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WEEKLY MARKET REVIEW
The bulls dominated Dalal Street on the third consecutive week, which ended December 6, as the benchmark indices posted the biggest weekly gains in the last six months amid positive global markets, falling crude oil prices, and an inline RBI policy announcement.
This week, BSE Sensex surged 1,906.33 points or 2.38 percent to end at 81,709.12, while the Nifty50 index added 546.7 points or 2.26 percent to close at 24,677.8.
The BSE Mid-cap Index added 3.5 percent, the BSE Small-cap index added 3.3 percent, and the BSE Large-cap Index jumped 2.4 percent.
On the sectoral front, Nifty Realty and PSU Bank indices added 5 percent each, Nifty Metal and Media added 4 percent each and Nifty IT index was up nearly 4 percent.
Tata Consultancy Services added the most of its market value, followed by HDFC Bank, Infosys, and Reliance Industries. On the other hand, Bharti Airtel, ITC, and Asian Paints lost most of their market cap.
Foreign Institutional Investors (FIIs) turned net buyers this week as they bought equities worth Rs 11,933.59 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 1,792.47 crore.
During the week, the Indian rupee touched a fresh record low of 84.73 and ended 20 paise lower at 84.69 per dollar on December 6 against the November 29 closing of 84.49.
Economy
CRR cut is the first step to monetary easing
Half-a-percentage point reduction in the cash reserve ratio will influence bond yields. The average repo rate over the last decade has been 6-6.5 percent. A new cycle could begin with cuts of 25-75 basis points, subject to the inflation trajectory.
The RBI has also raised the ceiling on interest rates on FCNR deposits. This is an interesting move for sure as it opens the door for more forex flows. But this will work in a big way provided banks increase their rates and customers find these rates attractive compared with other alternatives in their territories.
Q2 GDP is not systemic slowdown, more due to lack of capex, and public spending: FM Sitharaman
In her first remarks, Union finance minister Nirmala Sitharaman on December 6 said the sharp decline in the growth of gross domestic product (GDP) in the September quarter is “not systemic” and revealed that she expects it to pick up in the third quarter.
“Q2 GDP is not a systemic slowdown, it is more due to the absence of activity on capex and public spending. I expect Q3 to make up for all this,” the minister said during a conversation with 15th Finance Commission chairman N K Singh at the India-Japan Forum 2024.
STOCKS TODAY
Garden Reach Shipbuilders: Shares of Garden Reach Shipbuilders & Engineers surged 4 percent to Rs 1,828 per share on December 6 after the company signed an agreement for the construction and delivery of a second ship from a series of 4 additional 7,500 DWT multi-purpose vessels in Germany. So far this year, the stock of this shipbuilding company more-than-doubled or skyrocked over 100 percent, as compared to benchmark Nifty 50’s 12 percent rise. Earlier, Garden Reach shares had hit a 52-week high of Rs 2,834 per share on July 5, 2024.
Ceigall India: Shares of Ceigall India surged 4 percent after the company announced receiving an arbitration award worth Rs 54.21 crore in its favor in the Greater Mohali Area Development Authority (GMADA) case. The award comes under the Arbitration and Conciliation Act, of 1996. The dispute was related to the project titled “Construction of Service Road along with a 200′ wide road from Mullanpur/UT boundary up to the ‘T’ Junction of Kurali-Siswan road at SAS Nagar.”
BSE Ltd: Shares of BSE Ltd have been on a roll in recent days after surging over 19 percent in three straight sessions. The stellar upmove in the counter in recent sessions has been on the back of a surge in trading volumes. The spike in trading volumes in BSE’s counter can also be attributed to its entry into the Futures and Options segment, starting from the December series. In today’s session, the stock rose 4 percent after scaling a record high.
Zaggle Prepaid Ocean Services: Shares rose 5 percent after the company secured three orders in just two days. The first order won by the company is a five-year contract for Zaggle’s fleet program from AGP City Gas. Following that, the company won a one-year order from Hitachi India. Under this order, Zaggle would provide Hitachi India with its Zaggle propel rewards solution. Aside from these, the company also signed a two-year master agreement with Blink Commerce to provide its Zoyer solution.