Closing Bell: Nifty at 20,100, Sensex up 728 pts; except realty, all sectors gain

While Nifty decisively breached the level of 20000, a comparison of the large, mid, and small caps throws an interesting picture. While Nifty comprising of the large caps is yet to cross its all-time high (ATH) level, the mid-cap and the small-cap indices are already past their ATH.

The midcap and the small-cap indices have had a decent correction over the past two months and breached the all-time high before the broader market. This indicates that the mid and small cap stocks will continue their upward trend going forward.

Now with the market anticipating a rate hike pause, the crude price cooling down, and easing of geopolitical tensions, sector-specific action might be evident. Sectors like Chemical and IT will have greater sustainability and momentum in this rally as they were laggards in the previous rally and the external conditions are easing for them.

Markets edged strongly higher in response to yesterday’s breakout and gained over a percent. After the gap-up start, Nifty moved from strength to strength and settled around the day’s high at 20,096.60 levels. Most sectors participated in the rally however the highlight was the performance of the banking and financials majors, which contributed maximum to the gains. Besides, the broader indices too traded in tandem and gained nearly a percent each.

The strength in the banking index has helped Nifty to regain momentum and we expect the prevailing tone to continue. Nifty may take a breather around the previous record high i.e. 20,222.45 levels and then gradually inch toward the 20,500 level. We thus suggest focusing on quality large cap names from across sectors and picking selectively from the broader indices.

In a remarkable mid-week session, the Sensex surged by over 700 points, closing at 66,901.91, with the Nifty reclaiming the 20,000 mark and closing at 20,096.60. All sectoral indices, except for realty, concluded the session in the green.

With all engines firing, global sentiments are positive. The US Dollar index is on a downward trend, US Bond yields have hit a 10-week low at 4.3%, and FIIs are actively buying, raising hopes that tomorrow might witness the NIFTY reaching a new high, surpassing its lifetime peak of 20,222.45

However, a note of caution is crucial as state election results are imminent this week. Exit poll results will be available tomorrow evening after the conclusion of the last phase of elections in Telangana. It is advisable to trail your stop loss in light of these developments.

The market saw incredible upward momentum today, Nifty surpassing the 20,000 mark, driven by strong listing gains of ongoing IPOs and dovish statements from US Fed officials, intensifying expectations for early rate cuts. This was demonstrated by the rise in Mid & Small caps and drop in US bond yields and Dollar index.

Ease in yield is attracting foreign funds to emerging markets. Indian IT, automotive, banking, and oil & gas led the overall momentum, while real estate is lagging after hitting a record high.

Looking ahead investors will closely monitor the outcome of the forthcoming exit poll, the OPEC+ meeting, and India's GDP data to assess the short-term trajectory.

The BSE market cap's ascent to the USD 4 trillion mark signals the start of a fresh momentum in the stock market. Indian stock market is rallying due to solid Q2 earnings and a drop in crude oil prices. Domestic liquidity has provided support to the market, but the lack of foreign fund inflows due to high US bond yields has been a hindrance.

Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract foreign institutional investors (FIIs) into the Indian equity market.

The consistent decline in the Consumer Price Index over the past four months has also sent out a positive signal to the market. Despite the strong fundamentals, there may be some volatility in the market leading up to the state election results which are due on December 3. Having said that, we can definitely say that India's growth story remains intact, and the market will be on an upward trajectory going ahead.

Ultratech Cement has acquired a 0.54 mtpa cement grinding assets of Burnpur Cement Limited, located at Patratu in Jharkhand at a consideration of Rs169.79 crore.

UltraTech Cement closed at Rs 8,721.80, down Rs 6.20, or 0.07 percent on the BSE.

The Nifty index surged past the psychological milestone of 20,000 points, attaining a 10-week high and registering a noteworthy 5% uptick this month. This commendable upswing in the index can be attributed to a confluence of factors. Firstly, uncertainties surrounding a potential U.S. interest rate hike have been eased by a series of dovish signals from Federal Reserve officials. Additionally, the resurgence of FII buying and a substantial buying of domestic investors, injecting a robust 11,139 crores into the cash segment this month, have played pivotal roles in propelling the index.

