Nifty closes below 200-Day moving average, marking its worst week in 2024
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Market Overview
Nifty opened flat at 23,960.70 and, after an initial dip to 23,900, surged 160 points to reach a high of 24,065.80. However, the market quickly nosedived by 230 points within 20 minutes, hitting the 23,830 level. It made another attempt to cross 23,950 but failed, leading to another sharp decline. From 11 a.m. onwards, the market continued its downward trajectory, eventually closing at 23,587.50, down 1.52%.
Nifty recorded its worst week of the year, possibly due to Foreign Institutional Investor (FII) outflows and unfavorable global factors. Concerns over slower rate cuts projected by the Federal Reserve and weakness in global markets also contributed to the decline.
Broader Market Performance:
The broader market sentiment remained highly weak. Only 535 stocks advanced, a sharp drop from 1,095 in the previous session, while 2,267 stocks declined, up from 1,706. This highlights a significantly negative market breadth on the NSE.
Sectoral Performance:
Sectoral trends were broadly negative, with all major sectors ending the day in the red. The Pharma sector declined by 0.86%, FMCG dropped 1%, IT fell 2.63%, PSU slid 2.65%, and the Realty sector registered the steepest loss, plunging nearly 4%.
Note: The above numbers for Commodity futures were taken around 4 pm.
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 26th December:
The maximum Call Open Interest (OI) is observed at 24,000, followed by 23,900, while the maximum Put Open Interest is at 24,000, followed by 23,500.
The unwinding of Put OI at the 24,000 strike, coupled with the market's decline, suggests that the 24,000 level has lost its support for the week.
On the downside, immediate support is seen at 23,500, followed by the 23,300 range. On the upside, resistance is expected at the 23,800–23,900 range, with 24,000 acting as the critical resistance level moving forward.
Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.
Source: Sensibull
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What’s happening in India
International Gemmological Institute shares listed on the NSE at Rs 510, a 22% premium over its IPO price of Rs 397-417, following a 34x subscription.
IT stocks saw early gains following Accenture's positive Q1 results, before closing lower. Accenture reported Q1 revenue of $17.7 billion, surpassing expectations, driven by growing demand for AI tools. New bookings rose to $18.7 billion, with the company projecting annual revenue growth of 4% to 7%. Dive deeper
The Indian rupee hit a record low of 85 per USD, pressured by a strong dollar and a hawkish Federal Reserve, alongside a widening trade deficit and revised GDP growth forecast of 6.6%. Dive deeper
Mazagon Dock Shipbuilders Ltd. (MDL) began production of the first Fast Patrol Vessel (FPV) for the Indian Coast Guard (ICG) and the plate cutting for the second Next Generation Offshore Patrol Vessel (NGOPV). MDL has contracts to deliver 14 FPVs and 6 NGOPVs to ICG, with a total project value of Rs 2685.36 crores. Dive deeper
SpiceJet (-5.69%) has partnered with StandardAero Inc. to return its grounded Boeing 737-8 MAX fleet to service by April 2025. This collaboration, supported by CFM International and lessors, is part of the airline's ongoing fleet restoration and network expansion efforts. Dive deeper
Alembic Pharmaceuticals has received USFDA approval for Divalproex Sodium Delayed-Release Capsules USP, 125 mg, equivalent to AbbVie’s Depakote Sprinkle Capsules. The product, with an estimated market size of $61.1 million, is used for treating seizures. Dive deeper
Shriram Finance (-2.31%) has consolidated its green financing efforts under Shriram Green Finance, focusing on electric vehicles, renewable energy, and energy-efficient machinery. The company aims to achieve ₹5,000 crores in assets under management (AUM) over the next 3-4 years, targeting semi-urban and rural areas. Dive deeper
Tata Consultancy Services (TCS) has expanded its partnership with the Bank of Baroda to support financial inclusion. Over the next five years, TCS will deploy its Financial Inclusion Gateway Solution, helping over 55,000 agents serve 6 crore customers. This initiative will provide key banking services and assist in enrolling customers in government schemes. Dive deeper
