SSPL WEALTH PVT LTD

End - Session

Detailed review of the post market session of the day.

Indices slump 4 days straight, Fed's hawkish tone weighs

19-Dec-24 17:20 Hrs IST

Key equity benchmarks tumbled for the fourth consecutive day on Thursday, fueled by negative global sentiment. The Federal Reserve's decision to slash interest rates by 25 basis points on Wednesday, its third consecutive rate reduction, provided some respite. However, the central bank's hawkish stance, signaling fewer rate cuts in 2025 due to persistent inflation and a robust economy, dampened market spirits.

The Nifty 50 index struggled to hold the 24,950 mark, as IT and financial services stocks tanked. Conversely, pharma and healthcare stocks bucked the trend and attracted buying interest. Volatility gripped the market as the weekly index options on the NSE expired.

The S&P BSE Sensex tumbled 964.15 points or 1.20% to 79,218.05. The Nifty 50 index dropped 247.15 points or 1.02% to 23,951.70. In four consecutive trading sessions, the Sensex and Nifty plunged by 3.54% and 3.29%, respectively.

ICICI Bank (down 1.83%), Reliance Industries (down 1.79%) and Infosys (down 1.55%) were major drags.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index slipped 0.30% and the S&P BSE Small-Cap index fell 0.28%.

The market breadth was weak. On the BSE, 1680 shares rose and 2315 shares fell. A total of 100 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.95% to 14.51.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 2.22% to 6.901 as compared with the previous close of 6.861.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.09 compared with its close of 84.9450 during the previous trading session. The Indian rupee hit a fresh record low of 84.9900 against the US dollar on Thursday.

MCX Gold futures for the 5 December 2024 settlement shed 0.56% to Rs 76,220.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 107.91.

The United States 10-year bond yield rose 0.60% to 4.528.

In the commodities market, Brent crude for February 2025 settlement added 6 cents or 0.08% to $73.45 a barrel.

Global Markets:

The Dow Jones index futures were up 141 points, signaling a strong opening for U.S. stocks today.

European and Asian stocks dropped on Thursday, following the Federal Reserve's decision on Wednesday.

Investors are now focused on the Bank of Japan's policy decision later today. Market sentiment is divided over whether the bank will opt for a rate hike or maintain its current stance.

The Fed's rate cut brought the target range to 4.25%-4.50%. While Chair Jerome Powell emphasized that future rate reductions would depend on inflation progress, the central bank's updated economic projections suggest a lessdovish stance than previously anticipated. Policymakers now foresee two 25-basis-point rate cuts next year, compared to the four cuts projected in September.

The Fed's projections also indicate that inflation remains above the 2% target. It expects inflation to be 2.4% this year and 2.5% next year. Additionally, the central bank forecasts slightly stronger economic growth and lower unemployment in 2025.

The prospect of higher-for-longer interest rates weighed heavily on Wall Street on Wednesday. Technology stocks bore the brunt of the sell-off, with NVIDIA, Tesla, Intel, and Broadcom experiencing significant declines.

The S&P 500 fell 3%, the NASDAQ Composite dropped 3.6%, and the Dow Jones Industrial Average declined 2.6%. The Dow's 10-day losing streak is its longest since 1974.

New Listing:

Shares of Inventurus Knowledge Solutions settled at Rs 1960.25 on the BSE, representing a premium of 47.50% as compared with the issue price of Rs 1329.

The scrip was listed at Rs 1,856, exhibiting a premium of 39.65% to the issue price. The stock has hit a high of 2,030 and a low of 1851. On the BSE, over 9.93 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Tata Motors slipped 1.51%. The company announced that it has secured an additional order for 148 electric buses from Bengaluru Metropolitan Transport Corporation (BMTC).

Spicejet surged 8.97% after the company has reached an amicable settlement with Genesis, resolving their over $16 million dispute.

IOL Chemicals & Pharmaceuticals jumped 8.81% after the company's board will meet on 27 December 2024 to consider and approve sub division or split of existing equity shares of the company.

