KEY HIGHLIGHTS
US Futures Trade Lower
December Futures contract of Dow Jones was trading 7 points lower at 42,548.00 as of 3:52 p.m and the S&P 500 December Futures was trading 0.07% or 4.25 points down at 5,800.25.The Nasdaq 100 December Futures fell 0.18% at 20,309. These levels imply the US equity markets are likely to see a muted start on Friday.
Economic Data Releases & Events Later Friday
UK: Confederation of British Industry Realised Sales Data
Germany: Deutsche Bundesbank President Joachim Nagel Speaks
US: PCE Price Index
US: Goods trade balance
US: Personal income
US: Personal spending
US: Preliminary wholesale investories
US: Federal Reserve Governer Michelle Bowman speaks
Nifty Snaps Six-Session Rally But Closes Week Higher: Closing Bell
The Nifty snapped its six-session winning streak on Friday and Sensex ended lower after two consecutive days of gains. Despite this, the Indian benchmarks managed to end higher for a third week in a row.
Both the indices had hit their record highs earlier in the day as IT stocks led the gains after Accenture results. Globally, the markets tracked developments on China's economy boost, US GDP number, and the outcome of Japan's election.
Intraday, both the Nifty and Sensex gained around 0.2% to hit fresh highs of 26277.35 points and 85978.25 points respectively. At close, Nifty was at 26178.95, down 0.14% or 37.10 point and Sensex was 0.31 % or 264.27 points down at 85571.85.
According to Amol Athawale, VP-technical research at Kotak Securities, "For the traders now, 26100/85300 and 26000/85000 would act as a key support zones while 26400-26500/85900-86300 would act as a crucial resistance areas for the bulls."
However, he noted below 26000/85000 the sentiment could change. "Below the same, traders may prefer to exit out from the trading long positions," he said.
For Bank Nifty, Athawale said that the medium term texture is bullish but due to temporary overbought conditions, we could see range bound activity in the near future. "For traders now, 53500 and 53100 would be the key support zones while 54500-54800 could be the profit booking areas for the bulls," he said. "However, below 53100 uptrend would be vulnerable."
Shares of HDFC Bank Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., Larsen & Toubro Ltd., and Power Grid Corp. Of India Ltd. dragged the Nifty lower.
While those of Reliance Industries Ltd., Sun Pharmaceutical Industries Ltd., Bharat Petroleum Corp. Ltd., Infosys Ltd., and Cipla Ltd limited the fall.
Market breadth was split between buyers and sellers. Around 1,995 stocks rose, 1,947 stocks declined, and 118 stocks remained unchanged on BSE.
Broader markets outperformed benchmark indices. The BSE Midcap and BSE Smallcap indices ended 0.29% and 0.07% higher, respectively.
On BSE, 12 sectors advanced, and eight declined out of 20. The BSE Realty declined the most, and the BSE Oil & Gas rose the most
Weekly Performance
This week, the Nifty gained 1.50% and Sensex added 1.2%. All sectoral indices but Nifty FMCG ended higher. Nifty Metal rose the most.
Rupee weakens Against US Dollar
Rupee weakened by 6 paise to close at 83.70 against the US dollar after it closed at 83.64 on Thursday.
Source: Bloomberg
Markets At Close
The Nifty snapped its six-session winning streak after hitting its highest level of 26277.35 points
Sensex ended lower after gaining in two sessions and recording a new high of 85978.25
Nifty ends at 26175.15, down 0.16% or 40.90 points
Sensex ends 0.31 % or 264.27 points down at 85571.85
However, both the indices ended with weekly gains
Broader indices were lower at close; Nifty Midcap 100 ended 0.15% lower while Nifty Smallcap 250 closed 0.19% down.
Most sectoral indices ended higher, Nifty Oil & Gas rose the most
BPCL and Cipla were top Nifty gainers
Powergrid and Airtel fell the most
BPCL Jumps Nearly 7% To Be Top Nifty Gainer
Shares of Bharat Petroleum Corp. Ltd jumped the most among Nifty stocks to hit its lifetime high of Rs 370.50.
