Stock Market Today: Sensex, Nifty Log Best Stretch Of Weekly Gains In  Nearly Three Years; Nifty Bank Hits Fresh High

The yield on the 10-year bond closed 3 bps higher at 7.27% on Friday.

Source: Bloomberg

Indian benchmark indices rose for six straight weeks, logging best weekly gains in nearly three years.

The NSE Nifty 50 index ended at record high after hitting 21,000 mark for the first time on Friday. Similarly, the BSE Sensex also touched a fresh-high and ended at record high level.

The NSE Nifty 50 ended 68.25 points, or 0.33% higher, at 20,969.40, while the S&P BSE Sensex closed 303.91 points, or 0.44% higher at 69,825.60.

The Nifty Bank index also touched a fresh high during the last leg of the trade and ended 0.90% higher at 47,262.00.

The Reserve Bank of India's Monetary Policy Committee kept the repo rate unchanged at 6.50% in line with market expectation, today. The rate-setting panel also kept its stance of withdrawal accommodation unchanged to ensure inflation comes down to the central bank's medium term target of 4.00%. 

"Nifty opened on a positive note once again with a new record high and thereafter consolidated finding resistance near 20950 zone for rest part of the session halting the ongoing rally as of now. The near-term support would be 20500 and once a decisive breach above 21000 is establish then further targets till 21800-21900 levels can be anticipated. The support for the day is seen at 20800 while the resistance is seen at 21100," said Vaishali Parekh, vice president - technical Research, Prabhudas Lilladher

"The Indian equities benchmark indices posted strong gains in an eventful week. The Nifty Index and the Sensex Index gained 3% this week and outperformed most global equity markets. The BSE Midcap and the Smallcap index also  posted gains but underperformed the Nifty and the Sensex Index. BSE Power and the BSE Oil & Gas index posted strong returns this week, followed by BSE Energy, BSE Capital Goods and BSE Bankex Index. Domestic market rally was fueled by the strong macro-economic data (GDP, GST collection, PMI) and the outcome of the state election results," said Shrikant Chouhan head equity research, Kotak Securities Ltd.

"The RBI MPC, as expected, voted unanimously to hold the repo rate at 6.5%. The RBI MPC revised India’s FY24 real GDP growth projection to 7% from 6.5% earlier. The markets will now look forward at the outcome of the U.S. Federal Open Market Committee meet scheduled next week," he added.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., HCL Technologies Ltd., and Axis Bank Ltd. were adding positively to the indices.

Adani Ports and Special Economic Zones Ltd., Adani Enterprises Ltd., Mahindra & Mahindra Ltd., Bajaj Finance Ltd. weighed on the indices.

Eleven out of 13 sectors advanced this week, with Nifty Energy emerging as the top sector. Nifty Pharma declined the most this week.

The broader markets underperformed, with the S&P BSE MidCap Index was 0.16% lower, whereas S&P BSE SmallCap Index was 0.44% lower. 12 out of 20 sectors compiled by BSE  advanced, while eight declined. S&P BSE TECK and Bankex rose the most.

The market breadth was skewed in the favour of sellers. Around 2002 stocks declined, 1749 advanced, and 129 remained unchanged.

• 17 lakh shares changed hands in a large trade

• 0.03% equity changed hands at Rs 209.05 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

• IDFC First Bank 23.4 lakh shares or 0.03% equity changed hands in two large trades

• Buyers and sellers not known immediately

Source: Bloomberg

Life Insurance Corporation of India Ltd. has reduced stake in HDFC Asset Management Company Ltd. to 6.95% from 9.05%

Source: Exchange Filing

Top Gainers

• GMR Airports Infrastructure up 12.16% at Rs 69.2

• Schneider Electric Infrastructure up 9.51% at Rs 373

• Alok Industries up 8.96% at Rs 22.5

• Infibeam Avenues up 8.66% at Rs 21.95

• Brightcom Group up 5.99% at Rs 21.25

Food Secretary Sanjeev Chopra said India's sugarcane production seen lower this year compared to last year. India Sugarcane output seen at 43.48 crore tonn this year.

