Share Market Highlights 14 December 2023: Sensex settles above 70k, Nifty closes at 21,183 on Fed’s rate cut prospects

The Indian rupee closed stronger on Thursday but lagged behind its Asian peers that sharply rallied after the US Federal Reserve delivered a dovish hold on policy rates on Wednesday.

The rupee ended at 83.33 against the US dollar, up by 0.08 per cent compared to its close of 83.40 in the previous session.

While the rupee had opened stronger at 83.2725, dollar demand from importers and oil companies ate into the local unit’s gains, traders said.

Infibeam Avenues Ltd, a listed fintech company, announces its strategic foray into the capital markets and digital lending software market by acquiring a significant 49% equity stake in Pirimid Fintech, investing Rs 25 crore to solidify this strategic partnership. 

This move is in direct response to the surging demand in the thriving global capital markets for cutting-edge secured and zero latency AI backed software to streamline trading, research and investment processes. Artificial Intelligence (AI) is transforming the capital market, with stockbrokers, mutual funds, corporate treasuries, and investment banks using AI backed trading software for algorithmic trading strategies, which not only boosts performance, accuracy, and returns but also enhances compliance, fraud detection and prevention

Mazagon Dock Shipbuilders has launched the SaurShakti, Ukxifed, the nation’s fastest solar-electric boat. Developed through collaboration with NavAIt (NavAlt solar electric boat Pvt. Ltd.) Kochi, this vessel represents a paradigm shift in eco-friendly Maritime Transportation.

Indian markets surged on Thursday, driven by positive global cues amidst the US Federal Reserve’s dovish stance. With rates unchanged for the third consecutive time due to easing inflation, the Fed anticipates three rate cuts in the coming year. While NSE Nifty advanced 256.35 points or 1.23% to 21, 182.70, BSE Sensex climbed 929.60 points or 1.34% to 70,514.20. Within the Nifty pack, major gainers included Infosys (3.93%), Tech Mahindra (3.67%), LTIMindtree (3.54%), Wipro (3.42%) and HCL Tech (3.24%). Conversely, major losers were Power Grid (1.90%), HDFC Life (1.75%), Nestle India (0.98%); Cipla (0.95%) and JSW Steel (0.63%). Major stocks that hit a 52-week high include Onward Technologies (19.99%), Tera Software (18.70%), Cyber Media (18.26%), Housing & Urban Development (17.81%), and HOV Services (14.72%). 

Infibeam Avenues’ board has approved to acquire the 100% stake of Infibeam Avenues Saudi Arabia for Information Systems Technology. Co, from Vavian International Limited, a Wholly Owned Subsidiary of the Company. 

The stock rose 0.36% on the BSE, trading at ₹22.39.

Jupiter Wagons Limited has awarded an order to the company for manufacture and supply of 4,000 BOXNS Wagons for a contract value of ₹1,617 Crore. The stock trades at ₹327.25 on the BSE, up by 3.91%.

NSE Nifty rose by 1.2%, reaching 21,176.70, while BSE Sensex climbed 1.29% to 70,485.51 by 3:10 pm.

Major gainers on the NSE at 3 pm:

Tech Mahindra (4.09%); LTIMindtree (3.60%); Infosys (3.43%); HCL Tech (3.18%); Wipro (3.04%)

Major losers:

HDFC Life (-2.36%); Power Grid (-2.11%); Tata Consumers (-1.11%); Nestle India (-1.08%); Cipla (-0.99%)

Stocks advanced on BSE at 3 pm on December 14, 2023, were 2,112 against 1,628 stocks that declined; 125 stocks remain unchanged. The total stocks traded were 3,865. The number of stocks that recorded a 52-week high was 412, and those that hit a 52-week low was 15.

Happy Forgings has a fixed price band of Rs 808 to Rs 850 per equity share for its proposed initial public offering which opens for subscription on Tuesday.

Investors can bid for a minimum of 17 equity shares and in multiples of 17 equity shares thereafter. 

The public issue comprises fresh issuance of equity shares up to Rs 400 crore and an Offer for Sale of up to 7,159,920 equity shares.

The company has emerged as a leading player in the domestic crankshaft manufacturing industry with the second largest production capacity for commercial vehicles and high horse-power industrial crankshafts in India. 

The company owns and operates three manufacturing facilities, of which two are located at Kanganwal in Ludhiana, Punjab and one is located at Dugri in Ludhiana, Punjab. The annual aggregate installed capacity for forging and machining stands at 120,000 tonne and 47,200 tonne as of September-end. 

HFL’s revenue from operations increased by 39 per cent to ₹1,196 crore in FY’23 from ₹860 crore in FY22. Restated net profit increased from ₹142 crore in FY22 to ₹209 crore in FY23. For the six months ended September, the revenue was at ₹673 crore and net profit was at ₹119 crore.

Adani Energy Solutions has incorporated a wholly owned subsidiary company in the name of “Sunrays Infra Space Two Limited”. The stock trades at ₹1,074.40 on the NSE, up by 4.22%.

Tata Technologies inaugurated its new innovation centre in Coimbatore, dedicated to the development, testing, and integration of vehicle software solutions for global customers. The initiative aligns with Tata Technologies’ commitment to supporting automotive OEMs and Tier-1s in creating software-defined vehicles and e-mobility solutions.

Read more here.

NBCC India stock rose by 3.12% on the NSE, trading at ₹82.70, after the company bagged ₹1,500 crore project management consultancy contract for the construction of 1,469 warehouses and other infrastructure related to the agriculture sector.

Escorts Kubota stock inches up by 0.54% on the NSE, trading at ₹3,143. Harish Lalchandani has resigned as the Chief Officer – Agri Machinery Business Division of the company with effect from February 28.

Asian Granito India has informed the exchanges regarding the inaugration of a showroom in Delhi NCR’.