Zee Media Locked In Upper Circuit On Fund Raise
The company has approved the issue of upto 13.33 crore warrants, fully convertible or exchangeable for, one fully paid-up equity share of the company at an issue price of Rs. 15/- (Rupees Fifteen Only) per Warrant, aggregating to an amount not exceeding Rs. 200 crore, an exchange filing said.
RITES Gets New Order
RITES has got new order of Rs 100 crore from Adani Ports for railway operation & maintenance services, according to an exchange filing. Time period by which the order) is to be executed 5 Years from the effective date i.e. November 1, 2024.
Is $10 Billion Valuation For Swiggy Cheap Or Expensive?
Swiggy Ltd, a major player in food delivery and quick commerce, has submitted an updated draft red herring prospectus to the market regulator Securities and Exchange Board of India for review and public comment. The company seeks a valuation of approximately Rs 83,365 crore, or nearly $10 billion.
Find out if it is cheap or expensive here.
Alembic Pharma Drug To Treat Schizophrenia Gets Nod
Alembic Pharma has received US FDA Final Approval For Paliperidone Tablets, which are used for treatment of Schizophreniay, according to an exchange filing.
Nifty, Sensex Fall From Record Highs As HDFC Bank, Airtel Drag: Midday Market Update
The NSE Nifty 50 and BSE Sensex declined after touching fresh highs as shares of HDFC Bank Ltd., Bharti Airtel Ltd. fell. As of 11:57 a.m., the Nifty 50 was trading 8.10 points, or 0.03% lower at 26,207.95, and Sensex declined 116.05 points, or 0.14% at 85,720.06.
Shortly after opening, the Nifty rose 0.23% to a new high of 26,277.35. The Sensex rose 0.17% to a fresh high of 85,978.25.
For Nifty, 26,000 is the good support to lookout for, said Soni Patnaik, assistant vice president, JM Financial Services Ltd. However, investors should not ignore the fact that the indices are quite overbought at the current levels, not only from technical point of view. It's multiple parameters from derivatives segment as well indicate the indices at overbought zone. It's wise to be cautious, and book profits from the indices, Patnaik said.
Also Read: Prataap Snacks Shares Erase Gains After Rising On Mahi Madhusudan Kela, Authum Investment Open Offer
Shares of Infosys Ltd., Sun Pharmaceutical Industries Ltd., Titan Co., HCL Technologies Ltd., and Bharat Petroleum Corp. positively contributed to gains in the Nifty.
While those of HDFC Bank Ltd., Bharti Airtel Ltd., Larsen & Toubro Ltd., Power Grid Corp. of India, and ICICI Bank Ltd. limited gains.
Out of 12 sectoral indices compiled by the National Stock exchanges, eight advanced and four declined. The NSE Nifty IT emerged as the lead sector with nearly 3% gain. The NSE Nifty Realty declined the most among sectoral indices.
Earlier in the day, the NSE Nifty Auto rose 0.53% to a record high of 27,641.60. Maruti Suzuki India Ltd. led the gains.
The NSE Nifty Metal rose 1.82% to a record high of 10,167.40 as Hindalco Industries Ltd. rose.
Broader markets outperformed benchmark indices. The BSE Midcap and Smallcap indices rose 0.22% and 0.36% higher, respectively.
On BSE, 14 sectors advanced, and six declined out of 20. The BSE Metal was the best performing sector, and the BSE Realty declined the most.
Market breadth was skewed in the favour of buyers. Around 2,156 stocks rose, 1,584 stocks declined, and 151 stocks remained unchanged on BSE.
Ola Electric Cheapest Scooter Gets Auto PLI Certification
Ola Electric’s cheapest scooter Ola S1 X 2 kWh has got Auto PLI certification after achieving 50% localisation from ARAI. PLI incentives are at 13-18% of determined sales value of product. The company now has five scooters that have received PLI certification.