Source: Bloomberg

Benchmark indices were off their highs through the midday after the Nifty 50 crossed the crucial 21,000 mark and Sensex hit its fresh lifetime high, due to loss in the shares of Bajaj Finance Ltd., ITC Ltd., Mahindra & Mahindra Ltd., and Adani Enterprises.

Gains in shares of HDFC Bank Ltd., Larsen & Toubro Ltd., and Infosys kept the benchmarks positive.

Both the Nifty 50 and the Sensex hit their fresh life highs of 21,006.10 points and 69,888.33, respectively.

At 12:06 p.m., the S&P BSE Sensex was 0.4%, or 262.71 points higher at 69,784.40, while the NSE Nifty 50 was up 0.3%, or 63 points at 20,964.

The Nifty 50 surpassed the 21,000 mark for the first time after Reserve Bank of India's decision to maintain the repo rate at 6.5 percent for the fifth consecutive time.

The market is likely to exhibit a range-bound behavior, with the Nifty expected to fluctuate between 20,850 and 21,000. "Key support levels for the Nifty are between 20,675-20,725, while resistance is anticipated in the 20,940-21,000 range," said Shrey Jain, founder and chief executive officer of SAS Online.

"The Bank Nifty is likely to find support in the 46,500-46,650 range, with resistance levels in the 46,925-47,000 range. A period of consolidation around current levels is likely, before the initiation of the next phase of the market rally," Jain said.

Shares of HDFC Bank Ltd., Larsen & Toubro Ltd., Infosys Ltd., HCL Technologies Ltd., and ICICI Bank Ltd., led Friday's gains when of Bajaj Finance Ltd., ITC Ltd., Axis Bank Ltd., Mahindra & Mahindra Ltd., and Adani Enterprises.

Five of the sectoral indices rose, while four fell. Nifty IT gained the most, rising 1%, followed by Nifty Media. While, Nifty Pharma, Nifty Auto, and Nifty Energy fell.

The broader markets underperformed; the BSE MidCap fell 0.1%, while the BSE SmallCap was flat.

Ten out of the 20 sectors compiled by the BSE advanced, while the other half fell.

The market breadth was in the favour of buyers. As many as 1,918 stocks advanced, 1,673 declined and 159 remained unchanged on the BSE.

• JSW Steel Ltd.'s U.S unit to raise up to $145 million via long-term bonds

• Funds to be used for construction, expansion and other works

Source: Exchange Filing

KPI Green Energy Ltd. received new orders of 1.75 MW for solar projects.

Source: Exchange Filing

The shares of Container Corporation of India Ltd touched all-time high on Friday after it signed a memorandum of understanding with NTPC Vidyut Vyapar Nigam Limited.

Concor shares rose as much as 2.18% to 860.75 apiece to reach its all time high. It pared gains to trade 0.06% lower at Rs 841.85 apiece, as of 11:42 a.m. This compares to a 0.35% advance in the NSE Nifty 50 Index.

It has risen 13.82% on a year-to-date basis. Total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 86.

Out of 26 analysts tracking the company, 13 maintain a 'buy' rating, 8 recommend a 'hold,' and 5 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.4%.

Shares of Indian Renewable Energy Development Agency Ltd. surged over 14% to an all-time high of Rs 73.70 apiece riding on the back of its listing gains.

The company made its debut in the exchanges on Nov. 29 and marked a stellar closing of a premium of 87.5% over the issue price. The shares ended at Rs 60 apiece on NSE, while the issue price was set at Rs 32 per share.

Shares of IRB Infrastructure Developers Ltd. rose to a life-time high on Friday after it announced a jump in November toll collections.

The total toll collection by IRB Infrastructure Developers and IRB Infrastructre Trust in the month of November saw a 20% jump to Rs 4,370 million, an exchange filing said. This is higher than the Rs 3,660 million collected in November last year.

The shares of IRB Infrastructure Developers Ltd. rose to a life-time high on Friday after it announced a jump of 20% in November toll collection.

IRB Infrastructure shares rose as much as 6.50% to 40.95 apiece to reach its all-time high. It pared gains to trade 3.25% higher at Rs 39.70 apiece, as of 11:00 a.m. This compares to a 0.16% advance in the NSE Nifty 50 Index.

