The Indian benchmark indices extended their gaining streak for the seventh consecutive session on Wednesday, with the BSE Sensex and NSE Nifty ending at fresh record highs for the third straight session. However, the domestic bourses are likely to see a gap-down opening on December 7, with the Sensex and Nifty50 likely to snap seven-session gaining streak today amid weak global cues and negative trend at Gift Nifty.
Gift Nifty was trading at 21,036 levels, down 0.3%, as compared to Nifty futures’ previous close of 21,097, signaling a gap down opening on Dalal Street.
On December 6, the BSE Sensex closed 358 points, or 0.52%, higher at 69,654 mark, and the Nifty added 83 points, or 0.40%, to settle at 20,938, with both settling at new all-time high closing levels. During the session, the 30-share Sensex touched a fresh record high of 69,745 and the Nifty50 hit 20,962 levels.
Key triggers for the stock market today:
Weak global cues
Asian markets were trading lower following a negative closing on Wall Street in overnight trade as investors weighed fresh U.S. employment data. Japan’s Nikkei 225 dropped 1.7%, while South Korea’s Kospi declined 0.3%. Hong Kong’s Hang Seng index dipped 1.6, while China’s Shanghai Composite was down 0.45%. Australia’s S&P ASX 200 index was also under stress, down 0.4%.
In the U.S. market, the indices ended lower on Wednesday as sentiment was dented by drop in private payrolls jobs in November which raised fresh fear that the Federal Reserve could start cutting interest rates early next year. The private payrolls increased by 103,000 jobs in November, as per the ADP National Employment report, which was below economists' expectation of 130,000, indicating cooling jobs market. The Dow Jones Industrial Average fell 0.19%, while the S&P 500 shed 0.39%. The Nasdaq Composite also ended in red, down 0.58%.
Oil prices rebound
Crude oil prices rise marginally on Thursday after dropping for five days on high U.S. crude output and gasoline inventories.
Brent crude futures rose 0.43% to $74.62 a barrel, while the US West Texas Intermediate (WTI) crude futures increased 0.48% to $69.71.
USD-INR
The rupee settled 5 paise higher against the U.S. dollar on Wednesday, tracking positive trends in domestic equities and sustained foreign fund inflows. The local currency ended at 83.33 per dollar as compared to the previous close of 83.38.
RBI policy meeting
The central bank of India began its three-day policy meeting on December 6 and the Monetary Policy Committee (MPC) will announce policy decisions on December 8. The RBI Governor Shaktikanta Das-led six-member MPC is widely expected to keep the benchmark interest rates unchanged in the fourth meeting for fiscal 2023-24, and the last meeting of the calendar year 2023. The RBI has kept the repo rate unchanged at 6.5% since February this year.
FII activity
Foreign institutional investors (FIIs) turned net sellers in equity market on Wednesday, while the domestic institutional investors (DIIs) were net buyers.
As per the NSE data, FIIs sold equities worth ₹11,916.30 crore and purchased stocks for ₹11,836.42 crore, resulting in fund outflows of ₹79.88 crore.
On the other hand, domestic institutional investors (DIIs) purchased stocks worth ₹12,323.18 crore and pared equities worth ₹10,951.00 crore, resulting in an inflow of ₹1,372.18 crore.
Stocks to watch today
Dr. Reddy’s Laboratories: The pharma major and Coya Therapeutics, Inc have signed a development and license agreement for the development and commercialisation of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis (ALS).
IDFC First Bank: U.S. private equity giant Warburg Pincus is reportedly planning to sell a 1.3% stake in IDFC First Bank through its affiliate, Cloverdell Investment, via a block deal for $100 million at ₹85.7 per share.
Bharti Airtel: Warburg Pincus also looks to sell 17.5 million shares through a block deal at a floor price of ₹1,005 per share. The U.S. private equity giant looks to raise $211 million via stake sale in telecom major.
IRCON: The government plans to offload up to 8% stake in the state-owned company through an offer for sale beginning today, which will help the exchequer raise around ₹1,100 crore.
Mahindra & Mahindra: The auto major on Wednesday said it will hike prices of its passenger and commercial vehicle model range from January next year in the backdrop of rising input costs.
Adani stocks: The power-to-port conglomerate plans to invest $75 billion on energy transition initiatives through Adani Green Energy Limited (AGEL) by 2030, its chairman Gautam Adani said on Wednesday. The investment is part of the group’s vision to develop 45 gigawatt of renewable energy capacity by 2030.
PNB Housing Finance: The state-owned housing finance company announced a significant milestone in its affordable housing segment Roshni by hitting ₹1,000 crore loan book in less than a year of its launch.
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