Sensex rises 234 pts, broader mkt underperforms, media shares advance

The key equity barometers traded with decent gains in early afternoon trade. The Nifty managed to hold above the 20,950 mark. Media shares extended gains for the third consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 233.77 points or 0.34% to 69,755.46. The Nifty 50 index added 53.75 points or 0.26% to 20,954.90.

The broader market underperformed. The S&P BSE Mid-Cap index lost 0.06% while the S&P BSE Small-Cap index shed 0.04%.

The market breadth was positive. On the BSE, 1,914 shares rose and 1,718 shares fell. A total of 147 shares were unchanged.

RBI MPC Meet Outcome:

The Reserve Bank of India�s (RBI) Monetary Policy Committee (MPC) today, 8 December 2023, announced its decision to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%. The standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

All members of the MPC unanimously voted to keep the policy repo rate unchanged. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The real GDP growth for 2023-24 is projected at 7% with Q3 at 6.5%; and Q4 at 6%. Real GDP growth for Q1:2024-25 is projected at 6.7%; Q2 at 6.5%; and Q3 at 6.4%. The risks are evenly balanced.

CPI inflation is projected at 5.4% for 2023-24, with Q3 at 5.6%; and Q4 at 5.2%. Assuming a normal monsoon next year, CPI inflation for Q1:2024-25 is projected at 5.2%; Q2 at 4%; and Q3 at 4.7%. The risks are evenly balanced.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.38% to 12.50. The Nifty 28 December 2023 futures were trading at 21,038, at a premium of 127.55 points as compared with the spot at 20,910.45.

The Nifty option chain for the 28 December 2023 expiry showed maximum Call OI of 35.3 lakh contracts at the 21,000 strike price. Maximum Put OI of 40.8 lakh contracts were seen at 20,000 strike price.

Buzzing Index:

The Nifty Media index added 1.01% to 2,419.30. The index rallied 4.11% in three trading sessions.

Nazara Technologies (up 3.62%), Zee Entertainment Enterprises (up 2.93%), Saregama India (up 1.59%), Dish TV India (up 1.04%) and PVR Inox (up 0.32%) edged higher.

On the other hand, Network 18 Media & Investments (down 3.47%), TV18 Broadcast (down 1.91%) and D B Corp (down 0.66%) declined.

Stocks in Spotlight:

Titagarh Rail Systems advanced 2.12% after its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 976.10 per share.

Knowledge Marine & Engineering Works dropped 4.31%. The company announced that it has received an order from Visakhapatnam Port Authority aggregating to Rs 3.45 crore. The said order includes supply, manning, operation, and maintenance of 1 No Pilot Launch with a Steel hull on hire basis. The contract is for a period of three years and is set to commence from 24 March 2024.

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