Source: Company statement
Japanese Yen Surges On LDP Leadership Result
The Japanese Yen reversed its earlier weakness against the US Dollar and strengthened after former defense minister Shigeru Ishiba won the Liberal Democratic Party leadership election on Friday and would likely become Japan's next prime minister.
The currency had declined 1.16% to 146.49 against the US dollar earlier in the day, but as of 12:21 p.m, it traded 1.04% higher at 143.31 a dollar.
SC Issues Notice On Adani Enterprises Led Consortium
Supreme Court has issued notice on Adani Enterprises-led consortium's plea that seeks to invoke arbitration against non-allocation of a coal block in Chhattisgarh. The consortium seeks to claim about Rs 100 crores in costs. In July, the Gujarat HC had rejected the consortium's plea to invoke arbitration.
Source: Supreme Court Proceedings
Swiggy Vs Zomato
Swiggy on Thursday submitted an updated draft red herring prospectus to markets regulator Securities and Exchange Board of India for review and public comments, after receiving a nod for its listing via the confidential filing route.
With the updated DRHP, Swiggy's FY24 metrics are up for scrutiny against Zomato's. Read more here.
After Torrent Pharma, Alkem Labs Denies Claims on Drug Failing Quality Test
After Torrent Pharma Ltd. refuted claims of its Vitamin D supplements failing Central Drugs Standard Control Organisation's quality test, Alkem Laboratories Ltd. has also disputed claims about its subsidiary's Amoxicillin and Potassium Clavulanate tablets failing quality checks, citing that samples tested are spurious and are not manufactured by the company.
Read more here.
SJVN Surges As It Signs Two MoUs With Maharashtra Govt
SJVN has signed two MoUs with the Maharashtra government for development of pumped storage projects and floating solar projects in the state, according to an exchange filing which added that the projects are worth Rs 48,000 crore.
GMR Airports Gets Green Light To Upgrade & Operate Nagpur’s Babasaheb Ambedkar International Airport
Supreme Court has disposed of the plea on government's submission, which said that the threshold has not been met to press the curative plea against a top court order that paved way for GMR to upgrade and operate the airport.
Source: Supreme Court Proceedings
Asian Market Update: CSI 300 Logs Over 15% Weekly Gain; Nikkei 225 Jumps Over 4% Tracking Weak Yen
CSI 300, mainland China's stock gauge has gained over 15% this week to be on the path of recording the best week since 2008. Following the measures by the People's Bank of China to stimulate the struggling economy, China's top leaders pledge to arrest decline of the real estate market further propelled the bulls.
Hang Seng trailed CSI 300 with nearly 14% weekly gain so far in Friday. The index jumped over 4% as WUXI Apptech Co Ltd. and New World Developement rose.
In Japan, Nikkei 225 jumped nearly 5% on Friday tracking the weak yen as it improved the sentiment for the export-oriented country.
The Japanese yen weakened after probability of Sanae Takaichi winning to be the next premier of Japan rose. Takaichi is considered to be against rate hikes which fed to investors' hope of dovish stance from the Bank of Japan, Bloomberg reported.
Japan's former Prime Minister Fumio Kishida stepped down in August after Liberal Democratic Party's rating declined following alleged corruptions.
CLSA On Zomato After Swiggy DRHP
CLSA said that both Swiggy and Zomato show strong growth and QSRs are losing market share to aggregators.
Swiggy has 14.03 million monthly transacting users (+11.7% YoY) while Zomato has 20.3 million MTUs (+16.0% YoY), according to CLSA and Swiggy's gross order value growth is 14.3% YoY in 1QFY25, compared to Zomato's 26.6%.
Zomato outpaces Swiggy significantly in revenue growth, CLSA said while noting that the former leads in contribution and EBITDA margins, though Swiggy is narrowing the gap. Despite Zomato's lead, Swiggy remains competitive, with a positive outlook for both companies.
