December 27, according to market sources. The issue comprises a base size of Rs 500 crore, with a greenshoe option of Rs 2,500 crore. A greenshoe option allows companies to issue more bonds or raise more funds than the base issue size.

The bonds have a call option on the fifth anniversary from the Deemed Date of Allotment or any anniversary date thereafter with the prior approval of the Reserve Bank of India (RBI). The lender has set a pay-in date for the bonds on December 2. This is the date when the exchange of funds and bonds takes place between the issuer and investors. Read More

The SEBI has granted its approval for appointment of Pramod Agrawal as Chairman on the Governing Board of the stock exchange with effect from January 17, 2024. S S Mundra, Chairman and Public Interest Director will be ending his term on January 16, 2024.

Sensex Today | BSE Metal index up 0.5 percent led by NMDC, Jindal Stainles, Vedanta:

The company inform about the opening of 3-screen multiplex at IRIS Broadway, Sector 85, Gurugram, on NH-8, Dwarka Expressway.

The cinema is equipped with 4K Laser Projection system providing razor-sharp visuals, 7.1 Dolby surround sound and vibrant 3D view powered by Volfoni.

With this launch, PVR INOX now operates the largest multiplex network with 1,712 screens across 359 properties in 113 cities (India and Sri Lanka).

At the beginning of the year, uncertainties surrounded the economy and market due to challenges such as supply constraints, hyperinflation, and overvaluation. The collapse of US small banks, driven by rising interest rates, added to the concerns. Domestic earnings growth contracted in Q3CY22 & Q4CY22 due to a slowing global economy & geopolitical risk. But India’s GDP growth forecast started to upgrade from Q1, and the earnings growth of corporate continued its robustness. FIIs hold on to their risk-off strategy due to a weak global market, but domestic retail inflows expanded starting from Q2. Throughout the year, the domestic market demonstrated strong resilience, surpassing expectations. Towards the end of the year, the stock market saw improvement as FII selling reduced, accompanied by a decrease in geopolitical risks and inflation.

We expect Nifty50 to provide a return of ~10-12% in CY24. Currently, we are positive on H1CY24 in anticipation of a pre-election rally as the domestic political and global market environment is aptly placed. And the final performance of the second half hinges on the election outcome and the final budget, which is also forecast to be stable. While challenges are the EL-Nino effect on food inflation and the recent far stretched performance of global markets in anticipation of a deep cut in interest rate, which is a challenge when CPI is forecast to be above the long-term average. We suggest a multi-asset investment strategy, as both equity and non-equity can provide a moderate return as valuations are inexpensive.

Sensex Today | Market at 12 PM

The Sensex was up 34.37 points or 0.05 percent at 70,540.68, and the Nifty was up 16.10 points or 0.08 percent at 21,166.30. About 2236 shares advanced, 935 shares declined, and 79 shares unchanged.

Coforge has announced an initiative with Microsoft Azure OpenAI Service to aid the adoption of Generative Artificial Intelligence (AI) across enterprises.

Coforge's Generative AI solutions offer enterprises a comprehensive toolkit to address complex challenges and unlock new growth opportunities using AI.

The company also received tax demand of Rs 97,97,99,720 (including interest liability of Rs 23,79,49,419)

Azad Engineering IPO was oversubscribed on Day 2 led by NIIs subscribing by 11x and retail investors subscribing by 6.7x. The total bids received were for 5.8 crore shares as against issue size of 1 crore shares.

Innova Captab IPO was subscribed by 0.36x so far on day 1 led by retail investors subscription of 0.6x and NII subscription of 0.21x.

Credo Brands IPO was oversubscribed on Day 3 of December 21 led by NII subscription of 19x and retail investors at 11.6x. QIBs, on the other hand, subscribed about 0.3x of the public issue. The total bids were received for 13 crore shares against issue size of 1.3 crore.

Happy Forgings IPO was subscribed by 10.4x on the final day on December 21, with bids for 8.7 crore shares as against issue size of 83 lakh shares. NIIs subscribed 25.3x, while retail investors subscribed 9.4x, and QIBs subscribed 0.5x.

RBZ Jewellers IPO was subscribed 8.4 times on the final day of bidding on December 21 with bids for 6.6 crore shares against an issue size of 79 lakh shares.

Retail investors bought 15.2 times and high net-worth individuals picked 4.3 times the allotted quota, while qualified institutional buyers picked a marginal 5 percent shares of the reserved portion.

IndusInd Bank sold 1,78,57,355 equity shares or 2.86% stake in Nippon Life India Asset Management at a price of Rs 445.35 per share, amounting Rs 795.27 crore. SBI Mutual Fund purchased 32,68,590 equity shares at same price, amounting to Rs 145.6 crore, and ICICI Prudential Mutual Fund bought 47,01,405 equity shares at same price, amounting Rs 209.4 crore.

Shares of Landmark Cars Limited traded 1.6 percent higher to Rs 791 in early trade on December 21 after Bajaj Finance sold 3.2 lakh shares in the luxury car retailer at Rs 805.58 per share, which amounted to Rs 25.77 crore.

The shares were sold at a 3.3 percent premium from the closing price of December 20 at Rs 779 on the National Stock Exchange. Read More

HDFC Mutual Fund Multi Cap Fund has bought 6 lakh shares in Symphony at a price of Rs 880 per share. However, Swayat Trading Co was the seller in this deal.

