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Weekly Market Review
The Indian markets erased all the last four weeks’ gains and posted the biggest weekly fall in more than 2 years. The benchmark indices ended in red for all the trading sessions of the week amid a global sell-off after the US Fed’s cautious stance on the pace of future rate cuts, which led to huge FIIs selling.
This week, BSE Sensex shed 4,091.53 points or 4.98 percent to close at 78,041.59, while the Nifty50 index fell 1,180.8 points or 4.76 percent to finish at 23,587.50.
The BSE Large-cap Index shed 5 percent while BSE Mid-cap Index was down more than 3 percent and the BSE Small-cap index was down 3 percent.
All the sectoral indices ended in the red with the BSE Power and Metal indices shedding nearly 7 percent each, the BSE Capital Goods index down 6 percent, BSE Telecom index slipped 5.7 percent.
Tata Consultancy Services lost most of its market value, followed by Reliance Industries, HDFC Bank, and Bharti Airtel. On the other hand, Sun Pharmaceutical Industries, IndusInd Bank, and ITC added most of their market cap.
During the week, Foreign Institutional Investors (FIIs) sold equities worth Rs 15,828.11 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 11,873.92 crore.
The Indian rupee touched a fresh record low of 85.10 during the week ended December 20.
ECONOMY
India’s forex reserves dip to nearly six-month low
India’s foreign exchange reserves fell by nearly $2 billion to an almost six-month low of $652.87 billion as of Dec. 13, data from the Reserve Bank of India (RBI) showed on Friday.
The reserves had declined by $3.2 billion in the week of Dec. 6, and have declined by $52 billion from the record high of $704.89 billion hit on Sept. 27.
Centre must push states to comply with renewable purchase obligations, says industry
Vineet Mittal, chairman and founder of Avaada Group, which aims to have a renewable capacity portfolio of 30 GW by 2030, said India currently has unsigned PPAs and PSAs to the tune of 48,000 MW (48 GW).
“One of the biggest challenges is that of unsigned PPAs and PSAs, without which all the investments by RE developers would remain only in theory. The Centre must push the states for strict compliance to renewable purchase obligations (RPOs), which would compel discoms to buy green power and thus, sign PPAs,” he said.
STOCKS IN NEWS
Siemens: Shares of Siemens were sharply lower by over 9% in mid-day trade, after analysts were disappointed by the fine print of the investor call that the company hosted on December 20, which alluded to a stagnant private capex, and concerns regarding the supply chain for digital industries. In the call with analysts, the company confirmed that the ‘private capex has not picked up meaningfully’, souring the sentiment for the share price. However, private capex in semiconductors, batteries, solar PVs, and the electric vehicles space has been good, the company added.
NTBCL: Shares of NTBCL ended sharply lower by 5 percent after the Supreme Court said awarding a contract to private firm Noida Toll Bridge Company Ltd (NTBCL) to collect tolls from vehicles plying on the Delhi-Noida DND flyway is unjust. The apex court pulled up NOIDA authority for delegating toll collection to private firm NTBCL, saying it has resulted in unjust enrichment.
Mazagon Dock Shipbuilders: Shares of the defence company ended over 6 percent lower as investors rushed to take profits off the counter after its recent surge. The stock has gained over 17 per cent in the past month, which gave investors more leeway to take home partial profits.
Gravita India: Shares slipped over 3 per cent after the firm’s board of directors approved a Qualified Institutions Placement (QIP) to raise to Rs 1,000 crore. The board approved the issue price for 47,70,537 equity shares at Rs 2,096.20 per share, including a premium of Rs 2,094.20. This price reflects a Rs 110.29 discount (5 percent) on the floor price of Rs 2,206.49, as permitted under SEBI regulations.
Brainbees Solutions: FirstCry operator Brainbees Solutions Ltd. gained 3 percent in the morning session as domestic brokerage JM Financial kicked off coverage on the stock with a bullish ‘buy’ tag, seeing a target price of Rs 692. The price target implies an upside potential of 14 percent from the previous session’s closing price.