The buoyant sentiments of the market are poised to endure, with the anticipation of scaling fresh all-time highs in the coming month. This optimism is underpinned by vigorous buying activities in the Information Technology and banking sectors, which collectively command a weightage of 51.50% in the Nifty 50 index.

Furthermore, the Bombay Stock Exchange (BSE) has achieved a historic milestone, with its market capitalization crossing the $4 trillion mark for the first time. This expansion is poised to sustain momentum as the prospect of foreign investors redirecting their investments towards India, spurred by this dovish stance, serves as a compelling catalyst for the continued growth of the Indian equity market.

Nifty is likely to face resistance near 20220 which if broken then 20340 will act as the next resistance. Bank Nifty may face resistance near 44750, and then 45000

The bulls dominated today's trade by breaching the resistance levels in one go and settled at 20,096.60 with gains of 206.90 points. Among the sectors, Auto and BankNifty participated the most in the rally while marginal pressure (profit booking) was observed in the Realty space.

The Tech sector also performed well by ending the session with gains of 1.53%. The Index has formed a big positive candle on the daily chart which suggests continuation of the current move and is likely to register a fresh high in the coming days.

The immediate resistance comes at the record levels i.e. 20,200 while the downside is protected at 19,915.

Indian rupee closed flat at 83.32 per dollar versus previous close of 83.34.

Benchmark indices ended on a strong note on November 29 with Nifty above 20,000 for the first time after September 20, 2023.

At close, the Sensex was up 727.71 points or 1.10 percent at 66,901.91, and the Nifty was up 206.90 points or 1.04 percent at 20,096.60. About 1828 shares advanced, 1706 shares declined, and 123 shares unchanged.

Top gainers on the Nifty were Hero MotoCorp, M&M, Axis Bank, Wipro and Tata Motors, while losers included ONGC, Nestle India, Eicher Motors, Adani Enterprises and Divis Lab.

Except realty, all other sectoral indices ended in the green with auto, bank, Information Technology and oil & gas up 1 percent each.

BSE Midcap index up 0.8 percent and smallcap index up 0.4 percent.

Ramco System Korea Company Limited has been incorporated in South Korea as a Wholly Owned Subsidiary (WOS) of Ramco Systems.

-Neutral call, target Rs 3,750 per share
-Q4FY23 showed stable headline performance, limited catalysts in near-term
-Company posted a healthy 25 percent/36 percent/50 percent YoY growth in Q4 topline/EBITDA/profit, respectively
-Q4 performance implies a 7 percent/2 percent/10 percent best versus consensus estimate
-New orders at Rs 4,490 crore was a growth of 12 percent YoY
-Company had a strong FY23 new order of Rs 46,380 crore (up 136 percent YoY, up 6 percent ex of Loco order)
-At 12.1 percent EBITDA margins, company missed estimate by 52 bps
-EBITDA margin of 12.1 percent was better versus UBS estimate by 180 bps for Q4
-Management announced capex to double transformer capacity to 30,000 MVA
-Management Announced expansion in vacuum interrupter for a total capex of Rs 420 crore

-Buy call, target Rs 293 per share
-Company announced entry into non-carbon black space
-Company acquires Aquapharm Chemicals for Rs 3,800 crore, all cash
-FY23 revenue Rs 2050 crore/EBITDA – Rs 420 crore (20 percent Margin), H1FY24 - Rs 1,000 crore with Rs 190 crore EBITDA
-Effectively paid 9x FY23 EBITDA/10x FY24 EBITDA
-Transaction is expected to close by Q4FY24, initially to be debt-funded
-Strategically, Aquapharm Chemicals’ deal further reduces company’s tyre industry concentration
-The deal should also reduce associated volatility which is a key positive

Sensex Today | Nifty Bank index rose 1 percent supported by Axis Bank, Bandhan Bank, HDFC Bank:

The BSE Midcap and BSE Small Cap indices experienced a sustained rally as SENSEX broke out of its consolidation range and BSE Bankex recovered from its losses. The relentless ascent in the mid cap and small cap segments propelled the respective indices into uncharted territory, where target prices would be determined using Fibonacci extension.