Thermax Limited has successfully completed the acquisition of 100% equity share capital of Buildtech Products India Private Limited (Buildtech), making it a wholly owned subsidiary of the company. Dive deeper
Tata Power Renewable Energy Limited has partnered with Canara Bank to promote the PM Surya Ghar Scheme, providing affordable financing for rooftop solar systems. The scheme offers loans up to ₹6 lakh with competitive interest rates and flexible terms, making solar energy accessible to Indian households. Dive deeper
Maruti Suzuki India Limited (-0.49%) will showcase its first eBorn Electric SUV, the e VITARA, at the Bharat Mobility Global Expo 2025. Built on the HEARTECT-e platform, the e VITARA integrates advanced electric technology with top safety features, aiming to enhance the EV ownership experience. Dive deeper
DCM Shriram Ltd. has been ranked in the top 7% of 523 global chemical companies in the S&P Global Corporate Sustainability Assessment 2024, with a score of 59, reflecting its commitment to sustainability, governance, and social responsibility. Dive deeper
ICICI Lombard has acquired a 0.06% stake in Bajaj Finance Limited, investing ₹0.14 billion on December 19, 2024, as part of its routine investment activities. Dive deeper
Ola Electric announced the expansion of its network to 4,000 stores nationwide by December 25, 2024, including 3,200 co-located service centres, to make EVs more accessible across India. Dive deeper
Hyundai Motor India Limited (HMIL) has announced that it will equip its domestic vehicle lineup with Made-in-India AGM (Absorbent Glass Mat) battery technology from Amara Raja Energy & Mobility Limited (ARE&M). Dive deeper
Amara Raja Energy & Mobility's shares rose 4.4% following a positive announcement but later closed 1.86% lower.
Exide Industries' shares rose nearly 4% before closing 3.05% lower at ₹426.30 after Hyundai Motor India signed a binding agreement with its subsidiary, Exide Energy Solutions Ltd. (EESL), to supply lithium-ion cells and battery packs for its electric vehicles. The partnership marks a significant step in Hyundai's use of made-in-India battery cells, with a new ₹100 crore investment to support EESL's manufacturing plant in Bengaluru. Dive deeper
Siemens shares fell 10% to ₹6,868.90 on December 20, 2024, following a slowdown in investment and a weaker order pipeline. Despite reporting an 11.3% YoY revenue growth in Q4 2024, the stock faces bearish momentum with support at ₹6,772 and ₹6,386. The company’s demerger of Siemens Energy is expected to be completed in 2025. Dive deeper
Nestle India Ltd. stated that Switzerland's suspension of the 'most favoured nation' status will not impact the company, as it relates to a government policy issue. The company already applies a 10% withholding tax on cross-border payments, so the change has no effect on its operations. Dive deeper
Kalpataru Projects International Ltd. will consider a prepayment of Rs 50 crore worth of non-convertible debentures (NCDs) in a board meeting on Dec. 24. The NCDs will be repaid on Jan. 10, 2025. The company also raised Rs 1,000 crore through a qualified institution placement, issuing 83.26 lakh shares at Rs 1,201 each. Dive deeper
Dhanlaxmi Bank Ltd. (3.64%) has approved a rights issue of 14.16 crore shares, raising Rs 297.54 crore at Rs 21 per share. The issue opens on Jan. 8, 2025, and closes on Jan. 28, 2025, with the record date on Dec. 27, 2024. Dive deeper
InterGlobe Aviation Ltd. (-0.86%) approved a $43 million loan to its subsidiary, InterGlobe Aviation Financial Services IFSC Pvt., as part of setting up a financial services arm with a Rs 30 crore investment in Gujarat. Dive deeper
IndusInd International Holdings (IIHL) is raising ₹4,300 crore through NCDs, with Barclays contributing ₹1,000 crore, to complete its Reliance Capital acquisition by January 2025. The NCDs offer a 15% return, secured against Reliance Capital shares. Additionally, IIHL plans to raise ₹1,000 crore from divesting non-core assets. Dive deeper
Indian Oil Corporation (IOC) will invest over Rs 21,000 crore to expand its Barauni refinery to 9 million tonnes per annum (MTPA) and set up a city gas distribution network across 27 cities in Bihar. Dive deeper
Hindustan Construction Company Ltd. (-1.11%) raised Rs 600 crore through its Qualified Institutional Placement, issuing 139.5 million shares at Rs 43.01 each. The funds will support business growth, working capital, and debt reduction. Dive deeper