The stock rose 1.43% on the NSE, trading at ₹74.55.

Lupin has announced the launch of its new state-of-the-art Regional Reference Laboratory in Chennai, Tamil Nadu. The stock trades at ₹1,249.75 on the NSE down by 0.17%.

Read more here.

Sensex was up 1.37% or 953.48 pts at 70,538.08 at 2:15 PM. At the same time, Nifty was up 1.29% or 269.10 pts at 21,195.45. 

CG Power and Industrial Solutions has signed a Term Sheet with K Raheja Corp. Group for the joint development of the Company’s Property ‘CG House’ situated at Worli, Mumbai, built on leasehold land. K Raheja Corp will be granted development rights by the Company to develop the said land measuring 4262.34 square meters, by demolishing the existing structure and constructing buildings. The Development Agreement is expected to be signed within 45 days of the execution of the Term Sheet. The Company and the Developer will be entitled to 50% share of the leasehold right and the developed building. The project is expected to be completed over 5 years.

Shree Cement has informed that the company has commissioned the Nawalgarh Cement Plant with a Clinker capacity of 11,500 tonnes per day (3.8 million tonnes per annum) and a cement capacity of 3.5 million tonnes per annum. The stock inched up by 0.67% on the NSE, trading at ₹28,726.90.

Alphalogic Industries Ltd has won an order to design, manufacture, supply and installation of Storage Racking System from Scootsy Logistics Private Limited (known as “Swiggy”) for their unit based in Thane in Maharashtra and Malkajigiri in Telangana. 

The stock trades at ₹173.50 on the BSE, down 7.22%.

Zydus Lifesciences Ltd has received final approval from the USFDA for Cyclophosphamide Capsules USP, 25 mg and 50 mg (USRLD: Cyclophosphamide Capsules, 25 mg and 50 mg). The stock trades at ₹643.40 on the NSE, up by 0.16%.

Read more here.

Jindal Saw board has inter-alia approved raising funds by way of issuance of equity shares and / or other securities convertible into equity shares for an aggregate amount not exceeding ₹ 1,000 Crore by way of one or more qualified institutions placement (‘QIP’). 

The stock inched up by 0.81% on the NSE, trading at ₹433.80.

The board of Can Fin Homes is scheduled to be held on December 22, 2023, inter-alia, to consider the proposal for payment of ‘Interim Dividend’ for the financial year 2023-24 and to fix ‘Record date’ for the purpose of payment of Interim Dividend, if any.

The stock rose 1.24% on the NSE, trading at ₹785.10.

Reliance Industries, Lloyds Metals and Capri Global – Biggest, Fastest, and Most Consistent Wealth Creator, respectively, between 2018 and 2023. Adani Enterprises is the top All-round Wealth Creator.

Technology sector is the largest wealth creating sector between 2018 and 2023, followed by the Consumer and Financials sector.

Economic Profit is a superior metric to Accounting Profit to understand true profitability of a company

TEM (Trend, Endowment and Moves) is a sound strategy for companies to move up the Economic Profit Power Curve

Successful TEM companies bought at reasonable price improve the chances of hockey-stick returns

Mid and small caps are favourably placed to deliver hockey-stick returns

After two decades of sustained decline, PSU stocks are on a comeback

Oriental Foundry Private Limited, a Wholly Owned Subsidiary of Oriental Rail Infrastructure, has secured order worth over ₹485 crore for manufacture and supply of 1,200 BOXNS Wagons from Indian Railways. The stock rises by 4.46% on the BSE, trading at ₹166.45.

For the third time in a row, the Federal Open Market Committee (FOMC) has decided to keep the federal funds rate target range at 5.25%– 5.50%. The FOMC reports that there is slowing of the expansion of economic activity. The unemployment rate continues to be low. The rate of inflation has softened as compared to the beginning of the year. The US banking system is stable and strong. The Committee continues to pay close attention to inflationary threats. The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.

The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on reserve balances at 5.4%, effective December 14, 2023. The Board of Governors of the Federal Reserve System voted unanimously to approve the establishment of the primary credit rate at the existing level of 5.5%. -- Sanjeev Agrawal, President of PHD Chamber of Commerce and Industry 

Cyient DLM launches new precision machining facility in Bangalore having current capacity of 60,000 hours per year.

Read more here.

Top gainers of Nifty IT stocks:

Mphasis (7.70%); Coforge (5.81%); Persistent Systems (5.03%); LTTS (4.28%); Tech Mahindra (4.23%)

Equity markets across the world are on a strong rise after the US Federal Reserve meeting outcome on Wednesday. The Dow Jones Industrial Average in the US had surged over a per cent on Wednesday to close at record highs. The Indian benchmark indices, Sensex and Nifty 50 are also at new highs today.

Mumbai-based Credo Brands Marketing has fixed the price band at ₹266 to ₹280 per Equity Share for its initial public offer. The IPO of the company will open on December 19 for subscription and close on December 21.

Investors can bid for a minimum of 53 Equity Shares and in multiples of 53 Equity Shares thereafter.

The Offer of face value of ₹2 per Equity Share is entirely an offer for sale up to 1,96,34,960 equity shares.

A confluence of domestic and global factors is driving a Goldilocks scenario in the Indian equity market. Unwavering political stability, a robust macroeconomic backdrop with healthy GDP growth and subdued inflation, and weakening dollar and US bond yields amid expectations of a 2024 rate cut have fueled bullish momentum. Moreover, a recent slump in crude oil prices has eased inflation pressure, further boosting investor confidence. Adding fuel to the fire, foreign institutional investors (FIIs) are exhibiting signs of FOMO, eager not to miss out on this potential multi-year bull run. With such a compelling confluence of factors, investors are advised to stay invested. 