Sentiment remains bullish as the recent breakout in SENSEX is bolstering the broader market, which appeared somewhat fragile or risky a few days ago. Going forward, the uptrend is likely to continue in the mid and small cap space, with periodic dips providing opportunities to buy in.

Indian Rupee appreciated by 0.04% on Wednesday on positive domestic markets and FII inflows over the past three consecutive sessions. Domestic markets surged ~1%. However, a slight recovery in the US Dollar index and crude oil prices capped sharp gains. US Dollar declined for the fourth successive session on Tuesday on dovish comments from US Federal Reserve officials. Economic data from US however, remained mixed.

We expect Rupee to trade with a slight negative bias on Dollar demand from importers towards end of the month. However, fresh foreign inflows and softness in US Dollar may support Dollar at lower levels. Traders may take cues from GDP data from US. Investors may also take cues from India’s GDP and fiscal deficit data towards the end of the month. USDINR spot price is expected to trade in a range of Rs 83 to Rs 83.60.

Honda plans to invest $3.4 billion in its electric motorcycle business by 2030, aiming to sell 4 million units annually, up from the previous goal of 3.5 million. They will introduce 30 new electric motorcycle models globally by 2030, and from 2027, dedicated electric motorcycle plants will be in operation worldwide. Innovative technology will cut assembly line lengths by approximately 40%, it said in a release on Wednesday.

India's stock market faces volatility due to the upcoming general election, coinciding with a moderated economic growth outlook. Societe Generale SA strategists downgraded India's equities from overweight to neutral, anticipating a temporary halt in market outperformance until the polls conclude.

Broking house Nirmal Bang remain positive about Sun Pharma on a long-term basis due to (i) Ramp-up of Branded/Specialty business in the US (ii) Continued growth in India business (iii) Potential inorganic opportunity given the strong balance sheet (iv) Maintenance of healthy EBITDA margin at ~27% despite higher R&D spends.

However, additional cost and loss of revenue due to the Halol import alert and Mohali plant issues are likely to be near term concerns for Sun Pharma.

Maintain buy on Sun Pharma with a revised Target Price of Rs 1,371, valuing it at 26x Sept’25E EPS of Rs 48.

Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys and Bank of Commerce (BankCom), an affiliate of San Miguel Corporation (SMC) group and one of the fast-growing universal banks in the Philippines, today announced the bank’s decision to select Infosys Finacle Suite for its core banking transformation.

Karnataka Industrial Areas Development Board has, on terms & conditions stated in its letter dated November 27, 2023 allotted 15.00 acres of land to the Company in the Japansese Industrial Township Vasanthanarasapura 3rd Phase Industrial Area, Tumkur District for setting up a facility for manufacture of “Electrical Generators, Motors, their sub-assemblies and Parts.

Sensex Today | Market at 2 PM

The Sensex was up 594.00 points or 0.90 percent at 66,768.20, and the Nifty was up 172.10 points or 0.87 percent at 20,061.80. About 1721 shares advanced, 1452 shares declined, and 96 shares unchanged.

Havells India has launched its consumer durable brand ‘Lloyd’ in the Middle East market. Lloyd has partnered with TeknoDome, a distribution conglomerate headquartered in Dubai, for the desired coverage and reach in the Middle East region.

PCBL’s core business of carbon black seems to be on strong footing given favourable dynamics of the global CB market. Moreover, potential acquisition of ACPL would provide shift from carbon molecule to phosphorous/amino acids molecule and marks foray in specialty chemicals space (which fetches better valuation compared to commodity business of carbon black given higher margin and strong long-term growth).

Broking house maintain positive view on PCBL and expect a 12-14% upside potential from current level. At CMP, stock trades at 16x/14x FY25E/F26E EPS.

Sensex Today | Nifty Bank index up 1 percent led by Bandhan Bank, Axis Bank, AU Small Finance Bank:

Sanjeev Kumar has resigned as Group Chief Financial Officer (CFO) of Global Health, with effect from December 15, 2023.

Wipro has launched Continuous Compliance Solution built on Amazon Security Lake in collaboration with Amazon Web Services (AWS). This solution is designed to equip enterprises with advanced capabilities to meet compliance requirements.

