Closing Bell: Nifty above 23,800, Sensex gains 227 pts; autos rally, metals drag

Indian benchmark indices ended with gains on December 27 with Nifty above 23800. At close, the Sensex was up 226.59 points or 0.29 percent at 78,699.07, and the Nifty was up 63.20 points or 0.27 percent at 23,813.40.

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After showing a narrow range movement in the last few sessions, Nifty moved up with range bound action on Friday and closed the day higher by 63 pointsamidst choppy trade. After opening with a positive note, Nifty moved up further in the early part of the session. However, it was not able to surpass the hurdle of 23900-24000 levels and slipped into weakness from the highs in the mid part of the session.

A small green candle was formed on the daily chart with upper shadow. Technically, this pattern indicates an attempt of upside breakout of small range movement with lack of strength. This is not a good sign.

The opening downside gap of 19th Dec is still intact after six sessions of its formation. The said down gap could be considered as a bearish runaway gap, which is normally formed in the middle of a down trend.

The short-term trend of Nifty is slightly positive with range bound action. The market could encounter strong overhead resistance around 24000-24200 levels by next week and any rise up to the hurdles could be a sell-on-rise opportunity. Immediate support is at 23650.

#1 Market gives positive returns in a thin-volume week, Nifty up 1 percent

#2 Auto & pharma see buying while metals were amongst top losers

#3 Sensex, Nifty & Nifty Bank rise 1 percent each, Midcap index was flat

The Christmas week trading ended on a subdued note; a lack of major triggers and caution ahead of the swearing of US Republican Party administration continued to impact the sentiment. While the rupee dropped to a new low, weighed down by the expectation of fewer Fed rate cuts, a widening trade deficit, and weak economic growth. The auto index outperformed, aided by an expectation of a pickup in volumes in December and comfort in valuation.

"The markets remained volatile but managed to close with modest gains, continuing the ongoing consolidation phase. After an initial rise, the Nifty extended its gains and briefly surpassed the 23,813 level, only to lose momentum and gradually drift lower as the session progressed, ultimately closing at 23,813.40 level. Sector-wise, the trend remained mixed, with pharma and auto stocks performing well, while metal and realty sectors faced pressure. The broader indices were subdued for yet another session and ended nearly flat.

The markets continue to face resistance on the upside, reinforcing our negative outlook on the index. However, individual stocks are presenting opportunities on both sides, driven by noticeable strength in defensive sectors like pharma and healthcare, as well as a rebound in select heavyweights from other sectors. We maintain our view to stay stock-specific and hold positions on both sides.

Despite ending higher for the second straight session, markets lacked conviction as indices came off their early highs amid late profit-taking in several sectoral stocks. The mood remains that of caution as foreign investors have not softened their stance on Indian equities with rupee's record fall against the dollar continuing to create uncertainty amongst the investors.

Indian rupee ended at fresh record low at 85.54 per dollar on Friday versus previous close of 85.26.

Indian benchmark indices ended with gains on December 27 with Nifty above 23,800.

At close, the Sensex was up 226.59 points or 0.29 percent at 78,699.07, and the Nifty was up 63.20 points or 0.27 percent at 23,813.40. About 1866 shares advanced, 1946 shares declined, and 113 shares unchanged.

Dr Reddy's Labs, M&M, IndusInd Bank, Eicher Motors, Bajaj Finance were among the major gainers on the Nifty, while losers are Hindalco Industries, SBI, ONGC, Coal India, Bharat Electronics.

BSE Midcap index is trading flat while smallcap index up 0.3 percent.

Among sectors, auto, pharma, media up 0.4-1 percent, while realty, PSU Bank, oil & gas, metal, indices down 0.5-1 percent.

#1 Company is not seeing any spillover of stress from microfinance or short-term personal loans

#2 Asset quality remains largely stable

#3 Demand continues to remain strong in affordable segment, particularly in self-construction

#4 Company has ability to penetrate deeper into its existing states

#5 Within the next 12-24 months, it could potentially become first new-age affordable housing company

Indian Rupee hit a record low on Friday on dollar demand from importers towards the end of the month and outflows from foreign investors (FIIs). Rising US treasury yields and crude oil prices also weighed on the Rupee.

We expect Rupee to trade with a negative bias on strength in the US Dollar and month-end/year-end Dollar demand from importers and OMCs. FII outflows may also weigh on the Rupee.

However, any intervention by the RBI may support Rupee at lower levels. Traders may take cues from goods trade balance data from the US. USDINR spot price is expected to trade in a range of Rs 85.30 to Rs 85.85.