Reliance Power Shares Hit Upper Circuit After Major Block Deals
Share price of Reliance Power Ltd. hit the upper circuit limit with a nearly 5% increase on Friday, after three substantial block deals. One was executed before the market opened and the others at the start of trading, with shares being transacted at a price of Rs 43.75 per share, totaling Rs 67.85 crore for approximately 1.55 crore shares.
Bondada Engineering Locked In Upper Circuit On Order From KPI Green
Bondada Engineering has recieved Rs 468 crore work order from KPI Green Energy. The order is for supply of material for solar power generation plant for 130 MWp/ 100MWac and supply of material for work contract for installation of Solar Power generation Plant 130 MWp/100MWac, an exchange filing said.
Hindalco Industries Share Price Hits Life High Following Large Trade On NSE
Hindalco Industries Ltd.'s share price rose to life high on Friday after its shares changed hands in large trades during pre-market and market hours. After market open, Hindalco Industries' 1.39 lakh shares were traded in a bulk at Rs 751.05 apiece.
Morgan Stanley Double Upgrades Tata Power, Torrent Power; Upgrades BHEL To 'Overweight'
Tata Power, Torrent Power, BHEL targets at Rs 577/2268/352, implies 23%/20%/25% upside. It has maintains overweight on NTPC at Rs 496 target, implying 14% upside but has downgraded Suzlon, Power Grid, ReNew to 'equalweight'. Suzlon, Power Grid targets at Rs 88/362 implies 6% upside/1% downside
PC Jeweller Hits Multi-Year High After BoI Nods For One-Time Settlement
PC Jeweller Ltd.'s share price rose to over six-year high on Friday after it informed the exchanges the Bank of India nodded for its proposal of a one-time settlement.
RailTel Corp Shares Surge Following Rs 156-Crore Order From Maharashtra Government
RailTel Corp. of India's share price rose on Friday, after the company secured a significant work order worth Rs 156 crore from the Maharashtra government's Rural Development Department.
This project focuses on the operationalisation of ASSK-GP initiatives in the Konkan, Pune, and Nashik regions, according to an exchange filing.
NSE Rejig: Trent, BEL And Others Could Bring In $1.2 Billion Inflows Into Nifty50
The Nifty50 may attract inflows worth over $1 billion, and the banking stocks may bring around $146 million due to the NSE rejig that will take place on Friday, according to Nuvama Alternative & Quantitative Research.
Read more here.
Nifty At New Record High
The Nifty continued its record run and hit a new record high of 26266.40 points on the back of gains in IT stocks and Sun Pharma.
Prataap Snacks Gains As Mahi Madhusudan Kela, Authum Investment To Buy Stake
Shares of Prataap Snacks up nearly 12% after Alpana Sanjay Dangi's Authum Investment & Infrastructure Ltd. and Mahi Madhusudan Kela bought stake in the company.
Nifty IT Adds Around 3% With All Constituents Up
All constituents of the index were trading higher as of 9:36 a.m., shares of Infosys, TCS, and Tech Mahindra contributed the most to the gains. The sector contributed over 96 points, the most to the gains in the Nifty 50.
Nifty, Sensex Open Higher As IT Stocks Lead After Accenture Q4 Result: Opening Bell
Benchmark equity indices opened higher Friday led by gains in IT stocks as investors assessed fourth quarter result of Accenture. The sentiment was also buoyed by US GDP number and a prospect of more stimulus by China.
The Sensex hit a new record high of 85,955.50 and Nifty came very close to its record high of 26250.9.
However, soon after opening they erased gains and traded flat as HDFC Bank and L&T weighed. At pre-open, Nifty 50 was at 26248.25, up 0.12% or 32.20 points and Sensex was at 85893.84, up 0.07% or 57.72 points.
According to Shrikant Chouhan, head equity research at Kotak Securities, the market managed to hold above 26100 levels which is positive and based on this we can see 26500 levels in the near future.
