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Dalal Street ended higher as foreign institutional investors turned net buyers during the week and strong economic data boosted investors’ sentiments. For the week, the Sensex soared 2.29% to 67,481.19 and the Nifty 50 index advanced 2.39% to 20,267.90.
In broader markets, the BSE Midcap index jumped 2.9% to close at 34,586.76 and the BSE Smallcap index rose 1.91% to 40,565.96.
During the week, FIIs were net buyers for Rs 10,593.19 crore, while DIIs were net buyers for Rs 4353.55 crore in the cash segment.
All Nifty sectoral indices closed in the green. Top gainers among Nifty sectoral indices were Oil & Gas [4.38%], PSU Bank [3.16%], Media [3.16%], Metal [3.09%], and Realty [2.86%].
The Indian rupee jumped 11 paise to 83.29 against the US dollar on Friday.
Company News
Adani Group: Shares of Adani Group stock soared on Tuesday after India’s apex court reserved its order to probe the companies based on a US short-seller’s allegations of accounting fraud and stock manipulation. Top gainers among Adani Group companies were Adani Total Gas [19.97%], Adani Green Energy surged [12.25%], Adani Power [12.34%], NDTV [12.12%], Adani Wilmar [9.94%], and Adani Enterprises [8.9%].
Maruti Suzuki India (MSI): India’s largest carmaker registered a 3.4% rise in total sales at 1,64,439 units in November 2023 as compared to 1,59,044 units in the same month last year. Total domestic sales stood at 1,41,489 units in November 2023, as against 1,39,306 units sold during the same period last year, up 1.57%, according to its regulatory filing. Exports rose to 22,950 units in the reported period as compared to 19,738 units in November 2022.
Reliance Industries Limited (RIL): French fashion group, SMCP, has entered the Indian market in partnership with Reliance Industries-owned Reliance Brands Limited (RBL). RBL will be the exclusive distributor for Sandro and Maje in the Indian market. The two brands will open their first stores in 2024.
Tata Technologies: The company made a stellar debut on the bourses. Shares of the company opened at Rs 1200 apiece on the NSE as against its issue price of Rs 500. The shares hit a high of Rs 1400 and closed at Rs 1313 apiece on the NSE.
Bharti Airtel: Bharti Telecom has acquired about 1.35% shares of Bharti Airtel from Indian Continent Investment Limited (ICIL) through block deal mechanism on National Stock Exchange of India Limited for an aggregate amount of Rs 8,301.73 crore. After the block deal, the revised shareholding of BTL and ICIL in Airtel is 39.59% and 4.56%, respectively.
Tata Motors: The auto major’s domestic and international sales for November 2023 stood at 74,172 vehicles, down 1.73% as compared to 75,478 units sold in November 2022. The company’s total domestic sales declined by 1% to 72,647 units sold in November 2023 as against 73,467 units sold in the same period last year. Total commercial vehicles sales was at 28,029 units in November 2023, recording a de-growth of 4% from 29,053 units in November 2022.
Bajaj Auto: The company said that it has sold 4,03,003 auto units in November, up 31% from 3,06,719 units sold in the same period last year. The company’s domestic sales jumped 69% to 2,57,744 units, while exports declined 6% YoY to 1,45,259 units in November 2023. Bajaj has sold 3,49,048 units of 2-wheelers (up 33% YoY) and 53,955 units of commercial vehicles (up 21% YoY) during the period under review.
Infosys: The IT major and Shell collaborate on immersion cooling services to enable sustainability-first data centers. Through this strategic engagement, Infosys and Shell will bring together their capabilities in Digital and Energy, respectively, and an eco-system of partners, to create an integrated offering for green data centers.
Larsen and Toubro (L&T): The company has incorporated a new wholly-owned subsidiary, L&T Semiconductor Technologies on November 29, 2023. The new company is formed for the purpose of engaging in the business of fabless semiconductor chip design and product ownership.
Hindustan Aeronautics (HAL): The state-owned aerospace and defence company has received the approval from the Defence Acquisition Council for the procurement of light combat helicopters for the Indian Air Force and Indian Army and light combat aircraft Mk 1A for the Indian Air Force.
Whirlpool of India: The company’s promoter, Whirlpool Corporation, plans to sell up to 24% stake in the company in 2024 through one or more transactions. It expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility.
Dixon: Padget Electronics Private Limited, wholly owned subsidiary of Dixon Technologies (India), inaugurated a new state of the art smartphone manufacturing plant in the Noida district, Uttar Pradesh. The latest manufacturing facility by Padget Electronics has commenced the production of smartphones for global technology giant – Xiaomi India in Q3 of 2023, the company said in an exchange filing. Shares ended 8% higher.
UltraTech Cement: The cement major has acquired a 0.54 mtpa cement grinding assets of Burnpur Cement, at Patratu in Jharkhand for Rs 169.79 crore. This investment marks the company’s entry in Jharkhand. The company’s capacity in India now stands at 133 mtpa.