Sensex Today | BSE Bank index shed 0.5 percent dragged by Axis Bank, IndusInd Bank, ICICI Bank:

Shares of DLF gained 1 percent to Rs 683 per share on December 21 in an otherwise subdued market after global brokerage firm Morgan Stanley shared an 'overweight' rating on the counter, with a target price of Rs 770 per share, implying an upside of 12 percent from current levels.

In the past month, the stock of this realty major has surged over 7 percent as against a 5 percent rise in the Nifty Realty index. Earlier, DLF shares hit a 52-week high of Rs 708 per share on December 15, 2023. Read More

Satin Creditcare Network shares jumped 2 percent on December 21 as the company successfully raised funds through the Qualified Institutional Placement (QIP) route.

According to an exchange filing, the company board approved the allotment of 1,08,36,584 equity shares at an issue price of Rs 230.70 to seven institutional investors.

Satin Creditcare Network Ltd allotted equity shares to seven institutional investors, including ICICI Prudential Life Insurance Company Ltd, Societe Generale, and Bandhan Mutual Fund, among others, to raise around Rs 250 crore. The issue price was at a discount of 4.99 percent or Rs 12.11 per share to the floor price of Rs 242.81 per share. Read More

Shares of Shriram Pistons & Rings hit its upper circuit in early trade on December 21 after Ace investor Sunil Singhania-backed Abakkus picked up a stake of Rs 326.01 crore in the company.

A series of Abakkus funds purchased 29.54 lakh equity shares or around 6.7 percent stake in the company at a price of Rs 1,103.6 per share on December 20.

AL Mehwar Commercial Investments bought 4.36 lakh shares at the same price, but K S Kolbenschmidt GMBH sold 39 lakh equity shares or 8.9 percent stake in the company at the same price, amounting to Rs 430.4 crore. Read More

Sensex Today | BSE Midcap index up 0.5 percent led by IRCTC, Castrol India, Zee Entertainment Enterprises:

Given the sudden reversal in secondary market environment and profit booking sentiments due to covid headline, INOX India listed below street expectation despite strong subscription demand.

We believe company's strategic position in the niche market with global footprint and commitment to innovations can command higher valuation multiple going forward.

We had recommended short term investors to book profits on listing day while long term investors can HOLD considering healthy long term growth in leading supplier and exporter of cryogenic equipment and solutions. For those investors who failed to get allotments in the public offer can accumulate on every dips post listing for decent long term returns.

Sensex Today | BSE Smallcap index up 1 percent led by TTK Healthcare, HBL Power Systems, Arman Financial Services:

Inox India entered the secondary market today at a listing price of Rs 949, a gain of around 43% over its issue price of Rs. 660. The IPO received a huge subscription of 61.28x. Though we can consider it a decent listing, it is still below expectations, and the reason behind this is poor market sentiment.

Inox India is the leading cryogenic equipment supplier in India, benefiting from rising demand in sectors like healthcare, space exploration, and food processing. It boasts a diversified product portfolio and a strong order book.

With strong fundamentals and a growing market, the company has the potential for long-term value creation; thus, we recommend holding it with a long-term view. Also, fresh buying at a lower level can be considered.

Sensex Today | BSE Power index up 1 percent led by Suzlon Energy, BHEL, Tata Power:

Siyaram Recycling Industries Ltd shares opened 19.5 percent higher after its initial public offering subscribed over 385 times last week.

The stock opened at Rs 55 a share from its issue price of Rs 46 a share. At 10am, the stock was trading at Rs 57.75 on BSE, up 25.5 percent from its issue price.

The SME IPO, open from December 14 to 18, saw overwhelming subscription levels: 459 times in the retail category, 96 times in QIb, and 597 times in NII.

-Expect to cross Rs 25,000 crore order inflow in FY24
-Guidance upped from Rs 20,000 crore

Benchmark Computer Solutions had a decent market debut on December 21, listing at a 21 percent premium over the IPO price. The stock opened at Rs 80 on the BSE SME platform against the issue price of Rs 66.

The initial public offering was subscribed 484.49 times with retail investors’ portion getting booked over 590 times the allotted quota.

Suzlon Group today announced a new order win for the development of a 193.2 MW wind power project for The KP Group. This will be part of Wind-Solar Hybrid and STU's (State Transmission Utility) tariff-based project for increasing Renewable Energy contribution in the state of Gujarat.

Suzlon will supply 92 units of their S120 - 2.1 MW wind turbine generators (WTGs) with a 140m Hybrid Lattice Tubular (HLT) tower at Vagra and Vilayat in Bharuch district of Gujarat.

Sensex Today | Market at 10 AM

The Sensex was down 242.63 points or 0.34 percent at 70,263.68, and the Nifty was down 66.80 points or 0.32 percent at 21,083.40. About 1952 shares advanced, 1075 shares declined, and 88 shares unchanged.

Sensex Today | INOX India lists at Rs 949, over 43% premium to IPO price

Shares of INOX India listed at a 43 percent premium on December 21, while analysts had expected at 75 percent premium. The stock started trading at Rs 949.65 while the IPO price was Rs 660. The slightly lower premium was due to the subdued market momentum, said analysts.

The INOX India IPO was subscribed 61.28 times during December 14-18, with support from all kinds of investors' categories. Qualified institutional buyers (QIBs) were in the leading position buying 147.80 times the allotted quota, while high networth individuals (HNIs) and retail investors subscribed for 53.20 times and 15.3 times the portions set aside for them.