"However, on an immediate basis, 26300 would be the major resistance. On the other hand, 26100 and 26000 can be the biggest support zone," he said adding that the strategy should be to buy between 26100 and 26000 and place a stop loss at 25800 on a closing basis.
Shares of Infosys, TCS, Sun Pharma, HCL Tech, and Tech Mahindra contributed the most to the gains. While those of HDFC Bank, L&T, Bharti Airtel, Powergrid, and ICICI Bank weighed.
Most sectoral indices were lower at close but Nifty IT gained nearly 3%.
Nifty, Sensex Higher At Pre-Open
At pre-open, Nifty 50 was at 26248.25, up 0.12% or 32.20 points and Sensex was at 85893.84, up 0.07% or 57.72 points. According to Vikas Jain, head of research at Reliance Securities, the rally is expected to persist, especially with the Nifty sustaining above the crucial psychological level of 26,000, combined with record-high global markets and strong FII inflows.
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.72% after it closed at 6.72% on Thursday, according to Bloomberg.
Rupee Opens Flat Against The US Dollar
The Indian rupee opened flat at 83.65 against the US dollar after it closed at 83.64 on Thursday, according to Bloomberg.
On Thursday, the Indian rupee closed weaker against the US dollar on Thursday, amid stabilising crude prices and month-end dollar demand. The rupee depreciated by 4 paise to close at 83.64 against the US dollar.
Goldman Sachs, Nomura, Emkay on IT Cos After Accenture Q4 Result
Goldman Sachs said that Accenture result and guidance show improving trend at moderate pace and commentary suggests limited expectations of any meaningful improvement in discretionary demand. Its channel checks suggest demand environment improving. Goldman noted that 'buy' rated TCS trades at lower premium to the sector vs history and it remains a defensive play. Buy-rated Infosys is a beneficiary of discretionary demand revival over next 12 months, it said adding that it has a 'sell' on Tech Mahindra and Wipro and 'Neutral' on HCL Technologies
According to Nomura, FY25 revenue guidance includes over 3% inorganic growth and margin guidance implies 10-30 basis points YoY expansion. It said it expects a recovery in discretionary demand and that large caps are likely to outperform small caps. It noted, interest rate cut cycle, potential thaw in decision-making by US corporates post US elections in Nov 2024 could provide a fillip to demand. The brokerage has a 'buy' rating on Infosys, Wipro and Cognizant Technology in large-caps; and Eclerx in mid-caps while it has a 'reduce' rating on LTI Mindtree, Mphasis Ltd, and L&T Technology Services.
Emkay Global said that demand environment has not seen much change, and remains cautious and clients are continuing to limit discretionary spending. Accenture's guidance points to a stable demand environment and conservative approach, it said.
It believes that uptick in technology spending in CY25 hinges on confidence on macro stability, resilience of US economy after the start of the interest rate-cut cycle.
Edward Yardeni Expects A Correction In Market
Edward Yardeni, president of Yardeni Research told NDTV Profit that markets could see a correction due to high valuations. He said he sees that happening early in 2025 rather than a complete bear market, while noting that valuations in the US and India are stretched.
On China's stimulus, he said that while Europe could get a lift from China improvement, commodity markets not voting positively to China's stimulus plans. "China may trying to lift their economy, but structural problems in property markets remain," he said
Yardeni prefers India over China and believes India is where China was in the 2000s.
He expects gold prices to move higher as people fear about unstable geopolitical scenarios.
Emkay Upgrades Marico To 'Add'
Emkay has upgraded Marico to 'add' from 'reduce' with a higher target of Rs 775 from 700 earlier, implying upside of 12%. It said that improving demand is setting and thrust on enhancing distribution is positive. Moreover, healthy growth in premium personal care, digital brands, foods is positive. The brokerage continues to see steady expansion in FY25 quarterly volume growth trajectory and said inflation in copra is likely to help drive double-digit growth in Parachute in 2HFY25.
Emkay expects price hikes with custom edible oil duty pass-through in H2 to induce double-digit growth and has ifted valuation multiple to 50 times from 47 times.