The Indian market looks poised for further gains, with Nifty’s immediate upside target sitting at 21315. This rally has the potential to extend towards the 22000 mark, though downside support lies at 20770. Bank Nifty also exhibits bullish momentum, facing immediate resistance at 48000. Above this, a swift climb towards the 50,000 mark could be in store. The 47000–46800 area will be a strong support zone.

Bharat Forge has informed that Citibank N.A., acting as the Depository has issued a Notice of Termination to the holders of Global Depository Receipts (GDRs) of the Company. According to the notice, the termination of the GDR program will become effective on January 15, 2024, and post termination date, the GDRs will be delisted from Luxembourg Stock Exchange. 

Bharat Forge stock trades flat at ₹1,193.80.

Dhabriya Polywood Ltd has received work order from Omaxe Group for supply and installation of uPVC Windows & Doors for total value of ₹5.98 crore. Dhabriya Polywood stock trades at ₹400.75 on the BSE, up by 2.21%.

Taneja Aerospace and Aviation has informed about the appointment of Durga Rao as Chief Operating Officer (COO) of the Company w.e.f. December 13, 2023. The stock trades at ₹286 on the BSE, down by 1.63%.

Lead futures (December contract) on the Multi Commodity Exchange (MCX) has seen a recovery this week after depreciating over the past three weeks. The support band of ₹180-181 arrested the fall.

HCL Tech has been chosen by the Department of Transport and Planning in Victoria, Australia, to automate the concession entitlement process for public transport users. The stock trades at ₹1,410.60 on the NSE, up by 3.02%.

State Pollution Control Board (SPCB), Odisha, has issued consent to operate for Bagiaburu Iron Ore mines of The Orissa Minerals Development Company Limited (OMDC) for production Iron Ore (ROM) of 3,60,000 TPA in the mine lease area at Keonjhar District, Odisha. 

Orissa Minerals stock jumps 6.32% on the BSE, trading at ₹8,000.

Wardwizard Foods and Beverages Limited announced the signing of a significant Memorandum of Understanding (MoU) with the Government of Gujarat, marking expansion of food manufacturing capabilities in the state.

Wardwizard Foods stock trades at ₹32.96 on the BSE, up by 9.98%.

Tata Technologies has inaugurated its first innovation centre in Coimbatore, focused on innovating solutions for global customers through development, testing, and integration of vehicle software solutions. The stock trades at ₹1,249.35 on the NSE, down by 0.08%.

Major gainers on the NSE at 12:

Tech Mahindra (3.27%); Bajaj Finance (3.20%); LTIMindtree (3.11%); HCL Tech (2.92%); IndusInd (2.79%)

Major losers:

Power Grid (-1.88%); HDFC Life (-1.62%); BPCL (-0.96%); Nestle India (-0.86%); Cipla (-0.53%)

Stocks advanced on BSE at 12 noon on December 14, 2023, were 2,241 against 1,379 stocks that declined; 134 stocks remain unchanged. Total stocks traded were 3,754. The number of stocks that recorded a 52-week high was 375, and those that hit a 52-week low was 11.

Apple Inc faces a potentially hefty fine as well as a ban on App Store rules it allegedly used to thwart music-streaming rivals, in the European Union’s latest crackdown on Big Tech.

EU regulators are putting the finishing touches to a decision on Apple’s practice of blocking music services from pushing their users away from the App Store to alternative, cheaper, subscription options, according to people familiar with the investigation. The decision is slated for early next year, they added

Onward Technologies (19.99%)

Tera Software (18.70%)

Cyber Media (18.26%)

Housing & Urban Development (17.81%)

HOV Services (14.72%)

While the growth in rural areas continues to be muted, Godrej Consumers have seen offshoots in a few of its product categories. The stock trades 0.38 per cent higher at 1,049.95 on NSE.

Capri Global Capital Limited has announced the appointment of Satish Shimpi as Chief Compliance Officer with effect from December 18, 2023. The stock trades at ₹763.35 on the NSE, down by 0.05%.

Kovilpatti Lakshmi Roller Flour Mills Limited has announced appointment of N. Balakrishnan as Chief Operating Officer (COO) of the Engineering Division of the Company with effect from 14th December, 2023.

Major gainers on the BSE at 11:

Housing and Urban Development (18.95%); TD Power Systems (8.96%); Mastek (8.58%); SAIL (8.45%); Sonata (7.75%)

Major losers:

MFSL (-3.55%); Maharashtra Seamless (-3.49%); JP Associates (-2.86%); Subex (-2.72%); Scheinder (-2.64%)

JSW Steel Ltd. has announced that the Company’s flagship decarbonisation program - SEED (Sustainable Energy Environment and Decarbonization) has been honoured as one of the top global Energy Transition Changemakers in the category of “Heavy Emitting Sectors” at the COP28 Energy Transition Changemakers event. 

The stock trades at ₹852.40 on the NSE, up by 0.12%.

Angel One Limited has approved grants of 7,226 Restrictive Stock Units (RSUs) convertible into equal number of Equity Shares of face value of ₹10 each to 1 eligible employee under the Angel Broking Employee Long Term Incentive Plan 2021 (LTI Plan 2021). The stock surges by 4.90% on the NSE, trading at ₹3,187.40.

Bank Nifty opened today with a considerable gap-up at 47,567.65 as against yesterday’s close of 47,092.25. It is currently at 47,780, up 1.5 per cent.

Read the prediction here.

Nifty 50 has opened with a wide gap-up today and is trading strong. The index has risen well above the 21,000 mark after struggling to breach this level over the past few days. The rise in the Nifty has come on the back of the US Federal Reserve meeting outcome on Wednesday night. 

Read the prediction here.

Geojit Financial Services on Nifty outlook:

Reclaiming of 20800-850 region not only negates the efforts of bears yesterday, but also allows the resumption of an upside trajectory aiming at 21,030-21,220, or 21,600 in an optimistic scenario. Alternatively, inability to float above the 20,890 region would weaken the bullish construct again, but a collapse is less favoured today.