KPI Green Energy Ltd. shares rose 5% following the announcement of a 1:2 bonus issue, with a record date set for January 3, 2025. The bonus shares, subject to shareholder approval via postal ballot, will be dispatched by January 14, 2025. Dive deeper
The Delhi High Court allowed the Serious Fraud Investigation Office (SFIO) to continue its probe into Hero Electric over a FAME-II subsidy fraud after settlement talks with the government failed. Hero Electric allegedly claimed Rs 133.5 crore in subsidies by violating FAME-II guidelines. Dive deeper
Vakrangee Limited's stock rose 2.12% after announcing a partnership with Canara Bank to offer banking services through its Kendra networks in the east zone. The services include opening accounts, loan repayments, card applications, and passbook updates. Dive deeper
What’s happening globally
The House rejected President-elect Donald Trump's funding plan on December 19, 2024, failing to secure the necessary votes for passage ahead of a government shutdown. Despite Trump's announcement of a deal, his demands faced resistance from Democrats, leaving Speaker Mike Johnson's efforts unsuccessful as the bill was defeated 174-235. Dive deeper
China kept its benchmark lending rates unchanged at 3.1% for the one-year loan prime rate and 3.6% for the five-year LPR. The decision comes amid economic challenges and pressure on the yuan, following a 25-basis-point rate cut by the U.S. Federal Reserve. Dive deeper
The dollar index remained at 108.4, its highest since November 2022, as investors awaited the PCE report. Despite a recent rate cut, the Fed signaled fewer cuts in 2025, adjusting its economic outlook, with markets expecting rates to stay unchanged in January. Dive deeper
The STOXX 50 and STOXX 600 fell 1% and 0.9%, respectively, due to concerns over a second Trump administration and US political instability. Both indices posted their worst weekly losses in three months. Dive deeper
The US Personal Consumption Expenditures (PCE) price index likely rose 0.2% in November 2024, with the core PCE (excluding food and energy) also increasing by 0.2%. Annual PCE inflation is expected to rise to 2.5%, while core PCE inflation is forecasted to reach 2.9%. Dive deeper
UK retail sales rose 0.2% month-over-month in November 2024, recovering from a 0.7% decline in October but missing the 0.5% forecast. Growth in food and non-food stores was offset by a 2.6% drop in clothing sales, the lowest since January 2022. Year-on-year, retail sales increased by 0.5%, below October’s 2% rise and forecasts of 0.8%. Dive deeper
Germany's producer prices rose 0.1% year-on-year in November 2024, rebounding from a 1.1% decline, driven by higher costs in capital goods and consumer products. Excluding energy, prices increased by 1.3%, with a 0.5% monthly rise, the largest since April 2023. Dive deeper
Japan's annual inflation rose to 2.9% in November 2024, its highest since October 2023, driven by a surge in food, electricity, and gas prices. Core inflation also climbed to 2.7%, surpassing expectations, while the CPI increased by 0.6% month-on-month, the biggest rise in 13 months. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Gwanggu Lee, CEO of Kia India Managing Director on sales outlook for 2025
"The growth of the economy of 6 percent is not bad… This is good… India is still going up, because the economy is growing… It means new customers and new households are able to afford to buy new cars," - Link
Anish Shah, CEO of Mahindra Group on significant growth trajectory” for electric vehicles.
“The reason for that is the EV powertrain enables in many ways a much better vehicle and that is far superior to hybrid or even ICE (internal combustion engine) in terms of how you drive the vehicle. So that's one advantage for the customer,” - Link
Suparna Mitra, CEO of Watches & Wearables, Titan Company
“India has a large and growing youth demographic, many of whom are keen to consume new and exclusive items. They are fashion-conscious, and accessories like watches help define their personalities. This represents a significant growth opportunity, particularly in the non-premium segment, which addresses the rising demand for fashion and individuality.” - Link
Calendars
In the coming days, we have the following major events and corporate actions:
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