SENSEX JUMPS 230 PTS, NIFTY CLOSES ABOVE 21,440; NSE VIX CLIMBS OVER 7%

The domestic equity benchmarks closed with notable increases on Tuesday, marking the third consecutive day of positive momentum. The Nifty 50 concluded the day above the 21,400 level. Nearly all sectoral indices finished in the green, especially energy, metal, and healthcare, while the IT and PSU bank index diverged from this trend. Anticipation of robust US Fed rate cuts in 2024 has sparked a global market rally, propelling Indian equities to new heights despite their premium valuations.

The barometer index, the S&P BSE Sensex, was up 229.84 points or 0.32% to 71,336.80. The Nifty 50 index added 91.95 points or 0.43% to 21,441.35.

Adani Enterprises (up 2.19%), HDFC Bank (up 0.74%) and Reliance Industries (up 0.50%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.72% and the S&P BSE Small-Cap index rose 0.48%.

The market breadth was positive. On the BSE, 2,292 shares rose, and 1,599 shares fell. A total of 139 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 7.07% to 14.68.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.06% to 7.184 as compared with previous close 7.188.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.19, compared with its close of 83.16 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.31% to Rs 63,150.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 101.69.

The United States 10-year bond yield declined 0.49% to 3.893.

In the commodities market, Brent crude for February 2024 settlement added 3 cents or 0.04% to $79.10 a barrel.

Global Markets:

Shares in Europe and Asia saw mixed trend on Tuesday amid thin trading volumes. Several markets including Australia, New Zealand and Hong Kong were shut on account of public holiday.

US stocks gyrated to a mixed close on Friday as investors headed into the Christmas holiday weekend, having digested cooler-than-expected inflation data which firmed bets for Federal Reserve interest rate cuts in the New Year.

Stocks in Spotlight:

Infosys dropped 1.12% after the IT major said that a global client has decided to terminate the Memorandum of Understanding (MoU) signed in September. The 15-year, $1.5 billion deal was contingent on a master agreement, which will no longer be pursued.

Adani Green Energy jumped 4.30% after its board approved the preferential issuance of warrants worth Rs 9,350 crore to the promoters of the company at price of Rs 1,480.75 per share. The funds shall be utilized for deleveraging and accelerated capital expenditure.

Meanwhile, the firm had informed that it has executed power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) to supply 1,799 MW of solar power.

Godrej Properties rose 0.63%. The real estate developer said that it has sold over 600 homes valued at Rs 2,600 crore during the launch of its project, Godrej Aristocrat, in Gurugram. This represents the highest sales value achieved during a launch for the Mumbai-based real estate developer.

UPL rose 0.74%. The pesticides maker on Friday announced that its board has approved the proposal for raising up to Rs 4,200 crore through rights issue of equity shares.

Zydus Lifesciences shed 0.56%. The drug maker�s API site situated at Changodar in Ahmedabad was inspected by the US drug regulator from 14 December 2023 to 22 December 2023. The PAI-cum-GMP (pre- approval inspection-cum-good manufacturing practices) inspection was closed with six observations.

Anupam Rasayan India declined 1.09%. The company announced that it has signed letter of intent (LOI) with a Japanese chemical company worth $61 million (Rs 507 crore) for next 9 years to supply new age polymer intermediate.

JSW Energy added 1.43% after the company�s wholly owned subsidiary, JSW Renew Energy has commissioned first phase of 51 megawatt (MW) of wind power project awarded under SECI tranche IX in Tamil Nadu. It has started phase-wise commissioning of the 810 MW (inter-state transmission system) ISTS-connected Wind Power Project awarded under SECI tranche IX in Tamil Nadu. The project has a power purchase agreement with SECI for a period of 25 years.

Asian Granito India rallied 8.40% after the company has taken a strategic leap into sanitaryware production. The company has commenced commercial operations at its wholly-owned subsidiary, AGL Sanitaryware at Morbi, Gujarat. The firm expects turnover of around Rs 400 crore from sanitaryware & bathware division in five years.

New Listing:

Shares of Muthoot Microfin closed at Rs 266.20 on the BSE, representing a discount of 8.52% as compared with the issue price of Rs 291.

The scrip was listed at Rs 278, exhibiting a discount of 4.47% to the issue price.

The stock has hit a high of 280.80 and a low of 265.30. On the BSE, over 7 lakh shares of the company were traded in the counter.

Shares of Suraj Estate Developers closed at Rs 334.30 on the BSE, representing a discount of 7.14% as compared with the issue price of Rs 360.

The scrip was listed at Rs 343.80, exhibiting a discount of 4.5% to the issue price.

The stock has hit a high of 354.35 and a low of 323.95. On the BSE, over 3.65 lakh shares of the company were traded in the counter.

Shares of Motisons Jewellers closed at Rs 101.18 on the BSE, representing a premium of 83.96% as compared with the issue price of Rs 55.

The scrip was listed at Rs 103.90, exhibiting a premium of 88.91% to the issue price.

The stock has hit a high of 109.09 and a low of 99.01. On the BSE, over 37.63 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Innova Captab received bids for 50,16,58,509 shares as against 90,78,010 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (26 December 2023). The issue was subscribed 55.26 times.

The issue opened for bidding on Thursday (21 December 2023) and it will close on Tuesday (26 December 2023). The price band of the IPO is fixed at Rs 426-448 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

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