Nifty outlook by Prabhudas Lilladher:

The index would need a decisive breach above 21,000 levels to carry on with the uptrend and expect for next higher targets of 21,800-21,900 in the coming days with major support lying near the 20,550 zone of the rising trendline zone. 

The support for the day is seen at 20800 while the resistance is seen at 21050.

Fast-Moving Consumer Goods (FMCG) major Godrej Consumers has introduced ‘Godrej Fab’, a liquid detergent, in the South Indian markets -- Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala. The product is launched at a disruptive price point of ₹99 for 100 ml.

Read more here.

The rupee rebounded by 13 paise to 83.27 against the US dollar in early trade on Thursday after the greenback weakened in the overseas markets as the US Federal Reserve signalled a cut in interest rates next year.

Read more here.

Cosmo Films has recently launched Metalised Electrical grade BOPP films for Capacitor application. The company had said in its statement that these films are used for Capacitor manufacturing of various types of AC and DC Capacitors. These Capacitors have diverse application ranging from Electronics appliances, Industrial applications, Power Electronics, Automobile, Electric Vehicles, Renewable Power systems, etc. These metalised capacitor grade films will be manufactured under clean room conditions with micro slitting capability and thickness ranging from 2.5 micron to 12 micron, it added.

The stock rose 2.55% on the NSE, trading at ₹628.50.

Sharekhan Stock Update- 3R Recommendation

Rating:BUY

(CMP: 338, Price Target: 390)

Company Description

TPCL is India’s largest integrated private power company present in power generation (capacity of 14,381 MW with 62% from thermal and 38% from renewables), transmission, distribution (largest private sector player with a customer 

base of 12.4 million), trading and solar EPC (largest solar EPC player in India).

Key Investment Arguments

• The power sector is expected to grow strongly on peak power demand-supply shortfall over for next few years; government has set ambitious target of 80 GW of new thermal power and 321 GW of new renewable power (RE) capacities by 2031-32. 

• Tata Power plans to install ~1.5-2 GW of renewable energy every year with a target to increase its renewable power portfolio to 70% of total portfolio by 2030. 

• Company has set an aggressive growth target for next 3 years with Revenue/EBITDA/PAT expected to double by FY27 with ~90% of PAT coming from core business (versus 40% in FY23) by FY27E. 

• TPCL’s focus on high-growth RE business and entry into power transmission would play a crucial role for sustained earnings growth and improved earnings quality. Hence, we maintain a Buy on TPCL with a revised PT of Rs. 390. At the CMP, the stock trades at 2.8x/2.4x its FY2025E/FY2026E P/BV.

Paisalo Digital: Promoter group Equilibrated Venture CFLOW bought 9.99 lakh shares on Dec. 13. 

Usha Martin: Promoter group Neutral Publishing House sold 64,550 shares on Dec. 12. Promoter group Usha Martin Ventures sold 1.06 lakh shares between Dec. 11 and 12.

NBCC (India) stock trades at ₹83.20 on the NSE, up by 3.74% after the stock hit 52-week high at ₹84.75 today. The company had received order from NCDC statutory Corporation under the Ministry of Cooperation/ Primary Agriculture Cooperative Society (PACS) in various States, worth ₹1,500 crore.

Route – Tender 

Buyback Price: 850/- 

Current Market Price: 760/-

Market Cap: Rs 3,228 crores 

Buyback Size: ₹125 Crs (Representing 15.18 % and 15.17 % of the aggregate of the Company’s fully paid-up equity capital and free reserves) 

Buyback Size: 14,70,588 shares (Representing 3.46 % of O/s. shares) 

Retail Quota: 2,20,588 Shares\ 

Last Cum Trading Date – 14 December 2023 (Today)

Ex-Date – 15 December 2023

Buyback Record Date: 15 December 2023

Buyback Schedule: Not Yet Announced

Route – Tender 

Buyback Price: 550/- 

Current Market Price: 461.75 / 

Market Cap: Rs 6,729 crores 

Buyback Size: ₹90.00 Crs (representing 9.87% and 4.04% of the aggregate of the Company’s fully paid-up equity capital and free reserves)

Buyback Size: 16,36,363 shares (representing 1.12% of O/s. shares)

Retail Quota: 2,45,454 Shares

Entitlement:

General Category - 2 Equity Shares for every 207 Equity Shares held on the Record Date

Retail Category - 13 Equity Share for every 97 Equity Shares held on the Record Date\u0009

Buyback Record Date: 12 December 2023

Tender Period:

Start Date - 18 December 2023

Close Date - 22 December 2023

Obligation Date - 29 December 2023

Settlement Date - 01 January 2024

Mohit Ralhan - CEO, TIW Capital on US Feds keeping Interest rates unchanged

While the Fed decided to keep rates on hold, it did little to push back on the aggressive rate cut pricing by the market participants. Median dot plot for 2024 end showed Fed Funds rate at 4.6%, which was 50 bps lower compared to September projections. The Fed Chair even alluded to the members’ having a discussion on rate cuts.

The Fed has achieved considerable progress in bringing down inflation without causing serious economic damage. However, there is still room for improvement as core inflation is running above 3%, much above the central bank’s target. Wage growth is also higher than what is consistent with the inflation target. This means that possibility of further tightening is still not completely off the table, but the chances are low. Given the lags with which monetary policy transmission takes place, the FOMC wants to be ahead of the curve by taking into account the risks to growth from higher rates. As inflation heads lower, real rates could become too restrictive if the Fed does not calibrate policy.