The Nifty's recent crossing of the psychological level of 20,000 and the BSE market cap's ascent to the $4 trillion mark signal the start of a fresh momentum. Domestic liquidity has provided support, but the lack of foreign inflows due to high US bond yields has been a hindrance.

Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract foreign institutional investor (FII) inflows into the Indian equity market. Despite strong fundamentals, volatility is expected leading up to the state election results. However, any weakness caused by this could present a compelling buying opportunity.

The market appears primed for a pre-election rally, and we can anticipate the Nifty soon surpassing 21,000. 19,500 will now serve as a support level.

Sensex Today | Market at 1 PM

The Sensex was up 496.26 points or 0.75 percent at 66,670.46, and the Nifty was up 147.80 points or 0.74 percent at 20,037.50. About 1716 shares advanced, 1415 shares declined, and 112 shares unchanged.

Capacite Infraprojects has received an order from Tridhaatu Aranya Developers LLP for total contract value of Rs 101 crore (excluding GST) for Project – Aranya Phase-II.

Sensex Today | BSE Power index up 1 percent led by BHEL, Adani Energy, JSW Energy:

Nifty looks bullish on the Daily charts but also getting into a slightly overbought zone with strong resistance now at 20195. Investors should book profits at current levels as Daily close below the support of 19956 could lead to the target of 19700 in the near term.

Nifty Bank looks bullish on the Daily charts with strong resistance now at 40410. A daily close above this resistance could lead to a target of 45000 in the near term. Strong support will be at 43740.

Nifty has experienced a significant breakout above its crucial resistance zone of 19,850 - 19,875 in Tuesday's trading session. Going forward, the index appears to be in a 'buy on dips' mood, with 19,500 to 19,600 being a good buy zone for the short term. Immediate support lies near the 19,800 to 19,850 mark, and the benchmark seems poised to reach new all-time highs of 20,200 and beyond.

Bank Nifty has broken out above its crucial resistance mark of 44,100. With the benchmark witnessing a good trend reversal on its daily charts, it seems poised for a rally towards 44,700 and 45,000. Immediate support is near the 44,000 mark, below which the next support would be around the 43,750 levels. Any pullback towards this zone of 43,750 to 44,000 should offer a good buying opportunity on Bank Nifty.

For the first time yesterday, Nifty index closed in the gap zone around 19900 which was created in the third week of September. This is notable because it faced four price rejections over past six weeks.

Curiously, India VIX had surged by more than 13 percent since yesterday which is an indication of a possibility that market participants are hedging their existing long positions with Index Options ahead of the Exit Poll & Actual results of 5 State Election later on in this week.

With aggressive Put writing in 20000 & 19950 strikes, we feel 19930-19950 zone could act as a strong support & till this holds, Index can continue its upmove towards 20100-20150 levels on the upside.

A decisive surge over 20000 has triggered a fresh upside in the Nifty index. Highest Open Interest is noted in 20000 PE, 19950 PE and 19900 PE, showcasing strong support near the 19950 mark. For today, Nifty may see accumulation if any selling pressure emerges near 20100 – 20070.

On the upside, the next breakout exits at 20150. An aggressive move over the same could propel Nifty towards 20300 mark.

-Overweight call, target Rs 200
-Reiterated guidance for 20 percent loan growth & 20 percent ROE in F24, driven by non-gold businesses.
-For gold loans, they guided for 8 percent growth in F24 with a focus on maintaining yields at 21-22 percent.
-On Non-gold non-MFI business underwriting quality, management is confident about keeping Credit costs at 1-1.5 percent
-Company awaiting a response from SEBI on Asirvad MFI IPO

Sensex Today | BSE Oil & Gas index gianed 1 percent supported by Adani Total Gas, Petronet LNG, BPCL:

Crude oil prices rebounded from their recent lows in anticipation of the upcoming OPEC+ meetings and the dollar index's decline. The market anticipates potential agreements among OPEC+ members to implement additional output cuts in response to the significant decline in crude oil prices, which could provide support at lower levels. The recovery in crude oil prices was further fueled by dovish comments from Fed member Waller and the weakening dollar index, which reached nearly four-month lows, contributing to the support for crude oil prices.