It has risen 36.15% on a year-to-date basis. Total traded volume so far in the day stood at 3.6 times its 30-day average. The relative strength index was at 67.

Out of nine analysts tracking the company, six maintain a 'buy' rating and three recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 40.1%.

• Spicejet got favorable order from Dubai International Financial Centre on Dec 7

• DIFC Court issued freezing order on Oct 30 in relation to certain engines installed on aircraft bearing Indian registration mark

• Court further orders to pay legal costs incurred by company

Source: Exchange Filing

• Nifty Midcap 100 trading lower at 0.14% at 44432.75

• Nifty Smallcap 100 trading 0.44% lower at 14497.50

Shares of Paytm parent One97 Communications Ltd. recovered on Friday after it tumbled to hit the 20% lower circuit, the worst fall since listing. The stock had hit the lower circuit after analysts downgraded it as the company decided to bring down the level of unsecured loans under Rs 50,000 in a calibrated manner.

Systematix doesn't expect any major impact on sugar sector's profitability, and maintained a positive outlook on the sector.

Systematix forecasted additional 1.5mn ton of sugar production this year. Post government's decision to curb ethanol production from sugar cane, net production of sugar to increase 31.5 mn tonn.

Systematic said the government is required to hike ethanol prices to incentivize mills. Ethanol supplies will now be sourced from maize, damaged grains. It also see little impact on integrated sugar millers' profit.

Life Insurance Corp. reclaimed Rs. 5 lakh crore market capitalisation, which fell since its listing in 2022.

The market cap of the state-run life insurer slipped below Rs 5 lakh crore on June 6, 2022, and has been on a downtrend since.

GMR Airports Infrastructure Ltd at 16.21x of its 30 day average

Mahindra Logistics Ltd at 5.07x of its 30 day average

Schneider Electric Infrastructure Ltd at 4.74x of its 30 day average

MMTC Ltd at 4.11x of its 30 day average

Nazara Technologies Ltd at 4.09x of its 30 day average

Nifty 50 advanced 0.50% to hit record high at 21,006.10 points

Sensex rose 0.53% to scale a new high at 69,888.33 points

Source: Bloomberg

IIFL Securities' stock rose as much as 13.99% during the day to Rs 134.40 apiece on the NSE. It pared gains to trade 9.20% higher at Rs 128.75 apiece compared to a 0.4% decline in the benchmark Nifty 50 as of 10:10 a.m.

The shares have risen 101.4% on a year-to-date basis. The total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 73.72, indicating that the stock may be overbought.

An analyst tracking IIFL Securities has a 'hold' rating for the stock, according to Bloomberg data.

• National Aluminium has16.6 lakh shares changed hands in a large trade

• 0.1% equity changed hands at Rs 98.65 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

• Gujarat Gas and Indraprastha Gas are Nirmal Bangs key stock picks in gas sectors.

• Nirmal Bang maintained a 'Buy' rating on General Gas Ltd. at Rs 506 target price

• India’s October gas consumption up 30.6% on year to 198.1mmscmd

• India October LNG consumption up 51.5% on year to 94.8mmscmd

• Fertilizers, power, CGD, refining, petrochemical were key segments driving October growth.

The local currency was trading flat at Rs 83.35 against the U.S dollar on Friday.

Source: Bloomberg

The yield on the 10-year bond was flat at 7.24% on Friday

Source: Bloomberg

The Reserve Bank Of India's Monetary Policy Committee kept its benchmark repo rate unchanged at 6.50% for fifth consecutive day at the end of its two-day policy meeting.

75.8 cr shares or 12.6% equity changed hands in 13 large trades

Buyers and sellers not known immediately

Source: Bloomberg

• Indian Bank Association has signed a MOU with bank unions to revise wages.

• Annual increase in salary and allowances at 17%

• Wage revision with effect from Nov 1, 2022 for 5 years

• New pay scales after merging dearness allowance

• Distribution of annual wage increase later

• All Saturdays as holidays: IBA to Govt

Source: Statement

Renewed focus on Shree Cement Ltd.'s capacity and volume growth along with a sustained uptick in the Ebitda will likely drive further re-rating for the stock, Jefferies Financial Group Inc. has said.