Meeting outcome suggests that FOMC members will keenly monitor any deterioration in economic data or sentiment indicators besides inflation trajectory -- 

Prestige (4.38%); Brigade (3.46%); Sobha (3.20%); Phoenix Mills (3.05%); Godrej Properties (2.68%)

The ₹1,200-crore initial public offering of Doms Industries saw a robust response within a few hours of launch on Wednesday. At the end of the first day, the IPO was subscribed 5.7 times. The price band for the issue has been fixed at ₹750-790 a share. The IPO will close on Friday and the market lot is 18 shares.

The IPO received bids for 5.04 crore shares as against an issue size of 88.37 lakh shares.

The IPO, which will close on December 15, comprises a fresh issue of ₹350 crore and an offer for sale (OFS) of 1.07 crore shares. 

Major gainers on the NSE at 9:30 am:

HCL Tech (3.28%); Tech Mahindra (3.08%); LTIMindtree (2.88%); Infosys (2.35%); Wipro (2.31%)

Major losers:

Power Grid (-0.93%); Nestle India (-0.69%); Cipla (-0.49%); BPCL (-0.49%); Bajaj Auto (-0.31%)

The ₹1,200-crore initial public offering of India Shelter Finance Corporation was subscribed 1.48 times on the first day of bidding on December 13. The price band for the issue has been fixed at ₹469-493 a share. The market lot is 30 shares.

The public issue of cryogenic tank maker Inox India will open for public today and close on December 18. The price band of the issue is ₹627-660 and market lot is 22 shares.

The ₹1,459-crore IPO of Inox India is entirely an offer for the sale of 2.21 crore shares by its existing shareholders and promoters. Under the OFS, Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, Ishita Jain, Manju Jain, Lata Rungta, among others, will offload shares.

Castrol India collaborates with LCR Honda, Viacom18 and RACR to launch the initiative India’s ULTIMATE Motostar on MTV - A search for the nation’s finest moto racer.

Goa Carbon: CO says Supreme Court allowed state authorities to proceed with assessment of green cess, issue formal demand to Supreme Court directed CO shall pay only 50% of demand amount raised by state tax authorities. Says Supreme Court stayed payment of balance 50% of demand amount pending further order.

14th December: Jindal Saw, Jammu & Kashmir Bank, Anant Raj to consider Fund Raising

15th December: Akshar Spintex to consider Dividend, Bonus issue & Buyback; Anmol India, Orient Green Power Company, Spacenet Enterprises to consider Fund Raising

16th December: PCBL to consider Fund Raising

18th December: Sandur Manganese & Iron Ores, ShreeOswal Seeds And Chemicals to consider Bonus Issue; Highways Infrastructure Trust, Paramount Communications, JTL Industries , Vedanta to consider Fund Raising

20th December: Maagh Advertising And Marketing Services to consider Bonus Issue & Stock Split

21st December: Shreeji Translogistics to consider Bonus Issue

An early Christmas gift awaited markets as the US Federal Reserve struck the right chord with risk-driven investors following a seemingly dovish stance at its last monetary policy meeting in 2023. Following a series of rate hikes and a hawkish stance in the last 18 months, the central bank changed course as it indicated that three rate cuts looks a possibility in 2024 with further policy tightening out of context currently. We believe that the Fed has now acknowledged that previous rates hikes are working into the economy and a new challenge of managing a drastic slowdown or a probable recession awaits the central bank. Our sense is that 2024 would be a good year for riskier assets overall and would not be surprised to see other major global central banks following suit in the latter half of next year.

Manish Chowdhury, Head of Research, StoxBox

Adani Green Energy said that Adani Sau Urja (KA) Limited, a Wholly-owned subsidiary of the Company, has also incorporated its Wholly-owned subsidiary, namely, Adani Renewable Energy Fifty One Ltd on December 13.

Further, Adani Renewable Energy Holding Nine Limited, a Wholly-owned subsidiary of the Company, has incorporated its whollyowned subsidiary, namely, Adani Renewable Energy Fifty Five Ltd on December 13.

Adani Green Energy stock is up by 5.62% on the NSE, trading at ₹1,507.90.

Domestic benchmarks, the Sensex and Nifty, surged on Thursday following the US Federal Chief’s definitive statement on freezing interest rates. Analysts foresee continued consolidation and sector rotation. 

7The 30-share BSE Sensex initiated early trade with a climb of 656.45 points, reaching 70,241.05. Simultaneously, the NSE Nifty saw a gain of 181.40 points, reaching 21,107.75.

Among the Nifty constituents, Hindalco, Tech Mahindra, Adani Ports, Wipro, and HCL Tech experienced gains, while PowerGrid, Nestle India, Tata Consumer, Asian Paints, and Dr. Reddy’s were among the decliners.

Earlier, US markets were on fire, with the Dow Jones Industrial Average hitting an all-time high. Gift Nifty at 21,216 against the spot close of 21,033. Most Asian stocks are also on the up in early deals on Thursday, except Japan markets.

Fed chair Powell signalled that the central bank was done with rate hikes and will start cutting rates next year. Importantly, the dot plot was revised to signal an easing of 75 bps (rates at 4.5-4.75%) in 2024 and 3.5-3.75 in 2025. This took treasury yields sharply lower.

Ajit Mishra, SVP, Technical Research, Religare Broking, said indications favour further consolidation in the index, but the bias would remain positive. “Participants should maintain their focus on stock selection and overnight risk management. We feel the performance of the US markets would play a critical role in setting the next leg of the directional move so keep a close eye on them for cues,” he added.

Nitin Rao, CEO, InCred Wealth, said: While the Sensex reaching 70,000 is a significant milestone, it’s important to remember that investing is a long-term journey. “Current valuations are reasonable, supported by strong economic fundamentals and a positive market sentiment. This suggests that markets are likely to continue trending upward alongside economic growth,” he said.