According to the U.S. API, crude oil inventories decreased by 817,000 barrels in the past week, adding to the positive momentum in crude oil prices. This week, we anticipate volatility in crude oil prices due to fluctuations in the dollar index and the ongoing OPEC+ meetings. The support levels for crude oil are identified at $75.85–75.10, with resistance expected at $77.20-77.90 in today's session. In terms of INR, crude oil is likely to find support in the range of Rs 6,330-6,250, while resistance is projected at Rs 6,480-6,540.

Bharat Heavy Electricals (BHEL) and Electricité de France S.A., France (EDF), a French state-owned company, have signed a Memorandum of Cooperation (MoC) to explore the opportunity to maximise the local content of the Jaitapur nuclear power plant project (6x1650 MWe) to be established by NPCIL in India.

Further, BHEL and EDF will also explore larger collaboration for the European pressurized reactors (EPRs) and for the NUWARD SMR (small modular reactor).

Deloitte Touche Tohmatsu India LLP, has entered a strategic partnership with Ramco Systems. This partnership leverages Ramco's innovative payroll platform in conjunction with Deloitte's expert advisory and managed services. Together, they are committed to delivering an all-encompassing payroll solution that ensures operation services, compliance, seamless user experience, and comprehensive coverage spanning 150+ countries, all accessible through a single, unified payroll platform.

Sensex Today | Market at 12 PM

The Sensex was up 463.93 points or 0.70 percent at 66,638.13, and the Nifty was up 138.00 points or 0.69 percent at 20,027.70. About 1811 shares advanced, 1300 shares declined, and 96 shares unchanged.

Metallurgica Bresciana S.p.A., Italy, a wholly owned subsidiary of the Sterlite Technologies, has agreed to sell its 40% of outstanding shares held in Metallurgica Bresciana Maanshan Special Cable Ltd., China, subject to regulatory approvals, if any.

The Torrent Power share zoomed more than 21 percent on November 29 morning to hit a new high of Rs 1,004 on the National Stock Exchange (NSE) on heavy volumes.

A total of 34 lakh shares changed hands on NSE and BSE combined, compared to the one-week average volume of 6 lakh. The stock has risen 22 percent in the last five sessions.

The counter has gained 93 percent this year, outperforming the benchmark Nifty was by a mile, which has risen around 10 percent during the time.

Healthy licence-based power distribution operations with an impressive reduction in transmission & distribution (T&D) losses bode well for Torrent Power, analysts said. Growing energy demand presents challenges as well as opportunities to Torrent Power, they said. Read More

Gold prices hit a six-month high on November 29 on the back of a retreating dollar and rising expectations of a cut in key policy rates by the US Federal Reserve. Spot gold traded at $2,041.55 per ounce, gaining 1.4 percent, the highest since May 10 and US Gold futures rose 1.4 percent to $2,040. READ MORE

Shares of Aster DM Healthcare surged 15 percent and hit a 52-week high of Rs 381.80 in opening trade on November 29 after the company approved the sale of its Middle East or GCC (Gulf Co-Operation Council) business to Alpha GCC Holdings Ltd for around $1.01 billion.

Alpha GCC Holdings will have ownership shared between the promoters/ promoter group of Aster India, while funds will be managed by Middle East private equity firm Fajr Capital Advisors in a shareholding ratio of 35:65 at the closing of the transaction.

Moneycontrol was first to report that Aster DM Healthcare was planning on a mega internal rejig to unlock value and had been in talks with Gulf funds and sovereign funds to sell stakes in its carved-out Middle East business. The report also said that investment banks Credit Suisse and Moelis were roped in as advisors. Read More

Sensex Today | BSE Auto index rose 1 percent led by Hero MotoCorp, M&M, Samvardhana Motherson International:

Sensex Today | Market at 11 AM

The Sensex was up 380.28 points or 0.57 percent at 66,554.48, and the Nifty was up 115.00 points or 0.58 percent at 20,004.70. About 1819 shares advanced, 1225 shares declined, and 119 shares unchanged.

On application being filed by Munjal Auto Industries to Deputy Commissioner of the Income Tax, Vadodara, CPC Bengaluru and Central Board of Direct Taxes (Income tax), Company has received Rectification order u/s 154 of the Income Tax Act, 1961 for A.Y. 2022-23 on November 28, 2023.