The brokerage maintains a 'neutral' rating for the stock with a target price of Rs 25,750, implying a 7% downside from the current market price. This is because of the expensive valuation of the ceme

• 10.9 lakh shares changed hands in a large trade

• 0.01% equity changed hands at Rs 77.05 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

Five Star Business Finance at 87x its 30 day average

GMR Airports Infrastructure at 6.74x its 30 day average

MMTC at 2.55x its 30 day average

• 7.8% equity changed hands at price range of Rs 730 to Rs 733.80 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

Nifty touched record high level shortly after opening Friday as traders await the outcome of the Reserve Bank Of India's Monetary Policy Committee.

The central bank is largely expected to keep its repo rate unchanged at 6.50%.

The NSE Nifty 50 was 67.20 points, or 0.31% higher, at 20,968.35, , while the S&P BSE Sensex was trading 202.43 points, or 0.29% higher at 69,724.12.

"For traders, 20850-20800 for NIFTY, 69200-69050 for Sensex would be the key support zone, while 21000-21100 for Nifty and 69800-69900 for Sensex could act as key resistance areas. However, if it goes below the 20800/69050 then traders may prefer to exit out from the trading long positions as it may dip to 20700 or 20600 levels. Buying is advisable between 20650 and 20600 with a final stop loss at 20500," said Shrikant Chouhan, head equity research, Kotak Securities.

HDFC Bank Ltd., Larsen & Toubro Ltd., JSW Steel Ltd., HCL Technologies Ltd. were adding positively to the indices.

Bharti Airtel Ltd., Maruti Suzuki India Ltd., ICICI Bank Ltd., Bajaj Finance Ltd. were weighing on the indices.

Twelve out of 13 sectors gained, while one declined. Nifty Media and Realty gained the most while Nifty Pharma declined.

The broader markets outperformed the S&P BSE MidCap Index was 0.44% higher, whereas S&P BSE SmallCap Index was 0.57% higher. Eighteen out of 20 sectors compiled by BSE advanced, while two declined. S&P BSE Metal and Realty rose the most.

The market breadth was skewed in the favour of buyers. Around 2126 stocks advanced, 812 declined, and 108 remained unchanged.

• Buyback for Rs 17,000 crore received 6.55x tendering

• Offer for 4.09 crore shares closed on December 7

• Offer price of Rs 4,150 was 14.7% above closing price on Thursday

• Zomato has 9.3 crore shares or 1.06% equity changed hands in a pre-market large trade

• Buyers and sellers not known immediately

Source: Bloomberg

-The yield on the 10-year bond opened flat at 7.24% on Friday

Source: Bloomberg

The local currency opened flat at 83.36 against the U.S dollar on Friday.

Source: Bloomberg

Income Tax Appellate Tribunal Delhi granted Interglobe Aviation Ltd interim relief for demands from assessment year 2016-17, and 2017-18.

ITAT directs Jurisdictional tax officer to not take coercive measures to recover disputed demands.

Source: Exchange filing

• Titagarh Rail Systems' QIP for raising up to Rs 700 crore opened on Dec 7

• Floor price set at Rs 976.10 per share

• Floor price indicates a discount of 0.78% to the stocks previous close of Rs 983.75

Source: Exchange filing

Macquarie Group re-iterated that HDFC Bank is likely to outperform as top sector pick with a 12-month target price of Rs 2,110. 

The private lender does not expect RBI's action to increase risk weightage to cause significant increase in pricing. Asset quality remain robust.

The brokerage firm expects rates to increase by 25-50bps. NIMs to normalize at 3.7% in 18-24 months, and 4% in 4 years. NIMs are inelastic to interest rate shifts

Mortgages now being sold in 50% branches

20,000 crore impact on net worth on merger is a timing difference

Macquarie Group Ltd. said Indian banks' margin might come down by 10– 15 basis points in case the RBI cuts rates by 50 bps in the second half of the next fiscal.