Crude oil futures traded higher on Thursday morning following the US Federal Reserve’s indicatins to cut interest rates in 2024. Added to this, official data from the US also showed a decline in the crude oil inventories in that country. At 9.13 am on Thursday, February Brent oil futures were at $74.49, up by 0.31 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $69.59, up by 0.17 per cent. December crude oil futures were trading at ₹5801 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹5781, up by 0.35 per cent; and January futures were trading at ₹5847 as against the previous close of ₹5824, up by 0.39 per cent.

Yes Bank informed the exchanges that RBI had imposed a monetary penalty of ₹10,000 on the Bank for non-compliance with RBI requirement of exchange of mutilated notes.

Madhavi Arora, Emkay Global Financial 

The market has been looking for a dovish pivot from the Fed, and yesterday it got that. The FOMC statement eased back the language on further hikes, the dots now show three cuts next year, and the post-meeting statement now acknowledges inflation has eased. Chair Powell’s comments at the presser supported this dovish turn, stressing progress on inflation and labor market balance. While he maintained that the Committee is not yet convinced it is done, he conceded that the conversation will soon transition to discussing less restrictive policy. When asked in the presser, Powell did not indicate concern with easing financial conditions or sticky services inflation.

■ The 50bps downward revision in 2024 dot plot vs Sep’23 was led by revised economic projections, which indicate a large majority of the Committee is comfortable with multiple cuts next year even though growth is expected to be only modestly below trend. The 2025 median dot also took out a hike.

■ Inflation risks are still seen as skewed to the upside, though by the lowest since early ’21. Core PCE inflation for this year was revised down 0.5pp to 3.2% and for next year down 0.2pp to 2.4%. The GDP projections were upgraded for this year, though expected to moderate to 1.4% next year. That said, when seen in the light of what was expected last December, the actual and Fed’s expected outcome for end-2023 is remarkable – a higher-than- expected GDP, and lower unemployment and yet lower-than-initially-projected core inflation (see table 1).

■ Powell ensured to express his satisfaction with the “progress” on the immaculate disinflation – the word made repeated mentions, though he mentioned that it was too soon to declare victory. More dovishly, in his presser he acknowledged that the FOMC is already talking about “dialing back the amount of policy restraint in place.”

■ Consequent to the dovish outturn, USTs staged an enormous bull-steepening, with 2Y USTs rallying by 30bps - the largest since March, while the 10Y also fell by 18bps to close just above 4%. Deeper rate cut pricing also drove USD weaker.

■ Market pricing for near-term cuts has moved up materially post FOMC, with markets frontloading rate cuts into early 2024. We do not necessarily agree with the current aggressive pricing. However, if “totality” of data continues to cool and support their narrative, we think the Fed could fairly soon start laying the groundwork for normalization to begin early 2H24.

The BSE Sensex and NSE Nifty are projected to open higher on December 14, tracking rises of more than 1% in the GIFT Nifty. The GIFT Nifty rose more over 200 points in the morning following a US Fed commentary that anticipated rate cut in 2024, supported by lowering inflation.

Nifty can find support at 20,900 after a gap up opening, followed by 20,850 and 20,800. On the higher side, 21,020 can be an immediate resistance, followed by 21,100 and 21,150.

The charts of Bank Nifty indicate that it may get support at 47,000, followed by 46,900 and 46,800. If the index advances, 47,320 would be the initial key resistance level to watch out for, followed by 47,500 and 47,800.

Foreign institutional investors (FIIs) net bought shares worth Rs 4,711 crore, while domestic institutional investors (DIIs) offloaded Rs 958 crore worth of stocks on December 13, provisional data from the National Stock Exchange (NSE) showed.

The Fed’s remark yesterday indicated that rates will be decreased in 2024. This upbeat speech pushed the US market higher, with the Dow up over 500 points and the S&P 500 up 1.21 percent. This global positive cue, combined with robust FII purchasing in the Indian market, will drive the Nifty to new highs, and we urge traders and investors to maintain their long positions with a trailing stop loss of 20850.

Options trading in energy products at the NSE provides market participants with a strategic approach to navigate the complexities of commodities like crude oil and natural gas. These standardised contracts come with specific terms, including contract size, expiration dates, and strike prices. Traders can choose between call options, allowing them to buy the underlying asset at a predetermined price if they anticipate price increases, and put options, affording the right to sell at a specified price if they expect a decline. The flexibility of options caters to diverse strategies, serving both hedging needs for energy producers and consumers and speculative interests for traders and investors. The risk management aspect, with limited risk for option buyers, adds an element of control in an otherwise volatile market. Liquidity, driven by various market participants, further enhances the efficiency of the options market, contributing to a dynamic and accessible trading environment for investors in energy derivatives at the NSE.

Ease My Trip has announced that its board approved change in designation of Prashant Pitti to managing director of the Company, with effect from 11th December, 2023

Silver prices advanced as the dollar index dropped below 103, reaching its lowest point in over a week. This movement followed the Federal Reserve’s decision to keep interest rates unchanged, in line with expectations, and the signaling of a potential 75 basis points (bps) of rate cuts for the next year—exceeding initial investor expectations. Bets for an interest rate cut in March escalated to 62%. While Chair Powell stated that further interest rate hikes are unlikely, participants were hesitant to entirely rule out the possibility of future increases, maintaining a cautious outlook. The dynamic interplay between the Fed’s decisions and market expectations continues to influence silver prices.

Investors now closely watch the decisions of the European Central Bank (ECB) and Bank of England (BoE).

The ECB is anticipated to lower its growth and inflation forecasts, while the BoE is expected to maintain a hawkish stance by keeping interest rates unchanged at 5.25%.