Asian Paints declined 2.25% following resignation of two senior management executives, Shyam Swamy and Vishu Goel.

Vishu Goel, associate vice president, retail sales, commercial & marketing and Shyam Swamy, vice president, home improvement, d'cor, services & retailing has resigned from the services of the company.

Meanwhile, the board has approved the appointment of Ashish Rae, currently associate vice president - project sales as associate vice president - retail sales, marketing & commercial and as a senior management personnel of the company with effect from 2nd January 2025.

Gagandeep Singh Kalsi, associate vice president - strategy, business development, will handle d'cor and services with effect from 23rd December 2024.

Easy Trip Planners declined 1.84%. The company announced a strategic partnership with OLX India to introduce travel booking services on OLX's platform.

Doms Industries dropped 4.11% after the company's holding firm, FILA has sold 4.57% equity share capital of the company through accelerated bookbuilding process (ABB).

Nazara Technologies slipped 1.54%. The company said that its subsidiary Nodwin Gaming has entered into a share purchase agreement with AFK Gaming and its shareholders for acquiring 92.30% stake in AFK for an aggregate consideration of Rs 7.58 crore.

Steel Exchange India fell 2.59%. The firm announced that its board has approved raising of funds up to Rs 600 crore through the issuance of equity shares or other eligible securities in one or more tranches.

Yatharth Hospital & Trauma Care Services advanced 2.50% after the company's board has approved the opening of issue of qualified institutional placement (QIP) of equity shares with the floor price of Rs 626.18 per equity share.

Enviro Infra Engineer advanced 2.16% after the company's consolidated net profit surged 180.38% to Rs 35.58 crore in Q2 FY25 as compared with Rs 12.69 crore in Q2 FY24. Revenue from operations increased 77.82% YoY to Rs 213.01 crore in Q2 FY25.

Cummins India fell 4.63%. The company said that its board has approved appointment of Prasad Kulkarni, as interim chief financial officer (CFO) and key managerial personnel of the company with effect from 10 January 2025, until a new CFO is appointed by the board.

Brigade Enterprises gained 2.82% after the company has announced the launch of 'Brigade Citrine', the company's residential project in Budigere Cross, Whitefield, Bengaluru, with a revenue potential of Rs 500 crore.

Welspun Specialty Solutions lost 1.30%. The company said that its nomination and remuneration committee has approved the appointment of Navin Agarwal as the chief financial officer (CFO) of the company with effect from 19 December 2024.

IPO Update:

The initial public offer (IPO) of DAM Capital Advisors' IPO received bids for 5,71,69,722 shares as against 2,08,04,632 shares on offer, according to stock exchange data at 17:00 IST on 19 December 2024. The issue was subscribed to 2.75 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 269 and Rs 283 per share. An investor can bid for a minimum of 53 equity shares and in multiples thereof.

Mamata Machinery's IPO received bids for 8,53,20,334 shares as against 51,78,227 shares on offer, according to stock exchange data at 17:00 IST on 19 December 2024. The issue was subscribed to 16.48 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 230 and Rs 243 per share. An investor can bid for a minimum of 61 equity shares and in multiples thereof.

Transrail Lighting's IPO received bids for 2,87,61,926 shares as against 1,39,16,742 shares on offer, according to stock exchange data at 17:00 IST on 19 December 2024. The issue was subscribed to 2.07 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 410 and Rs 432 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

Concord Enviro Systems' IPO received bids for 29,79,585 shares as against 50,15,356 shares on offer, according to stock exchange data at 17:00 IST on 19 December 2024. The issue was subscribed to 0.59 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 665 and Rs 701 per share. An investor can bid for a minimum of 21 equity shares and in multiples thereof.

Sanathan Textiles' IPO received bids for 56,67,016 shares as against 1,26,22,950 shares on offer, according to stock exchange data at 17:00 IST on 19 December 2024. The issue was subscribed to 0.45 times.

The issue opened for bidding on 19 December 2024 and it will close on 23 December 2024. The price band of the IPO is fixed between Rs 305 and Rs 321 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.