MARKET DEFIES VOLATILITY, RISES FOR 2ND DAY; NIFTY ENDS ABOVE 19,800

In a day marked by volatility, the domestic stock market closed higher for the second straight session. The market initially opened on a flat note but steadily ascended in the first half of the trading session. However, mid-session selling led to a temporary dip in the indices. Nevertheless, a surge in last-hour buying activities reversed the losses, resulting in a higher close.

The barometer index, the S&P BSE Sensex gained 92.47 points or 0.14% to 66,023.24. The Nifty 50 index added 28.45 points or 0.14% to 19,811.85.

The gains observed in the market were somewhat restrained, largely due to the cautious stance taken by the US Federal Reserve in its latest minutes, which did not provide a clear indication of a potential rate cut. This led to a sense of uncertainty among investors, impacting the market sentiment to some extent.

In the broader market, the S&P BSE Mid-Cap index rose 0.33% while the S&P BSE Small-Cap index fell 0.63%.

The broader market experienced profit booking as investor attention shifted towards the latest IPOs. Within the sectors, IT and pharma shares recorded gains, while shares of PSU banks and metal companies witnessed a decline.

The market breadth was negative. On the BSE, 1,583 shares rose and 2,123 shares fell. A total of 124 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3% to 11.87.

Numbers to track:

The yield on India`s 10-year benchmark federal paper shed 0.22% to 7.253 as compared with previous close 7.269.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.26, compared with its close of 83.28 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement advanced 0.04% to Rs 61,248.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.20% to 103.77.

The United States 10-year bond yield lost 0.56% to 4.393.

In the commodities market, Brent crude for January 2024 settlement shed 55 cents or 0.67% to $81.90 a barrel.

Global Markets:

Most shares in Europe and Asia advanced on Wednesday. Minutes from the U.S. Federal Reserve�s recent meeting revealed that policy officials maintained that monetary policy had to be restrictive and had little appetite for rate cuts.

US stocks dipped on Tuesday while minutes from the Federal Reserve�s most recent meeting showed the central bank is "in a position to proceed carefully". The Fed`s minutes from its October 31-November 1 meeting showed the policy makers wrestling with conflicting signals and agreeing to continue with caution after voting to leave the Fed funds target rate at 5.25-5.50%.

Stocks in Spotlight:

Honasa Consumer dropped 4.05%. The company after trading hours announced Q2FY24 results. The company delivered Rs 496 crore revenue from operations with 21% YoY growth. EBITDA was at Rs 40 crore (+53% YoY growth) and PAT was at Rs 29 crore (+94% YoY growth).

CG Power and Industrial Solutions hit an upper circuit of 20% at Rs 396.30 after the firm filed an application to Ministry of Electronics and Information Technology (MeitY) to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility.

Tube Investments of India spurted 17% after #CGPOWER files application for semiconductor unit. The company holds 58.04% in CG Power and Industrial Solutions.

UGRO Capital rose 3.73% following the company`s response to the RBI`s new regulations on consumer credit and bank credit to NBFCs. The RBI introduced stricter oversight on unsecured personal loans, increasing risk weights for consumer credit exposure by 25% to 125%, excluding specific loan types. UGRO Capital clarified its debt equity ratio as 2.8x and capital adequacy as 24.8%, highlighting its focus on MSMEs with secured and unsecured loans. The company believes the new regulations will not significantly impact its portfolio due to its customer base, PSL loan book, and co-lending partnerships with banks. UGRO anticipates no immediate or foreseeable impact on its growth and profitability from the increased risk weights for bank lending to NBFCs.

Tata Consultancy Services (TCS) added 0.56%. The United States Supreme Court on 20 November 2023 rejected the company�s petition to file an appeal against the orders passed by the US Court of Appeals, 7th Circuit, which confirmed the punitive damages award of $140 million passed by the District Court of Wisconsin. The company intends to make the balance provision of approximately $125 million in its financial statements as an exceptional item, for the third quarter and nine months ending 31 December 2023.

Wipro shed 0.06%. The IT major announced a collaboration with NVIDIA to help healthcare companies accelerate adoption of generative artificial intelligence (gen AI) through AI-driven strategies, products, and services.

Maruti Suzuki India fell 0.42%. The company`s board will meet on 24th November 2023, to consider allotment of 1,23,22,514 equity shares to Suzuki Motor Corporation (SMC) on a preferential basis.

Titan Company gained 0.94%. The Competition Commission of India (CCI) has approved acquisition of additional shareholding in CaratLane Trading Private (CaratLane) by Titan Company. The proposed combination relates to the acquisition by Titan of 27.18% share capital of CaratLane held by the Founder of CaratLane Trading Private Limited and his family members.

Adani Enterprises declined 1.04%. The company said that its wholly owned subsidiary Adani Defence Systems and Technologies has signed shareholders agreement and share subscription agreement with Elbit Systems, Israel. Accordingly, Elbit Systems (ESL) will acquire 44% stake in Atharva Advanced Systems and Technologies (AASTL), which is a wholly owned subsidiary of Adani Defence. As per the Agreements, AASTL will issue 7,857 equity shares at a price of Rs10 each to ESL.

Bharat Petroleum Corporation (BPCL) rallied 3.58% after the company announced that its board will consider interim dividend on Wednesday, 29 November 2023.

Texmaco Rail & Engineering advanced 3.63% after the company announced that its board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 135.90 per share. Meanwhile, the company informed that meeting of the committee is scheduled to be held on Friday, 24 November 2023 to consider and approve the issue price, including a discount if any thereto.

IPO Updates:

The initial public offer (IPO) of Tata Technologies received bids for 29,43,78,780 shares as against 4,50,29,207 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 6.54 times.

The issue opened for bidding on Wednesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 475-500 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

The IPO of Flair Writing Industries received bids for 3,13,20,310 shares as against 1,44,13,188 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 2.17 times.

The issue opened for bidding on Wednesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 288-304 per share. An investor can bid for a minimum of 49 equity shares and in multiples thereof.

The IPO of Gandhar Oil Refinery (India) received bids for 11,72,85,168 shares as against 2,12,43,940 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 5.52 times.

The issue opened for bidding on Wednesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 160-169 per share. An investor can bid for a minimum of 88 equity shares and in multiples thereof.

The IPO of Fedbank Financial Services received bids for 2,14,48,471 shares as against 5,59,23,660 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 38%.

The issue opened for bidding on Wednesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 133-140 per share. An investor can bid for a minimum of 107 equity shares and in multiples thereof.

The IPO of Indian Renewable Energy Development Agency (IREDA) received bids for 2,14,52,83,140 shares as against 47,09,21,451 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 4.56 times.

The issue opened for bidding on Tuesday (21 November 2023) and it will close on Thursday (23 November 2023). The price band of the IPO is fixed at Rs 30-32 per share. An investor can bid for a minimum of 460 equity shares and in multiples thereof.

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