Gold prices surged to a one-week high following the U.S. Federal Reserve’s indication of concluding its tightening cycle and forecasting reduced borrowing costs in 2024. This prompted a decline in the dollar and bond yields. Fed Chair Jerome Powell asserted the likelihood of the central bank ceasing interest rate hikes, though he maintained the option to act if necessary. Reflecting positive sentiment, SPDR Gold Trust reported a 0.26% increase in holdings to 877.96 metric tons on Wednesday from 875.65 tonnes.

Investors now closely watch the decisions of the European Central Bank (ECB) and Bank of England (BoE).* The ECB is anticipated to lower its growth and inflation forecasts, while the BoE is expected to maintain a hawkish stance by keeping interest rates unchanged at 5.25%.

The Federal Reserve kept the funds rate steady at a 22-year high of 5.25%-5.5% for a third consecutive meeting today, but indicated three quarter percentage point cuts in 2024 in the “dot plot” projections. Eight Fed officials anticipate fewer than three quarter-point cuts next year, while five projected more.

World coffee production will likely rise by 5.8 per cent to 178 million bags (of 60-kg each) in the coffee year 2023-24 from 168.2 million bags, on rising output in South America and Africa, the International Coffee Organisation (ICO) said.

In its outlook for 2023-24, ICO also said the world coffee consumption would rise by 2.2 per cent to 177 million bags from 173.1 million bags in 2022-23, on rising demand from the non-producing countries.

Bengaluru-based Denta Water and Infra Solutions Ltd has filed its draft red herring prospectus with Securities and Exchange Board of India to raise funds through initial public offering (IPO).

The public offer from a water engineering, procurement, and construction services provider is entirely a fresh issue of up to 75 lakh shares.

For the ₹30,000-crore group, founded by RS Agarwal and RS Goenka in 1974, the focus areas will remain personal care products, healthcare products and food business

Most investors are constructive on cement demand, and investors are selective about stock picking in the cement space given the rising supply. UltraTech is top consensus pick. Other two stocks of interest on positive side were Dalmia & Ambuja.

HSBC on ITC: Maintain Buy on Company, raise target price at Rs 490/sh (Positive) 

Citi on Cement Sector: UltraTech is the consensus top pick of investor. Positive on Ambuja and Dalmia (Positive) 

Investec on HDFC Life: Maintain Buy on Company, raise target price at Rs 825/sh (Positive) 

Investec on SBI Life: Maintain Buy on Company, raise target price at Rs 1700/sh (Positive) 

Investec on Max Life: Maintain Buy on Company, raise target price at Rs 1350/sh (Positive) 

Investec on LIC: Downgrade to Hold on Company, raise target price at Rs 875/sh (Neutral) 

MOSL on VMart: Maintain Buy on Company, target price at Rs 1800/sh (Neutral) 

MOSL on Indigo: Maintain Neutral on Company, target price at Rs 2800/sh (Neutral) 

JP Morgan on Honasa Consumer: Maintain Neutral on Company, target price at Rs 425/sh (Neutral)

Domestic markets are likely to surge on Thursday, thanks to the US Federal Chief’s categorical statement that there will be no more hikes in interest rates. Analysts expect the consolidation phase to continue and sector rotation.

US markets were on fire, with the Dow Jones Industrial Average hitting an all-time high. Gift Nifty at 21,216 against the spot close of 21,033. Most Asian stocks are also on the up in early deals on Thursday, except Japan markets.

Foreign portfolio investors (FPIs) have invested ₹8,567 crore in initial public offerings (IPOs) this year, compared with ₹6,381 crore put in by mutual funds, ₹1,947 crore by insurance companies, and ₹795 crore by alternative investment funds (AIFs).

Mutual funds, however, have invested more than FPIs as anchor investors for the second year in a row. ICICI Prudential MF, Nippon India MF, and HDFC MF are the top MF anchor investors, having put in over ₹1,700 crore this year. Goldman Sachs, Ashoka, and the Government of Singapore are the top three anchor investors among FPIs, with investments of over ₹300 crore each.

PLNG’s Rs207bn petchem foray is difficult to quantify in terms of value add, but we do not foresee a washout and believe the stock is investible, going by its valuations and balance sheet. Sector outlook too is stable, with LNG prices under control. Renewal of the QatarGas deal (likely within 1-3 months) is a key event, as a 15-20-year extension would give long-term earnings visibility on core business, and factors like annual escalation in regas charge continuing are likely to be a significant trigger. In our SA model, we assume avg. core capex of Rs15bnpa and equity investment of Rs52bn in petchem, with nil contribution from the latter and Gopalpur; but even assuming full petchem capex in SA and Rs60bn from a land-based unit in Gopalpur, debt/equity would stay under 1x and even 70% DPR be maintainable. We cut TP by ~8% to Rs245; retain BUY.

• BALRAMCHIN 

• DELTACORP 

• HINDCOPPER 

• IBULHSGFIN

• INDIACEM 

• NATIONALUM 

• ZEEL

Buzzing Stocks: Fusion Micro Finance, Escorts Kubota, Suntech Realty, Symphony, Hindustan Unilever, IG Petrochemicals, Crompton Greaves Consumer, Butterfly Gandhimathi, JSW Energy, Biocon, NBCC

Getting ready for India? GMR, getting India ready’ – investors from 2007 will remember this famous advertising slogan, a time when GMR Airports Infrastructure (formerly GMR Infrastructure) was a poster child of that bull market. While the company has come to the spotlight after a long lull, following GQG Partners buying a stake in the company last week, back then, the company was hardly out of the spotlight.

Affordable and low-ticket housing loans are showing signs of an increase in early-stage delinquencies, given that low-income borrowers’ repayment capability has been impacted due to weaker rural growth and a fall in households’ savings.

“There was a payment shock due to the rising interest rate cycle and multiple increases in interest rates, because of which some affordable segment players are now operating at upwards of 13–14 per cent. There has also been a drop in the savings rate compounded by the noise on small-ticket unsecured loan exposure. All of this has reduced the capacity and capability of servicing debt for the below ₹30 lakh loan segment,” said Kanika Singh, Chief Risk Officer, India Mortgage Guarantee Corporation (IMGC).