The Board has approved the slump sale of a 57 MW captive power plant to the company’s subsidiary IGREL Mahidad, for Rs 200 crore. Additionally, the Board has approved an investment of up to Rs 40 crore in the company’s subsidiary IGREL Mahidad, and Rs 200 crore in Flurry Wind Energy in one or more tranches for a 26% stake. The Board has also approved the purchase of up to 107 MW of power from IGREL Mahidad and 350 MW from Flurry Wind Energy at Rs 4 per unit.

Tokyo-based Fujita Corporation backed Neilsoft has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of Rs 5, is a mix of fresh issue of shares up to Rs 100 crore and an offer-for-sale for sale up to 8 million shares by Promoters and Other Selling Shareholders.

Offer for sale consists of shareholders selling shares up to 1,145,384 by Rupa Harish Shah jointly with Harishkumar Shah, up to 1,255,784 equity shares by Netsophy Private Limited, up to 147,764 equity shares by Nishit Shah jointly with Rupa Harish Shah, up to 41,376 equity shares by Harishkumar Shah jointly with Rupa Harish Shah, up to 2,440,884 equity shares by Small Industries Development Bank of India, up to 1,854,808 equity shares by SICOM Limited and other selling shareholders.

#1 Capacity expansion to aid growth; well-positioned to gain higher market share

#2 Volume growth trajectory to remain strong

#3 Focused on ramping up capacity to 400 mt by 2030

#4 Estimate a volume/revenue/EBITDA/PAT CAGR of 14 percent/19 percent/20 percent/19 percent over FY24-27

European stocks struggled for direction in subdued holiday trading, failing to build on gains in Asia amid a rally in Japanese exporters that benefited from the yen’s recent weakness.

#1 Profitability pressure to continue in H2FY25 due to ongoing challenges in MFI lending

#2 RoAs would remain in the range of 1 percent in H2FY25, prompting a sharp cut to EPS

#3 Cut EPS by 18 percent/14 percent/13 percent in FY25/FY26/FY27

#4 In Q3FY25, slippages expected to rise as the share of company & 4+ lenders is nearly 10 percent

#5 Company could see loan growth dipping to 10-12 percent

#6 Loan growth may fall 12 percent YoY on continued decline in MFI book

On Friday, rupee extended its fall amid strength in dollar index and the U.S. bond yields which hit 7-month highs. A rupee is struggling due to continuous sell-off of the FPI’s in the domestic equity markets. Falling foreign exchange reserves and increasing trade deficits are also pressurizing the rupee.

Today's significant decline in the value of the rupee can be attributed to panic buying by Indian importers who are either partially or fully unhedged in their open trades or positions. Market indicators suggest the currency may remain volatile, potentially weakening further to the 86 mark in the days ahead.

LCL volume increased YoY for the fourth consecutive month and stood at 718’000 cubic meters for the month of November 2024 as compared to 714’000 cubic meters in November 2023 and 746’000 cubic meters in October 2024.

The Sensex was up 283.20 points or 0.36 percent at 78,755.68, and the Nifty was up 82.95 points or 0.35 percent at 23,833.15. About 1705 shares advanced, 1686 shares declined, and 92 shares unchanged.

Ircon International and Northeast Frontier Railway have executed terms and conditions / (MoUs) for “Outsourcing of TRD Maintenance & Breakdown attention work under Nine OHE Depots of newly commissioned OHE & PSI Assets of Tinsukia Division of Northeast Frontier Railway” And “Outsourcing of TRD Maintenance & Breakdown attention & related work under 11 Nos OHE Depots of newly commissioned OHE & PSI Assets of Lumding Division of Northeast Frontier Railway”. Total consideration for both the Work would be Rs 89 crore (approx.).

JSW Group is exploring partnerships with multiple auto makers including China’s Geely Automobile Holdings for launching more EVs in India, repoted The Times of India.

The company has signed a License Agreement for a Lemon Tree Hotel with 76 rooms in Bapane, Maharashtra. The property will be managed by its subsidiary Carnation Hotels and is expected to open in FY26.

#1 Rupee depreciates 3 percent versus dollar in 2024

#2 Rupee set to post yearly losses versus dollar for 7 consecutive years

#3 Rupee set to post biggest monthly losses in 2 years

The Sensex was up 350.68 points or 0.45 percent at 78,823.16, and the Nifty was up 107.70 points or 0.45 percent at 23,857.90. About 1770 shares advanced, 1564 shares declined, and 112 shares unchanged.

The Board has approved the demerger of the company’s industrial business into SKF India (Industrial), a wholly owned subsidiary of the company, which is subject to the receipt of requisite approvals, including from the National Company Law Tribunal, BSE, National Stock Exchange of India, and the Securities and Exchange Board of India.

