03 Dec , 2024 By : Debdeep Gupta
Benchmark indices Nifty and Sensex opened the session on a decent note, albeit marginally higher and extending gains for a third trading session in a row after metal and PSU bank stocks helped bolster sentiment in the market. US markets also helped lift sentiment where Nasdaq and S&P 500 posted record closing highs led by a sharp rally in technology stocks.
This week, markets will also be taking cues from RBI's MPC meeting scheduled for December 4. A poll of analysts and fund managers suggests that the central bank will likely keep interest rates unchanged.
At about 9:40 am, the Sensex was up 100.10 points or 0.12 percent at 80,348.18, and the Nifty was up 33.00 points or 0.14 percent at 24,309.05. About 2,315 shares advanced, 680 shares declined, and 106 shares unchanged.
"The market's undertone remains positive, as there are no immediate negative triggers and weak GDP figures were already priced in," said Ajit Mishra, Senior Vice President at Religare Broking, in a conversation with Moneycontrol. He noted that investors are now eyeing government support through capital expenditure, which could further bolster sentiment. The central bank could cut CRR which could boost liquidity While the pace of FII selling may ease by mid-December, Mishra expects it to continue until early 2025.
To be sure, foreign institutional investors (FIIs) sold Rs 239 crore to kickstart December while domestic institutional investors mopped up Rs 3,588 crore.
Tobacco major ITC tanked 3 percent after the Group of Ministers on GST rate rationalization recommended raising tax on aerated beverages, cigarettes, tobacco, and related 'sin' products to 35 percent from the current 28 percent, CNBC-Awaaz along with PTI News said quoting sources familiar with the development. Pepsi bottler Varun Beverages opened 5 percent lower in today's session.
Newly-listed food delivery major Swiggy rallied 4 percent ahead of its Q2 earnings, the first since its debut last month. Prosus, one of the company’s largest shareholders, said in its half-yearly disclosures that Swiggy has reported a revenue of $750 million (around Rs 6,300 crore) in the first half of the financial year 2025 (H1FY25), up 40 percent from $536 million (about Rs 4,500 crore) recorded during the same period last year.
KPI Green Energy shares rallied over 3 percent after receiving its largest order worth Rs 1,311 crore from Coal India. The company is going to set up a 300 MWAC (405 MWDC) ground-mounted Solar PV plant including Operation & Maintenance (O&M) services on a comprehensive basis for five years on an engineering, procurement, and construction basis in Gujarat.
The mid-small cap indices outperformed the frontline indices with gains of 0.6 and 0.5 percent, respectively. Market experts suggest that BSE Small-Cap and Mid-Cap have seen a decent correction in the past two months and could likely see renewed buying interest in the coming weeks. Smallcap stocks saw a strong rally on Tuesday, with 750 BSE Smallcap stocks trading in the positive, while 173 stocks declined. Midcap stocks also witnessed a similar trend as 100 shares rose, while just 29 traded in the negative.
Nifty Bank, PSU Bank, Realty, and Metal Index rallied the most, rising 1 percent each. Gains in major banking names such as SBI, HDFC Bank, IndusInd Bank, and Shriram Finance lifted the index. The Realty index, up over 3 percent in a week, traded higher led by majors like Godrej Properties, Prestige, and Oberoi Realty.
"Immediate support is placed at 24,000 and 23,900, historically strong reversal zones that may present buying opportunities if confirmed by favorable price action. On the upside, 24,350 serves as the first hurdle. A decisive breakout above this level could drive the index toward the next resistance targets at 24,800 and 25,000, unlocking significant upside potential," Mandar Bhojane of Choice Broking said. "Traders are advised to adopt a cautious stance and wait for confirmation of price action at key support and resistance levels before initiating fresh positions," he added.
Adani Ports, Shriram Finance, SBI, HDFC Bank, and Adani Enterprises were the top gainers on the Nifty. ITC, Bharti Airtel, Sun Pharma, Trent, and M&M were the key laggards.
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