INDICES SETTLE WITH TINY LOSSES; NIFTY ENDS BELOW 23,700

The key equity benchmarks concluded Wednesday`s trading session with minor losses. The Nifty index closed below the 23,700 mark after reaching an intraday high of 23,751.85. Sectors like energy, IT, and FMCG witnessed buying interest. Conversely, consumer durables, healthcare, and pharma stocks corrected. Investor sentiment was dampened by a cautious approach ahead of the upcoming earnings season. Additionally, concerns over a potential slowdown in U.S. interest rate cuts also weighed on market sentiment.

The S&P BSE Sensex shed 50.62 points or 0.06% to 78,148.49. The Nifty 50 index lost 18.95 points or 0.08% to 23,688.95.

Trent (down 2.71%), HDFC Bank (down 1.16%) and ICICI Bank (down 1.11%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 1.09% and the S&P BSE Small-Cap index fell 1.12%.

The market breadth was weak. On the BSE, 1,386 shares rose and 2,586 shares fell. A total of 94 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.33% to 14.47.

Economy:

India`s GDP growth is projected to slow down to a four-year low of 6.4% in the current fiscal year (2024-25), according to the first advance estimates released by the National Statistics Office. This lower-than-expected growth is attributed to weak industrial and investment activity. The estimate falls short of both the Reserve Bank of India`s forecast (6.6%) and the government`s projection (6.5-7%). While growth is expected to improve in the second half of the year, the initial slowdown is likely to impact the overall growth figure. These estimates are released early to assist the government in formulating the upcoming Union Budget.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.32% to 6.879 as compared with the previous close of 6.857.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.8700, compared with its close of 85.7450 during the previous trading session.

MCX Gold futures for the 5 February 2025 settlement added 0.19% to Rs 77,680.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.22% to 108.94.

The United States 10-year bond yield shed 0.13% to 4.679.

In the commodities market, Brent crude for the March 2025 settlement gained 61 cents or 0.79% to $77.66 a barrel.

Global Markets:

The Dow Jones index futures were up 132 points, signaling a positive opening for U.S. stocks today.

European stock advanced on Wednesday as investors will awaited European consumer confidence and economic sentiment data. On the earnings front, Shell is set to release its fourth-quarter update.

Asian stocks ended mixed as the yen weakened against dollar. Traders anticipate the Federal Reserve will maintain a cautious approach to interest rate cuts, given recent data indicating a resilient U.S. economy and labor market.

Tuesday`s data showed a rise in U.S. job openings alongside a slight slowdown in hiring, suggesting the labor market remains strong. This, coupled with stronger-than-expected purchasing managers` index data, has fueled concerns about persistent inflation.

Job openings, a measure of labor demand, rose 259,000 to 8.098 million by the last day of November, the Labor Department`s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. Meanwhile, U.S. services sector PMI increases to 54.1 in December from 52.1 in November.

These factors are expected to limit the Fed`s ability to aggressively cut interest rates, aligning with the bank`s recent cautious stance. The upcoming release of December`s nonfarm payroll data on Friday will provide further insights into the interest rate outlook.

US stock indices declined on Tuesday, driven by rising Treasury yields and concerns about inflation. The S&P 500 fell 1.1%, the Nasdaq Composite dropped 1.9%, and the Dow Jones Industrial Average slipped 0.4%.

Nvidia, a leading technology stock, experienced a significant decline on Tuesday despite announcing new products at the Consumer Electronics Show. While these innovations bode well for Nvidia`s long-term growth, analysts noted a limited impact on the company`s near-term prospects.

Stocks in Spotlight:

Exicom Tele-Systems hit an upper circuit limit of 5% after the company signed an EV charging partnership with Mufin Green Infra. The partnership will focus on creating end-to-end EV charging solutions, encompassing charger installation, infrastructure setup, and software integration. The collaboration will target a wide range of customers, including charge point operators, bus operators, state utilities, and other end-users.