Metro Brands and FSN E-Commerce Ventures (Nykaa): Foot Locker, the New York-based specialty athletic retailer, announced the signing of a long-term licensing agreement with Metro Brands Limited (MBL) and Nykaa Fashion. Under the terms of the agreements, MBL is granted exclusive rights to own and operate Foot Locker stores within India and to sell authorized merchandise in Foot Locker stores. Nykaa Fashion will serve as the exclusive e-commerce partner and operate Foot Locker’s India website and retail authorized merchandise on Foot Locker branded shop on Nykaa’s existing ecommerce platforms.
Canara Bank: The state-owned bank has received approval from the RBI for divesting 70% stake in its unlisted subsidiary Canbank Factors. Further, Canara Bank is holding 69.14 % shares in its unlisted subsidiary, Canbank Computer Services Ltd (CCSL), and proposes to buy shares of other shareholders i.e Bank of Baroda (BOB) and DBS Bank India Ltd (DBIL). Canara Bank is also exploring transferring the credit Card and other digital product portfolio of the Bank to CCSL, according to its exchange filing.
Bharat Heavy Electricals (BHEL): The company has signed a Memorandum of Cooperation with a French state-owned company, Electricité de France S.A., France, to explore the opportunity to maximise the local content of the Jaitapur nuclear power project to be established by NPCIL in India. The Ministry of Defence inked a contract with BHEL to procure 16 upgraded Super Rapid Gun Mounts and accessories worth Rs 2,956.89 crore for the Indian Navy.
Economy News
India’s July-September 2023 GDP growth stood at 7.6% compared with 6.2% in July-September 2022. The latest GDP growth reading is higher than the Reserve Bank of India (RBI) prediction of 6.5%. The surprise growth is expected to be on the back of strong domestic consumption and robust growth in the services sector, which contributes more than 50% to India’s economy.
Goods and Services Tax (GST) collections stood at Rs 1.68 trillion in November as festive demand lifted sales, but the reading was lower compared to October’s GST collection of Rs 1.72 trillion.
The S&P Global India Manufacturing Purchasing Managers’ index (PMI) rose to 56 in November 2023, compared to October’s eight-month low of 55.5. The manufacturing sector recorded strong performance in November, helped by easing price pressures and increased demand from clients.
India’s eight core sectors registered a growth of 12.1% in October 2023, according to government data. The September data was revised to 9.25 from 8.1% registered earlier. For April-October, the output of the eight core industries rose 8.6% year-on-year, up from 8.4% in the same period of FY23. The rise in core sector growth in October was due to higher production in cement and electricity sectors.
India’s fiscal deficit at the end of October touched 45% of the full-year budget estimate, according to data released by the Controller General of Accounts (CGA) during the week. In the corresponding period last year, the deficit was 45.6% of the budget estimates of FY23. The fiscal deficit, measured by the difference between expenditure and revenue, stood at Rs 8.03 lakh crore during the April-October period of 2023-24. For FY24, the country’s fiscal deficit is estimated to be Rs 17.86 lakh crore, representing 5.9% of the GDP.
Global Markets
The US markets closed higher during the week as inflation eased, the Fed signalled the end of hawkish monetary policy, and better-than-expected earnings. For the week, the Nasdaq closed 0.38% higher, the Dow Jones Industrial Average rose 2.42% and the S&P 500 index jumped 0.77%.
The US Gross Domestic Product (GDP) grew at an annual rate of 5.2% in the third quarter, according to the US Bureau of Economic Analysis’ (BEA). The reading came in above expectations of 5% and above the previous estimate of 4.9%. The rise was attributed to strong consumer spending, private inventory investment and higher exports.
Meanwhile, inflation in the US, measured by Personal Consumption Expenditures (PCE) Price index, was 3% year-on-year in October, the US Bureau of Economic Analysis report said. The reading was below 3.4% of the previous month. The annual Core PCE Price index rose 3.5% compared to 3.7% increase recorded in September. Further, Personal Spending increased by 0.2% on a monthly basis in October, while Personal Income also rose by 0.2%.
Japan’s stock markets declined during the week as investors booked profits after the strong rally in November. The Nikkei 225 index fell 0.6% and the broader Topix index dropped 0.4%.
The yield on the 10-year Japanese government bond fell to 0.71% from 0.77%. The Japanese yen strengthened to the high of 147 range against the US dollar from the prior week’s range of 149.
Chinese equities fell after data showed that the country’s economy was struggling to grow at a faster pace. The Shanghai Composite index gave up 0.31%, the blue-chip CSI 300 lost 1.56%, and the benchmark Hang Seng index fell 4.15%.
The official manufacturing Purchasing Managers’ index (PMI) fell to 49.4 in November from 49.5 in October. The non-manufacturing PMI slipped to a lower-than-expected reading of 50.2 from 50.6 in October. The private Caixin/S&P Global survey of manufacturing activity rose to 50.7 in November from 49.5 in October.
Profits at Chinese industrial firms increased by 2.7% in October compared to the same period last year but slowed from September’s 11.9% gain. During January-October of 2023, profits fell by 7.8% from a year ago.