The brokerage also sees loan growth moderating across the systems, credit costs to increase as recoveries decline. It also said capital levels are adequate for large private banks as it doesn't foresee any fund raise in the near term.

Morgan Stanley rated Brookfield India Real Estate Trust 'overweight' with price target of Rs 300. The brokergae see share price will rise relative to country index over next 60 days.

Special Economic Zone rules 2023 may pave the way to floor by floor de-notification, resulting in faster leasing for such zones. Morgan Stanley estimated over 80% or highly likely probability for the scenario. 

Macquarie Expects India Banks' Margin To Fall By 10-15bps

• U.S. Dollar index at 103.60.

• 10-year bond yield at 4.17%

• Brent crude up 0.15% at $74.90 per barrel

• Nymex crude up 0.68% at $69.81 per barrel 

• GIFT Nifty was down 1.0 or 0.03% at 21,076.5 as of 07.36 a.m.

• Bitcoin was up 0.09% at $43,429.12.

• Nifty December futures fell 0.04% to 21,030.80 at a premium of 129.65 points.

• Nifty December futures open interest up 7.23% to 16,239 shares.

• Nifty Bank December futures rose 0.26% to 47,047.15 at a premium of 205.75 points.

• Nifty Bank December futures open interest up 1.10% to 1,396 shares.

• Nifty Options Dec Expiry: Maximum call open interest at 21,000 and maximum put open interest at 20,000.

• Bank Nifty Options Dec. 13 Expiry: Maximum call open interest at 49,000 and maximum put open interest at 44,000.

• Securities in the ban period: Balrampur Chini Mills, Delta Corp, Indiabulls Housing Finance, the India Cements, National Aluminium, Steel Authority of India, Zee Entertainment Enterprises.

• Tata Chemical: To meet investors and analysts on Dec. 13.

• Alkem Laboratories: To meet investors and analysts on Dec. 15.

• Parag Milk Foods: To meet investors and analysts on Dec. 8.

• Titan: To meet investors and analysts on Dec. 11, 12, and 14.

• Navneet Education: To meet investors and analysts on Dec. 14.

• Mold-Tek Packaging: To meet investors and analysts on Dec. 12.

• Teamlease Services: To meet investors and analysts on Dec. 11.

• Home First Finance Co.: To meet investors and analysts on Dec. 11.

• TeamLease Services: To meet investors and analysts on Dec. 11.

• UltraTech Cement: To meet investors and analysts on Dec. 8.

• Ideaforge Technology: To meet investors and analysts on Dec. 13.

• Rallis India: To meet investors and analysts on Dec. 12.

• Move into a short-term ASM framework: Adani Energy Solutions, Adani Green Energy, New Delhi Television, TV18 Broadcast.

• Move out of short-term ASM framework: Insecticides (India), Swan Energy.

• JTL Industries: Promoter group Pranav Singla bought 9.14 lakh shares on Dec. 7.

• Usha Martin: Promoter group Usha Martin Ventures sold 18,560 shares between Dec. 4 and 5.

• Thirumalai Chemicals: Promoter group Narayan Santhanam sold 8,006 shares on Dec. 6.

• Shalimar Paints: Promoter group Surya Kumar Jhunjhunwala, Ritu Jhunjhunwala, Gaurang Jhunjhunwala, Sarika Jhunjhunwala and Shivang Jhunjhunwala sold 77.75 lakh shares between Dec. 5 and 6.

• Ethos: Promoter Mahen Distribution sold 20.53 lakh shares on Dec. 6.

• ADF Foods: Promoter Bimal R Thakkar released a pledge of 2 lakh shares on Dec. 4.

• IDFC First Bank: Dayside Investment sold 9.17 crore shares or 1.38% stake at Rs 86 apiece.

• Tube Investments of India: Motilal Oswal Mutual Fund bought 10 lakh shares or 0.51% stake at Rs 3,348.09 apiece.

• Rate-sensitive stocks: The RBI will announce the decision at its meeting of the monetary policy committee on Friday. Banking & finance, auto, housing and real-estate stocks will be in focus.