Accordingly, the demand amount is reduced from Rs 4,01,42,70,150 to Rs 69,74,520. The matter is under scrutiny assessment and the Company does not expect any financial implications.

Shares of Manappuram Finance gained nearly 6 percent during early trades on November 29 as Indian gold prices reach an all time high.

Gold prices reached an all time high above Rs 62,800 per 10 grams at open on November 29 giving a boost to stocks of gold finance company Manappuram Finance.

Analysts at Morgan Stanley have also given the stock an overweight call with a target price of Rs 200. In a recent meeting with analysts, according to Morgan Stanley, the company reiterated guidance for 20 percent loan growth and 20 percent ROE in FY2024, driven by non-gold businesses. For gold loans, they guided for 8 percent growth in FY2024 with a focus on maintaining yields at 21-22 percent. Read More

IRDEA listing was above street expectations. We believe post listing there would be decent demand for the shares as it had received overwhelming response from all kinds of investors especially from long term funds.

We also believe IREDA can act as a proxy play for the growth in the Indian renewable energy sector. We strongly believe IREDA gives allotted investors a long term opportunity to hold and raid the growth in the sector in serves, hence recommending all allotted investors “Hold for long term” while those who failed to get allotments can accumulate on every dip for holding it for healthy long term returns as markets always reward a player who has high visibility and growth potential.

Bhaveshkumar V Jain has resigned as Executive Director and Chief Financial Officer of HCP Plastene Bulkpack, with effect from November 28.

The New Delhi Television (NDTV) stock extended gains on November 29, rocketing over 16 percent in two days after the company approved a proposal to re-commence regular operations of the NDTV Profit channel in December.

On November 27, the board of Adani Group-backed NDTV announced approval to resume activities of the business news channel from December 8, the company said in a stock exchange filing. Read More

Sensex Today | Nifty Information Technology index up 1 percent supported by Mphasis, Tech Mahindra, Coforge:

Promoter Dhanuka Laboratories sold 13 lakh equity shares, equivalent to 2.56% stake, in Orchid Pharma via open market transaction at an average price of Rs 571.28 per share. UTI Mutual Fund bought 4.45 lakh shares in the company at an average price of Rs 571 per share.

-Buy call, target Rs 130 per share
-Analyst day takeaway shows RBI’s revised risk weights to impact CET-1 by approximately 45 bps
-Loan growth to remain healthy, company guides for FY24 credit growth of 10-12 percent
-Margin outlook steady, NIMs expanded 5 bps QoQ to 3.18 percent
-Asset quality robust, net NPA ratio to decline to <1 percent by Q4FY24
-Strong focus on profitability, co aims to deliver sustainable RoA of >1 percent

Varun Beverages has incorporated a subsidiary company in Mozambique, namely VBL Mozambique, SA to carry on the business of distribution of beverages.

Sensex Today | BSE Power index up 1 percent led by Adani Energy, Adani Green Energy, CG Power:

CSB Bank has decided to increase the marginal cost of funds based lending rates (MCLR) by 10-20 bps across tenures. The revised lending rates will be applicable with effect from December 1, 2023.

The India Renewable Energy Development Agency (IREDA) made an impressive market debut on November 29, listing at a 56.25 percent premium to the issue price of Rs 32. The stock opened at Rs 50 on both NSE and BSE.

Ahead of the listing, the stock was trading at a 37 percent premium to the issue price in the grey market, an unofficial ecosystem where shares start trading much before the allotment and continue till the listing day. Most investors track the grey market premium to get an idea of the listing price.

-Overweight call, target Rs 2,810 per share
-Company turning free cash flow (FCF) positive now, earnings cut ending as well
-Recent stock weakness corresponds to 21 percent cuts to FY24 EPS forecasts since June’22
-Expectations are now more realistic for the company
-Telecom & retail should help drive growth in 12-month forward number hereon
-Telecom & retail-driven growth should help stock

Sensex Today | BSE Midcap index up 0.7 percent supported by Torrent Power, Muthoot Finance, CG Power:

Avneesh Barua has resigned as Chief Financial Officer (CFO) of Trident. His last working day as the CFO of the company would be November 28.