The short-term outlook is bullish for VIP Industries. The stock surged over 6 per cent on Wednesday. The price action since October indicates a double-bottom formation. This strengthens the bullish case.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

Jabil Inc. (Pre market) (Sector- Technology) 

Costco Wholesale Corporation (Post market) (Sector- Retail) 

Lennar Corporation (Post market) (Sector- Construction)

Aegon Ltd. (Tent) (Sector- Financial)

12:00 INDIA WPI Inflation y/y (Expected: -% versus Previous: -0.52%)

17:30 U.K Official Bank Rate (Expected: 5.25% versus Previous: 5.25%)

18:45 EURO Main Refinancing Rate (Expected: 4.5% versus Previous: 4.5%)

19:00 U.S. Retail Sales m/m (Expected: -0.1% versus Previous: -0.1%)

19.00 U.S. Unemployment Claims (Expected: 219K versus Previous: 220K)

19:15 EURO ECB Press Conference

🔸 Fed Officials See Lower Inflation, Slower GDP Growth in 2024

🔸 Fed Officials See 0.75 Pct-Point Rate Cuts in 2024

🔸 Fed Officials See Additional Rate Cuts in 2025, 2026

DOMS Industries: Santosh Rasiklal Raveshia, MD

Total Capex Close To ?450 Cr, Will Focus On Domestic Market To Drive Sales: Doms Industries

https://www.youtube.com/watch?v=m7GoMENvSr0

Fedbank: Anil Kothuri, MD CEO

Small Mortgage Business Will Continue To See Growth Momentum: Fedbank Financial Services

https://www.youtube.com/watch?v=7-SqIKOSNyY

Inox India Ltd: Siddharth Jain, Promoter & Non Executive

INOX India IPO: Price Band Fixed At ?627-660

https://www.youtube.com/watch?v=zpLBRu1FIxw

Manappuram Fin: VP Nandakumar, MD&CEO

50% Gold Loans & 50% Of Non-Gold Loans Is The Ideal Mix: Manappuram Finance

https://www.youtube.com/watch?v=GdI2LJdwZn4

Muthoot Microfin Limited: Sadaf Sayeed, CEO

Muthoot Microfin IPO To Open On Dec 18

https://www.youtube.com/watch?v=dXXolpbAAg0

Nuvama Wealth M: Shiv Sehgal, President

Domestic Flows Are Strong And Could See A Ramp-up In The Year-End Rally: Nuvama

https://www.youtube.com/watch?v=0vt88xQHhGQ

PI Industries: Rajnish Sarna, Joint MD

Huge Headroom For Growth In Pyroxasulfone Market, Expect 18-20% Growth In FY24 : PI Industries

https://www.youtube.com/watch?v=Stj_io84qq8

PI Industries: Rajnish Sarna, Joint MD

‘We Are Not A One Molecule Company; Export Over 25 Products’: Rajnish Sarna Of PI Inds

https://www.youtube.com/watch?v=4mIUuDXgjKc

SpiceJet: Ajay Singh, CMD

SpiceJet CMD Ajay Singh

https://twitter.com/etnowlive/status/1734859430339203296?s=48&t=v93OK0uc4_THpPO_aS8n7w

Spandana Sphoor: Shalabh Saxena, MD CEO

Intend To Take Banks’ Share Of Funds From 50% To About 70%: Spandana Sphoorty

https://www.youtube.com/watch?v=jd_L8qxznmI

Events today…

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Asian markets lift off on Thursday barring Japanese stocks, fuelled by the dovish tilt from the Federal Reserve’s final policy meeting of the year which lifted Wall Street - the Dow surged to a fresh all-time high - and slammed Treasury yields and the dollar. 

Japanese indicies lead by Nikkei 225 fell 0.53% or 175.51 points to 32,750.84 while the broader TOPIX dropped 1.03% or 24.22 points to 2330.70. South Korea’s KOSPI surged 1.51% or 37.92 points to 2,548.58 while Australia’s S&P/ASX 200 surged 1.57% or 113.60 points to trade at 7,371.40.

The Federal Reserve maintained the current interest rates of at 5.25% to 5.50% unchanged for the third consecutive meeting, aligning with widespread predictions.

Seventeen out of nineteen Federal Reserve officials forecast a lower policy rate by the conclusion of 2024 compared to the present, with the median projection indicating a decrease of three-quarters of a percentage point from the existing 5.25%-5.50%.

Fed Chair Jerome Powell indicated that the central bank probably completed its series of interest rate hikes but didn’t dismiss the possibility of further action if necessary.

Gold prices extended gains to a one-week high on Thursday after the U.S. Federal Reserve flagged an end to its tightening cycle and signalled lower borrowing costs in 2024, sending the dollar and bond yields lower.

FUNDAMENTALS

Spot gold was up 0.5% at $2,036.99 per ounce, after rising 2.4% on Wednesday. U.S. gold futures jumped 2.7% to $2,051.10. - Reuters

The Dow Jones industrial average hit its first record closing high since January 2022 and the S&P 500 and Nasdaq ended sharply higher on Wednesday after the Federal Reserve signalled that its interest rate-hiking policy of the last two years is at an end and that it sees lower borrowing costs in 2024.

In its policy statement, the Fed also left interest rates steady, as expected, and a near-unanimous 17 of 19 Fed officials projected that the policy rate will be lower by the end of 2024.

The Dow Jones Industrial Average rose 512.3 points, or 1.4%, to 37,090.24, the S&P 500 gained 63.39 points, or 1.37%, at 4,707.09 and the Nasdaq Composite added 200.57 points, or 1.38%, at 14,733.96. - Reuters