Closing Bell: Nifty above 24,200, Sensex up 993 pts; all sectors in the green

Indian benchmark indices extended the gain on the second day on November 25 with Nifty above 24200. At close, the Sensex was up 992.74 points or 1.25 percent at 80,109.85, and the Nifty was up 314.60 points or 1.32 percent at 24,221.90.

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 BJP's landslide victory in Maharashtra’s state elections sparked a strong rally in Indian equity markets on Monday. The Sensex jumped 992.74 points (1.25%) to reach 80,109.85, while the Nifty 50 gained 314.65 points (1.32%) to reach 24,221.90. This followed an approx 2.5% rise in the previous session, as markets cheered political stability. Sectors such as oil & gas, realty, capital goods, and PSU banks led the rally, posting gains of 2-4%. Investors are optimistic that sectors like infrastructure, urban development, and manufacturing will benefit from BJP’s policy focus.

However, concerns remain over global geopolitical uncertainties and continued selling by foreign investors. The dollar index, which climbed 0.43% to 107.52, reflected lingering risk aversion in global markets.

Despite these challenges, positive domestic cues and political stability helped lift market sentiment. The strong showing by the BJP and its alignment with growth-driven policies boosted investor confidence, paving the way for a potential market recovery.

The relief rally backed by robust short covering ahead of the monthly expiry this week continued for a second straight session as benchmark Sensex breached the psychological 80k mark on all-round buying support. The enthusiasm after the Maharashtra assembly election win by the BJP & its allies gave equity markets a major boost on expectations that infrastructure projects would get a fresh leg up going ahead.

The sharp fall in the rupee could turn positive for domestic equity markets going ahead as any further appreciation in local currency could reverse the ongoing FII fund outflows. Technically speaking, Nifty and Sensex are still at oversold conditions with immediate upside hurdles seen at 24515 and then at psychological 25000 mark while support is placed at 23921 mark.

The Nifty opened with a gap-up on Monday and traded sideways throughout the day. The index has moved above the 21 EMA, indicating improving sentiment. The RSI is in a bullish crossover and trending upward. The sentiment is expected to remain positive in the short term, with buying on dips likely to favor traders. On the higher side, 24,500 is expected to act as a crucial resistance; a decisive move above this level could trigger a further rally. Support on the lower side is placed at 23,950–24,000.

Major state election results lifted market sentiment and increased the scope of stability in government spending in H2FY25 to meet the capex target. The rally was broad-based, while capex-linked sectors like infra, capital goods, and industrials outperformed in expectation of a surge in new order inflows.

The prospects of H2 remain positive due to a good monsoon, festival, and marriage season, which could ease the impact of earnings downgrades that happened in Q2.

Positive domestic cues propelled the Index to start the week on a robust note but then, it remained rangebound for the rest of the day to settle the trade at 24,221.90 with gains of 314.65 points.

For the sectors, all of them ended in green with PSU Banks and Realty being the top gainers. Mid and Smallcaps advanced by 1.61% & 2.03% and outperformed the Frontline Index.

Nifty50 has given a breakout from Falling Wedge formation but with a DOJI candlestick pattern which is not very encouraging. The activity in the upcoming days will confirm the success or failure of the pattern breakout.

For the time being, the nearby support is placed at 23,950 (bullish gap) whereas the higher side seems to be capped at 24,350.

Indian rupee ended 17 paise higher at 84.28 per dollar on Monday versus Friday's close of 84.45.

Indian benchmark indices extended the gain on the second day on November 25 with Nifty above 24200.

At close, the Sensex was up 992.74 points or 1.25 percent at 80,109.85, and the Nifty was up 314.60 points or 1.32 percent at 24,221.90. About 2541 shares advanced, 1347 shares declined, and 148 shares unchanged.

ONGC, BPCL, Bharat Electronics, SBI and L&T are among the top gainers on the Nifty, while losers are JSW Steel, Infosys, Bajaj Auto, Tech Mahindra and Asian Paints.

BSE midcap index rose 1.6 percent and smallcap index added nearly 2 percent.

Among sectors, oil & gas, realty, capital goods, PSU bank up 2-4 percent.