SKF Industrial will issue 1 equity share for every 1 share held by eligible shareholders of SKF India. SKF Industrial will be listed on BSE and NSE.

The said scheme of arrangement will result in the creation of two listed companies with mirror shareholding, with the resulting company housing the industrial business and the company housing the automotive business.

The company’s subsidiary Juventus Estate (as a licensee/landowner) has obtained registration for the development of the residential project “Indiabulls Estate & Club-I” at Sector 104, Gurugram, on the 8-lane Dwarka Expressway, from the Haryana Real Estate Regulatory Authority in Gurugram.

Additionally, the Board will meet on December 13 to consider raising funds via the issue of equity through a qualified institutions placement or preferential issue.

Shilpa Medicare Limited, Unit IV, Jadcherla, Telangana, India and Shilpa Medicare Ltd, Unit VII, Nacharam, Hyderabad, Telangana, India had undergone a GMP inspection by Ministry of Health, Belarus for GMP certification from the Eurasian Economic Union in October 2024.

Both units of Shilpa Medicare Ltd (Unit IV and Unit VII), have now received GMP approval of Eurasia, the member countries for which are Belarus, Russia, Kazakhstan, Kyrgyzstan and Armenia.

This approval will open up significant business opportunities in these countries.

As the nation pays homage to Manmohan Singh, the architect of liberalization in India, investors must be acknowledging with gratitude the wealth created by the Indian stock market after the initiation of liberalisation in 1991. Sensex which was around 1000 in 1991 has multiplied about 780 times since then to trade above 78000 now delivering excellent returns to long-term investors. The market will continue to deliver superior returns to investors in the years to come since the India Growth Story, which liberalisation triggered, is very much intact.

Meanwhile, short-term bumps on the economic growth path will cause corrections and market volatility like what we are witnessing now. The strongest headwind for the market now is the FII selling triggered by strong dollar (dollar index staying above 108) and attractive US bond yields with the 10-year yielding 4.35%. A change in FII strategy from selling to buying will happen when macros indicate recovery in growth and corporate earnings.

The private sector lender has participated in the initial public offering (IPO) of DAM Capital Advisors through an offer-for-sale process and divested its entire shareholding of 8.16% in DAM. After this transaction, the bank no longer holds any equity shareholding in DAM Capital. The IPO was open from December 19 to December 23.

The company’s subsidiary, Dixon Electro Manufacturing, has signed an MOU with Cellecor Gadgets for the manufacturing of refrigerators and related components for Cellecor.

Sanathan Textiles shares made a healthy stock market debut to list at Rs 422 per share on the NSE against the offer price of Rs 321, a significant premium of 31.56 percent.

Transrail Lighting shares made their stock market debut today, listing at Rs 590 on the NSE, marking a premium of 37 percent over the issue price of Rs 432 per share. The robust listing was broadly in line with market expectations, and comes on the back of strong investor demand during the IPO, which was subscribed 81 times.

Engineering and construction company Transrail Lighting raised Rs 839 crore through its IPO, which closed on December 23. The public issue included a fresh issue of Rs 400 crore and an offer-for-sale of Rs 438.9 crore by promoter Ajanma Holdings. Proceeds from the fresh issue will be utilised for working capital requirements, capital expenditure, and general corporate purposes.

The Board has approved the slump sale of a 57 MW captive power plant to the company’s subsidiary IGREL Mahidad, for Rs 200 crore. Additionally, the Board has approved an investment of up to Rs 40 crore in the company’s subsidiary IGREL Mahidad, and Rs 200 crore in Flurry Wind Energy in one or more tranches for a 26% stake. The Board has also approved the purchase of up to 107 MW of power from IGREL Mahidad and 350 MW from Flurry Wind Energy at Rs 4 per unit.

The loss amounting to Rs 1,005.1 crore, caused by a flash flood at the Teesta-V Power Station (510 MW) in Sikkim, has been revised to Rs 1,075.97 crore. The company has received Rs 150 crore for material damage loss, while a payment of Rs 250 crore for business interruption loss is in the advanced stage of approval and is likely to be released by the insurer shortly.

Furthermore, the company anticipates that three units of 250 MW each of the Subansiri Lower HE project will be completed by May 2025, and the remaining five units (each of 250 MW) will be completed by May 2026, in a phased manner.

Suyog Telematics has signed Memorandum of Understanding with Lotus Tele Infra for the purpose of acquisition of 100% of the equity shares capital of Lotus Tele from the sellers for an aggregate consideration of Rs 13.5 crore payable by the Company by way of lumpsum consideration.