Transformers and Rectifiers (India) added 0.72%. The company�s consolidated net profit surged 252.92% to Rs 55.48 crore on 51.44% rise in revenue from operations to Rs 559.36 crore in Q3 FY25 over Q3 FY24. Meanwhile, the company�s board has approved the issue of bonus equity shares in the proportion of 1:1. The same shall be credited within 2 months from the date of board`s approval, on or before 7 March 2025. Further, the board has also approved issuance of equity shares through qualified institutional placement (QIP) for an amount not exceeding Rs 750 crore.

United Breweries declined 3.53% after the company decided to suspend the supply of its beer to Telangana Beverages Corporation (TGBCL) due to pricing issues and unpaid dues.

Delta Corp surged 3.83% following the Supreme Court`s decision to hear a plea from the online gaming industry. The industry is seeking a stay on show-cause notices issued by tax authorities demanding a total of Rs 1.12 lakh crore in alleged Goods and Services Tax (GST) evasion.

Ashiana Housing jumped 6.87% after the company reported a 2.6 times increase in the sale value of the area booked to Rs 454.31 crore in Q3 FY25 from Rs 173.88 crore in Q3 FY24.

Larsen & Toubro (L&T) slipped 1.26% after the company announced that its heavy engineering arm had secured multiple orders in Q3 of FY25, both in overseas and domestic markets.

Tata Steel fell 0.56%. The company informed that its India crude steel production stood at 5.68 million tons (MT) in Q3 FY25, up 6% as compared with 5.35 MT in Q3 FY24.

Prime Focus shed 0.60% after the company announced that its subsidiary, Prime Focus Motion Pictures (PF Motion), has incorporated a wholly owned subsidiary named DNEG Creative on 7 January 2025.

Signatureglobal (India) rose 0.51%. The company said that its pre-sales zoomed 120% to Rs 2,770 crore in Q3 FY25 from Rs 1,260 crore recorded in Q3 FY24.

Jindal Worldwide shed 0.36%. The company�s board has approved the proposal to issue bonus shares in a 4:1 ratio during a meeting held on 7 January 2025.

Birlasoft shed 0.66%. The company announced that its chief executive officer (CEO), Roopinder Singh, who was also responsible for the Americas geography, has resigned, with effect from 7th February 2025.

WPIL rallied 1.50% after the company announced that its European subsidiary, Gruppo Aturia, has successfully acquired 100% shareholding of MISA Italy, located in Arzignano, Italy.

Ola Electric Mobility rose 0.48% after declining as much as 5 % in the intraday. SEBI issues an administrative warning to the company for violating disclosure rules. SEBI found that CEO Bhavish Aggarwal prematurely announced expansion plans on social media before informing stock exchanges.

Tata Technologies added 054%. The company signed a strategic memorandum of understanding (MoU) with Telechips to innovate vehicle software solutions for next-gen software-defined vehicles (SDVs).

IPO Update:

The initial public offer (IPO) of Standard Glass Lining Technology received bids for 3,80,24,68,416 shares as against 2,08,29,567 shares on offer, according to stock exchange data at 17:00 IST on 8 January 2025. The issue was subscribed to 182.55 times.

The issue opened for bidding on 6 January 2025, and it will close on 8 January 2025. The price band of the IPO is fixed between Rs 133 and Rs 140 per share. An investor can bid for a minimum of 107 equity shares and in multiples thereof.

Quadrant Future Tek`s IPO received bids for 28,38,99,400 shares as against 57,99,999 shares on offer, according to stock exchange data at 17:00 IST on 8 January 2025. The issue was subscribed to 48.95 times.

The issue opened for bidding on 7 January 2025, and it will close on 9 January 2025. The price band of the IPO is fixed between Rs 275 and Rs 290 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

Capital Infra Trust`s IPO received bids for 6,82,16,700 shares as against 8,83,83,750 shares on offer, according to stock exchange data at 17:00 IST on 7 January 2025. The issue was subscribed to 0.77 times.

The issue opened for bidding on 7 January 2025, and it will close on 9 January 2025. The price band of the IPO is fixed between Rs 99 and Rs 100 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

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