Muthoot Microfin has initiated loan disbursals under its co-lending partnership with the State Bank of India (SBI).

#1 Management is seeing strong demand momentum on favorable macro and upgrade demand

#2 ASP escalation should add to pre-sales growth

#3 Projects have seen 30-40 percent ASP growth over 3-4 years

#4 Luxury remains the target segment, helping strong margin

QIB – 2.47 times

NII - 15.48 times

Retail – 7.24 times

Employee Reserved - 11.31 times

Overall – 9.79 times

Gold prices witnessed some softness in today's trade after hitting a 3-week high in the international market. A higher inflation print in the US has dampened further hopes of rate cuts, negatively affecting gold prices.

As far as the domestic market is concerned, the ripple effect of this was clearly witnessed, where the price of yellow metal is hovering near INR 78,000 level, which is 5% below its all-time high mark.

Gold, the safe haven asset, witnessed a spike in its prices in a low interest rate regime. Going ahead, gold prices are likely to scale new highs which will be fuelled by the current geo-political tensions in the Middle East and further intensification of war between Russia and Ukraine.

#1 Core thesis driven by accelerating power demand, evening shortages & cost of debt advantage

#2 There might not be many levers for upside beyond this but also don’t see reason for downside

#3 Stock still trades at 16x FY25 earnings & 10x EV/EBITDA- in line with global peers

S&P Global has revised India’s GDP growth forecast to 6.7% for FY26 and 6.8% for FY27, citing high interest rates and reduced fiscal stimulus. The FY25 projection remains unchanged at 6.8%. Despite PMIs staying in expansion territory, other indicators show a temporary slowdown due to a construction sector hit in Q2 FY24. S&P anticipates growth rebounding to 7% in FY28.

The board has approved the monetization of the company’s immovable property/ies via sale, which are either of limited use or non-productive for business operations.

Buoyed by nuclear threat concerns, spot gold rallied 1.76% to settle at $2716 on Friday and was up over 2% on the week.

Today, the metal has plunged nearly 2% to $2668 (low $2658) in the Asian session on multitude of factors like no major development on the Russia-Ukraine war front in the weekend, S&P Global US services and composite PMI data topping the forecasts, risk-on sentiments, a possibility of Israel reaching a ceasefire with Hezbollah and Trump appointing Scott Bessent as Treasury Secretary who is vocal about deficit cuts.

The US treasury yields are sharply lower on his appointment, which is limiting the losses in gold. The 2-year and 10-year yields are down by nearly 0.75% and 1.75%, respectively.

Gold is expected to be highly volatile and may find support around $2650 as the geopolitical concerns still linger. The next major support will be around $2600. Resistance is at $2700/$2717.

The Reserve Bank of India (RBI) has approved the Central Bank of India’s entry into the insurance business through a joint venture with the Generali group under FGIICL and FGILICL, subject to approval from IRDAI.

QIB – 2.05 times

NII – 19.12 times

Retail – 5.79 times

Employee Reserved – 9.49 times

Overall – 7.59 times

The company has sold its immovable property and a 2.7-acre plot of land, along with structures, at Banjara Hills, Hyderabad, to ViNS Bioproducts for Rs 101.7 crore.

NSE Investments has decided to exercise the green shoe option of 10.16% equity in the offer-for-sale on November 25. It had previously decided to sell up to 20.31% stake in Protean via offer for sale from November 22-25, including a base issue of 10.16% equity and a green shoe option of 10.16% equity.

Mahindra Group, through its subsidiary Mahindra World City Developers, has announced the second phase of its industrial parks project in Tamil Nadu under the brand ‘Origins by Mahindra’, in partnership with Sumitomo Corporation, Japan.

Mahindra World City Developers and Sumitomo Corporation will invest Rs 225 crore in Mahindra Industrial Park Chennai (MIPCL), in proportion to their existing shareholding.

Due to insufficient funds, MTNL could not fund the ESCROW account with the adequate amount. As per the Structured Payment Mechanism of the Tri-Partite Agreement (TPA) signed among MTNL, the Department of Telecommunications, Ministry of Communications, Government of India, and Beacon Trusteeship, MTNL is required to fund the semi-annual interest into the ESCROW account with the adequate amount 10 days before the due date (December 1, 2024).