Here's Why Oil Prices Are Falling
At 8:04 a.m., both Brent Crude and WTI Crude were down 0.5% at $71.25 a barrel and $67.33 a barrel respectively. Citi Research said that oil prices are falling on higher likelihood of Libya production returning to market. It added Chinese announcements on new economic stimulus to have limited upside impact on demand
Citi expects brent prices to avg at $74 in Q4 2024 and said that the downtrend in oil prices is a deflationary tailwind. It said that falling oil prices will further lower annual spend on oil.
According to Bloomberg, Oil fell further as Saudi Arabia was reportedly committed to increasing output in December, while Libya named its new central bank governor, opening the way to reviving some crude production.
IPO Offering
Public issue of KRN Heat Exchanger and Refrigeration will open for subscription on a third day after it was subscribed to 58.07 times on day 2. That of Diffusion Engineers for a second day after it was subscribed to 7.16 times on day 1.
Ola Electric Arm Gets PLI Scheme Certification
Ola Electric's arm Ola Electric Technologies has got certification for compliance with eligibilty assessment requirements as per PLI scheme for automobile & auto components for Ola S1 X 2kWh scooter, according to an exchange filing.
Stocks To Watch
Shares of Trent and Bharat Electronics will be in focus as they prepare to enter the benchmark Nifty 50 index following their inclusion which was announced in August while Divi's Laboratories and LTIMindtree are set to be removed from Nifty 50.
Shares of Punjab National Bank will trade after the lender closed its QIP with an issue price at Rs 103.75 per share, a discount of 5% to the floor price. KEC International's stock will react to the news of raising Rs 870 crore via QIP and issued 91.1 lakh shares at Rs 955 per share.
Torrent Pharma refuted claims of Shelcal 500 allegedly failing CDSCO quality test, saying the sample seized by the regulator is not manufactured by the company and is non-genuine and spurious.
Lemon Tree's stock is likely to rise as it signed pact for 74-room property in Gujarat and Railtel Corp is also expected to gain on receiving Rs 156 crore work order from Maharashtra government for project in Konkan, Pune and Nashik regions.
Click here for more.
China Indices Gain The Most Among Asian Markets
Hong Kong's Hang Seng gained nearly 2.6% as of 7:14 am and China's CSI 300 was trading 2% higher, outperforming the gains in the other Asian markets.
The positive sentiment is on the back of new stimulus pledges by the Chinese government after it unveiled interest rate cuts, liquidity for banks and incentives for homebuyers. Investors in the country now await more macro data with its industrial profit data to be released later in the day.
Asian equities also tracked the Wall Street which ended higher as resilient US jobs data affirmed the Fed's soft landing target.
At 7:14 a.m., Nikkei traded 0.90% higher, S&P ASX 200 was up 0.1%, and South Korea's Kospi was the only index that fell.
GIFT Nifty Trades Below 26,400
The GIFT Nifty was trading at 26,358.00, down by 18.5 points, or 0.06% as of 06:57 a.m. On Friday, shares of Trent Ltd., Bharat Electronics Ltd., IndiGo and Lemon Tree Ltd. will remain in focus among others.
In Thursday's session, the NSE Nifty 50 and BSE Sensex extended their record run to the sixth session intraday on Thursday, led by gains in Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. The benchmarks have been touching fresh highs since Sept. 19.
The Nifty 50 ended 211.90 points, or 0.81% higher at 26,216.05, and the S&P BSE Sensex ended up 666.25 points, or 0.78% at 85,836.12. Nifty settled at its highest closing level for the fifth straight session.
Overseas investors turned net buyers of Indian equities on Thursday, after staying sellers for two sessions. Foreign portfolio investors mopped up stocks worth Rs 629.9 crore. While, domestic institutional investors stayed net buyers for the fourth session and purchased equities worth Rs 2,405.1 crore, the NSE data showed.
The rupee depreciated by 4 paise to close at 83.64 against the US dollar.
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