Benchmarks hit new highs, Nifty settles above 21,450 mark

The domestic stock market showed resilience on Tuesday as benchmark indices overcame early losses to achieve new highs. The Sensex hit an all-time high of 71,623, while the Nifty hit a record high of 21,505. Energy, FMCG and utilities shares were in demand. On the other hand, IT, and auto shares were under pressure. As foreign institutional investors are expected to reduce their activity before the holiday season, domestic institutional investors are anticipated to drive market momentum. Furthermore, the approaching new year and the impending interim Budget could bring about market volatility and impact stock movement.

The barometer index, the S&P BSE Sensex advanced 122.10 points or 0.17% to 71,437.19. The Nifty 50 index added 34.45 points or 0.16% to 21,453.10. Both the indices attained record closing high levels.

In the broader market, the S&P BSE Mid-Cap index slipped 0.31% and the S&P BSE Small-Cap index rose 0.10%.

The market breadth was negative. On the BSE, 1,828 shares rose and 1,940 shares fell. A total of 136 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 0.23% to 13.87.

Economy:

According to an International Monetary Fund (IMF) assessment report, India`s economic growth is expected to remain robust, supported by macroeconomic and financial stability. The report highlights the positive impact of the country`s digital public infrastructure and government development programs on sustaining growth potential. It also projects a decrease in the current account deficit to 1.8% of GDP in FY2023/24, driven by resilient services exports and lower oil import costs. The IMF forecasts a real GDP growth rate of 6.3% in FY2023/24 and FY2024/25 while expecting a gradual decline in headline inflation.

In addition, the World Bank`s "Migration and Development Brief" indicates a 12.3% increase in inward remittances to India in 2023, totaling $125 billion, which accounts for 3.4% of the country�s GDP. Furthermore, India remains the largest recipient of remittances globally, with 66% of all remittances to South Asia.

Numbers to Tracks:

The yield on India`s 10-year benchmark federal paper added 0.24% to 7.170 as compared with previous close 7.153.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1900, compared with its close of 83.1000 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement declined 0.19% to Rs 62,171.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.02% to 102.58.

The United States 10-year bond yield declined 1.24% to 3.907.

In the commodities market, Brent crude for February 2024 settlement rose 1 cent or 0.01% to $77.96 a barrel.

Global Markets:

Shares in Europe and Asia traded higher on Tuesday as investors assessed the Bank of Japan`s final rate decision for 2023. The BOJ made no change to its negative interest rate policy, holding the benchmark interest rate at -0.1%. The central bank also kept its stance on its yield curve control policy unchanged.

US stocks ended higher on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. A broad but modest rally boosted the S&P 500 and the Nasdaq to solid gains, while the Dow ended flat.

Stocks in Spotlight:

Nestle India gained 4.64% after the company fixed 5 January 2024 as the record date for determining entitlement of equity shareholders for the purpose of sub-division of equity shares of the company such that 1 equity share having face value of Rs 10 each will be subdivided into 10 equity shares having face value of Re. 1 each.

Vedanta rose 0.58% after the board of directors of the company has approved the second interim dividend of Rs 11 per share for the financial year 2023-24. The record date for the purpose of payment of dividend is 27 December 2023.

Sun Pharmaceutical Industries shed 0.48%. The company has entered into agreement to acquire about stake 16.7% shares on fully diluted basis, in Lyndra Therapeutics, Inc., a company based in Massachusetts, engaged in the business of developing novel delivery technology for long-acting oral (LAO) therapies.

Devyani International surged 5.16% after the company announced its entry into Thailand market through acquisition of equity stake in Restaurants Development Company and its holding companies.

PNC Infratech added 1.70%. The civil construction company announced that it has been declared as L1 (first lowest) bidder for a highway project in Madhya Pradesh, for a bid project cost of Rs 1,174 crore.

Jubilant FoodWorks advanced 1.03% after the company�s board approved the appointment of Suman Hedge as executive vice president and chief financial officer (CFO) of the company with effect from 1 march 2024.

India Glycols zoomed 8.23% after the company received a tender by oil marketing companies (OMC�s) and oil companies for supplying ethanol under Ethanol Blended Petrol Programme (EBPP).]

Kaynes Technology India jumped 5.51% after the company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 2,449.96 per share.

IPO Updates:

The initial public offer (IPO) of Happy Forgings received bids for 1,93,44,300 shares as against 83,65,639 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 2.31 times.

The issue opened for bidding on Tuesday (19 December 2023) and it will close on Thursday (21 December 2023). The price band of the IPO is fixed at Rs 808-850 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

Credo Brands Marketing (MUFTI)`s IPO received bids for 2,86,40,405 shares as against 1,37,44,472 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 2.08 times.

The issue opened for bidding on Tuesday (19 December 2023) and it will close on Thursday (21 December 2023). The price band of the IPO is fixed at Rs 266-280 per share. An investor can bid for a minimum of 53 equity shares and in multiples thereof.

RBZ Jewellers` IPO received bids for 1,79,64,900 shares as against 79,00,000 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 2.27 times.

The issue opened for bidding on Tuesday (19 December 2023) and it will close on Thursday (21 December 2023). The price band of the IPO is fixed at Rs 95-100 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

Motisons Jewellers` IPO received bids for 1,07,19,08,000 shares as against 2,08,71,000 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 51.36 times.

The issue opened for bidding on Monday (18 December 2023) and it will close on Wednesday (20 December 2023). The price band of the IPO is fixed at Rs 52-55 per share. An investor can bid for a minimum of 250 equity shares and in multiples thereof.

The IPO of Suraj Estate Developers received bids for 1,99,30,592 shares as against 82,35,293 shares on offer, according to stock exchange data at 17:00IST on Tuesday (19 December 2023). The issue was subscribed 2.42 times.

The issue opened for bidding on Monday (18 December 2023) and it will close on Wednesday (20 December 2023). The price band of the IPO is fixed at Rs 340-360 per share. An investor can bid for a minimum of 41 equity shares and in multiples thereof.

The IPO of Muthoot Microfin received bids for 6,89,23,185 shares as against 2,43,87,447 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 2.83 times.

The issue opened for bidding on Monday (18 December 2023) and it will close on Wednesday (20 December 2023). The price band of the IPO is fixed at Rs 277-291 per share. An investor can bid for a minimum of 51 equity shares and in multiples thereof.

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