Rahul Puri has been appointed as the Chief Executive Officer (CEO) for the optical networking business of the company. He will report to Ankit Agarwal, Managing Director of the company. At the time of his appointment, Rahul Puri was the Business Head for EMEIA & APAC at the company.

The BSE has decided to add 43 securities in the equity derivatives segment, including Jio Financial Services, LIC, FSN E-Commerce Ventures (Nykaa), One 97 Communications (Paytm), Zomato, Macrotech Developers (Lodha), Adani Green Energy, Delhivery, Adani Energy Solutions, Angel One, CAMS, Indian Bank, CG Power and Industrial Solutions, and IRFC, starting December 13.

QIB – 2.05 times

NII - 14.46 times

Retail – 4.58 times

Employee Reserved - 8 times

Overall – 5.98 times

#1 October spending market share was largely stable MoM, at 15.8 percent

# October spending data reflects continued impact of RBI's notification on corp card spending

The company’s subsidiary, Eminent Electricity Distribution, has received a ‘Letter of Intent’ for the acquisition of 100% shares in an electricity distribution company with a distribution license in Chandigarh, for Rs 871 crore.

The company’s subsidiary, Escorts Kubota Finance, intends to commence its business activities as a non-banking financial institution, without accepting public deposits, starting November 26.

Shares of Mahindra and Mahindra (M&M) rose as much as 4.5 percent to Rs 3,149 in morning trade on November 25 after international brokerages HSBC and Jefferies dished out bullish calls on the counter, expressing optimism on a strong position in the auto and tractor markets.

With a price target of Rs 3,700, Jefferies forecasts an upside potential of 23 percent from the last close of Rs 3,012. On the other hand, HSBC has assigned a price target of Rs 3,390 translating to an upside of almost 13 percent.

Jefferies says that M&M has posted consistent market share gains across tractors, SUVs, and light commercial vehicles (LCVs) while competitor Maruti Suzuki has been losing ground in passenger vehicles. The brokerage expects M&M to deliver a higher earnings per share (EPS) compound annual growth rate (CAGR) of 19 percent over FY24-27, compared to Maruti's 10 percent.

HSBC anticipates strong tractor volume growth between FY25 and FY27, supported by favorable reservoir levels and the easing of El Niño conditions. HSBC believes regional reservoir trends are more aligned with M&M’s strongholds, offering additional growth potential. Conversely, the brokerage issued a 'reduce' call on Escorts with a target price of Rs 3,180.

Indraprastha Gas (IGL) hikes CNG price by Rs 2/kg in areas except Delhi w.e.f November 23

Ashish Lakhotia has resigned as Chief Financial Officer of the company to pursue opportunities outside the company, effective January 22.

#1 Pre-sales expected to grow at 10-12 percent CAGR in an upcycle

#2 EBITDA margin expansion to 36-38 percent

#3 RoE is currently 7.5 percent & should be double digit in 3-4 years without any change in business strategy

The ability of the market to surprise was evident in the 557 point spurt in the Nifty on Friday. This sharp upswing will continue today assisted by the super NDA performance in Maharashtra. The political message from this election is huge and highly positive from the market perspective.

A significant feature of the Friday rally was the sharp spurts in many largecaps with some stocks shooting up by more than 4%. This clearly indicates short covering, which will keep the market resilient today.

Whether the rally will continue beyond a couple of days remains to be seen since the earnings headwinds will continue to constrain the bulls.

Banking and IT are on a strong wicket assisted by fair valuations and reasonable growth prospects. Watch out for capital goods, telecom and pharma stocks.

Central Bank of India shares surged over four percent in the morning session on November 25, after the Reserve Bank of India gave the public sector lender the go-ahead to enter the insurance business. Through a joint venture with the Generali Group, the bank will foray into the segment.

"We would like to inform that the Reserve Bank of India (RBI) vide its letter dated 21st November 2024 has approved the bank's entry in the insurance business through a joint venture with Generali group under FGIICL and FGILICL, subject to continuous compliance of conditions stipulated by it and approval of IRDAI, the sectoral regulator," said the bank in a filing with the bourses.