KEY EQUITY INDICES END NEAR THE FLAT LINE; DOMS INDS IPO RECEIVES 5.71X SUBSCRIPTION

The domestic equity barometers ended near the flat line, with some positive bias, on Wednesday. After opening above the 20,900 level, the Nifty 50 index failed to hold on to those early gains and slipped into the negative terrain as selling pressure on the domestic bourses intensified. The index hit its intraday low at 20,769.50 in early afternoon trade. However, as the session progressed the index managed to pare all losses and paved its way back into the positive zone. After hitting the day`s high at 20,950, some profit booking emerged and the index settled some points above the 20,900 level.

The barometer index, the S&P BSE Sensex added 33.57 points or 0.05% to 69,584.60. The Nifty 50 index rose 19.95 points or 0.10% to 20,926.35.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 5.09% to 12.07.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.06% and the S&P BSE Small-Cap index added 0.73%.

The market breadth was positive. On the BSE, 2,129 shares rose and 1,646 shares fell. A total of 115 shares were unchanged.

Among the sectoral indices, Nifty Realty index (up 1.61%), Nifty Healthcare index (up 1.20%) and Nifty Pharma index (up 1.12%) outperformed the Nifty50 index.

Meanwhile, the Nifty IT index (down 1.28%), the Nifty Oil & Gas index (down 0.13%) and the Nifty Private Bank index (down 0.07%) underperformed the Nifty 50 index.

Despite the recent run-up in domestic equities, the underlying investor sentiment remains bullish buoyed by the growth momentum in the economy, the sustained buying by DIIs and retail investors, reversal of the FPI strategy from selling to buying and favourable global cues will keep the market resilient.

From the global perspective, message from the US Federal Reserve, which is slated for release late on Wednesday, remains important in setting the global market trend. Investors will look out for the Fed chief�s message before deciding on future course of action.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Wednesday, as investors awaited the U.S. Federal Reserve�s last monetary policy decision of the year.

The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25% to 5.5%, but investors will be analyzing Fed Chair Jerome Powell�s commentary for clues on how soon rate cuts can be expected.

Meanwhile, the U.K. economy contracted 0.3% in October, with the country�s services, production and construction sectors all shrinking, new data from the Office for National Statistics showed Wednesday. The monthly dip follows growth of 0.2% in September and is worse than the 0% change economists had reportedly predicted.

US stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central bank`s last policy decision of the year on Wednesday.

The consumer price index gained 0.1% in November from the prior month. On a year-over-year basis, the print came in at 3.1%. Excluding energy and food, CPI rose 0.3% month over month and 4% year over year.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.16% to 7.263 as compared with previous close 7.275.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4175, compared with its close of 83.3750 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement rose 0.03% to Rs 61,198.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.14% to 104.01.

The United States 10-year bond yield declined 0.34% to 4.193.

In the commodities market, Brent crude for February 2024 settlement advanced 3 cents or 0.04% to $73.27 a barrel.

Stocks in Spotlight:

Laurus Labs declined 1.75%. The company�s wholly owned subsidiary, Laurus Synthesis (LSPL) underwent US FDA inspection for the manufacturing facility in Parawada, Anakapalli, near Visakhapatnam, Andhra Pradesh. The inspection was conducted from 4th December 2023 to 12th December 2023. The company has been issued a Form 483 with five observations and it will address the observations within stipulated timelines.

Life Insurance Corporation of India (LIC) rose 1.65%. The life insurer informed that it increased its stake in Atul to 15,09,793 equity shares from 14,74,172 shares increasing its shareholding to 5.117% from 4.997% of the paid up capital of the company.

CIE Automotive shed 0.65%. The company announced that its board has approved the appointment of Sunil Narke as chief executive officer (CEO) with effect from 1 April 2024.

Granules India fell 1.14%. The drug major announced that it has received approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Pantoprazole Sodium Delayed-Release tablets.

Shilpa Medicare gained 1.83%. The company announced that its Unit VI, Dabaspet, Karnataka has received approval from Therapeutic Goods Administration (TGA), Australia for manufacturing, labeling, packaging and testing of medicinal Oral Mouth Dissolving Films (Wafers).

Indian Bank lost 1.25%. The bank said that its board Tuesday (December 12) has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 414.44 per share. The floor price is at a discount of 5.24% to the scrip�s previous day closing price of Rs 437.35 on the BSE.

KIOCL slipped 1.93%. The operations of Pellet Plant Unit of the company at Mangalore have been temporarily suspended with effect from 12 December 2023 due to non-availability of iron ore fines.

Niraj Cement Structurals jumped 6.07%. The company announced that it has received work order from Jawaharlal Nehru Port Trust (JNPT) worth Rs worth Rs 210.98 crore. The value of the contract from JNPT is more than the present market capitalization of the company, which currently stands at Rs 188.09 crore.

HPL Electric & Power was locked in 10% upper circuit. The company has won smart meter orders worth Rs 545 crore from various prestigious customers in the normal course of business.

IPO Updates:

The initial public offer (IPO) of DOMS Industries received bids for 5,04,55,458 shares as against 88,37,407 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (13 December 2023). The issue was subscribed 5.71 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 750-790 per share. An investor can bid for a minimum of 18 equity shares and in multiples thereof.

The IPO of India Shelter Finance Corporation received bids for 2,65,05,630 shares as against 1,79,10,449 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (13 December 2023). The issue was subscribed 1.48 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 469-493 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

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