• IIFL Securities: The Securities Appellate Tribunal has set aside SEBI's order prohibiting the company from onboarding new clients for two years and reduced the monetary penalty from Rs 1 crore to Rs 20 lakh.

• Zomato: Softbank's SVK Growth plans to sell a 1.1% stake in the food-delivery company at Rs 120.5 apiece, Bloomberg reported.

• Bharat Forge: The company's unit, Kalyani Strategic Systems, proposed to acquire a majority stake in Zorya Mashproekt India. ZMI is engaged in the development of indigenous capabilities for build-ups, repairs and overhauls of all types of gas-turbine engines.

• Container Corp.: The company signed an MoU with NTPC Vidyut Vyapar Nigam to develop solar projects at its terminals.

• DB Realty: Unit Vanita Infrastructure's subsidiary acquired equity shares of DB Conglomerate Realty. Post-acquisition, DB Conglomerate Realty has become a step-down subsidiary of the company.

• IRB Infrastructure Developers: The company logged November toll collection at Rs 437 crore against Rs 366 crore in the same period last year.

• Jayaswal Neco Industries: The board approved raising up to Rs 3,200 crore through NCDs.

• Sanghi Industries: Adani Cement appointed Sukuru Ramarao as CEO and Sanjay Kumar Khanjanchi as CFO of the company effective Dec. 7.

• UPL: The company incorporated a step-down subsidiary, Advanta Seeds Zambia, in Zambia for carrying out seeds and related business.

• Jindal Saw: The board will consider fundraising at a meeting on Dec. 14.

• TVS Electronics: The company received an order from the office of the Commissioner of Customs on Dec. 6 to pay Rs 35.58 crore. It is the process of filing an appeal before the Customs Excise & Service Tax Appellate Tribunal, Chennai.

• Greenpanel Industries: The company resumed operations at its Andhra Pradesh factory from Dec. 6. It estimates a loss caused by Cyclone Michaung of Rs 3.5 crore.

• Shriram Finance: The company signed an agreement with SIDBI for co-lending to the MSMEs.

• Olectra Greentech: The company received a letter of award from Vasai Virar City Municipal Corp., Mumbai, for the supply and maintenance of 40 electric buses.

• Man Infraconstruction: The company reduced its stake in MICL Homes to 31% from 34%.

Markets in the Asia-Pacific region were trading on a mixed note, tracking gains in Wall Street, and as traders increased bets that the Bank of Japan is nearing the end of its negative interest rates.

Shares in Japan fell for a second consecutive day as its gross domestic product contracted 2.9% year-on-year, beating a Bloomberg's estimate of a 2% contraction for the quarter. Share indices in Australia and South Korea rose.

Data from the US Labor Department showed people filing for initial jobless claims rose to 2.2 lakh in the week ended on Dec. 2 from the upwardly revised 2.19 lakh claims in the previous week, in line with Bloomberg estimate.

This indicated the tight labour market in the US, which has been a matter of concern a few months back, has now softening in a gradual manner.

The S&P 500 index and Nasdaq Composite rose by 0.8% and 1.37% respectively as of Thursday. The Dow Jones Industrial Average rose by 0.17%.

Brent crude was trading 0.95% higher at $74.75 a barrel. Gold was up by 0.15% to $2,031.46 an ounce.

The GIFT Nifty was down 0.02% at 21,077.0 as of 7.30 a.m.

On the domestic front, market participants will closely monitor the outcome of the Reserve Bank of India's MPC meeting.

The benchmark indices had snapped a seven-day gaining streak to end marginally lower on Thursday as Bharti Airtel Ltd., ITC Ltd. and Larsen & Toubro Ltd. weighed on them.

The NSE Nifty 50 settled 37 points or 0.17% lower at 20,901.15, while the S&P BSE Sensex closed 132 points or 0.19% down at 69,521.69.

Overseas investors stayed net sellers in Indian equities for the second consecutive session on Thursday. Foreign portfolio investors offloaded stocks worth Rs 1,564 crore, while domestic institutional investors turned net sellers after a day and sold stocks worth Rs 9.7 crore, the NSE data showed.

The rupee had weakened 2 paise to Rs 83.35 against the dollar on Thursday.