Closing bell:- On December 14, the US Federal Reserve’s turn to a dovish stance sparked a bull run in Indian markets. While the Sensex ended 929 points higher, the Nifty 50 approached 21,200. Nifty IT and Nifty Realty were the main leaders of this bull trend, rising 3.5 percent and 3.8 percent, respectively.
Closing bell
Indian market news
Fii and Dii data
| Fii Bought | 4,710.86 Cr |
| Dii Sold | 958.49 Cr |
Indian market news
- Bulls propel the Sensex 929 points higher, as the Nifty closes above 21,150; IT and real estate equities lead the way.
- The Nifty IT index is the best performing sector, finishing 3% higher on December 14th.
- In a bull market, media companies are the biggest laggard; the Nifty Media index is down 0.2%.
- The ADB raises India’s growth forecast for FY24 to 6.7%.
- In November, wholesale price inflation reached an 8-month high of 0.26%.
- The rupee closes at 83.33/$, down from 83.40/$ on Wednesday.
- Jupiter Wagons receives a Rs 1,617 crore order for the manufacture and supply of 4,000 wagons.
- Oriental Rail’s subsidiary secures an order for the manufacture and supply of 1,200 BOXNS wagons.
- In November, wholesale price inflation reached an 8-month high of 0.26%.
- NCDC’s Rs 1,500 crore order boosts NBCC by 5%.
- Sunteck Realty shares will be scrutinized when promoters Starlight Systems and Satguru Infocorp withdraw.
- According to Bloomberg, 1.21 million shares of Max Healthcare changed hands in a single block transaction.
- SAIL; According to Bloomberg, around 3.06 million shares were traded in a single block transaction.
- Warburg Pincus may sell 9.25% of its investment in Fusion Micro Finance.
- L&T Finance; According to Bloomberg, around 3.67 million shares were traded in a single block transaction.
| Sensex | 929.60 | +1.34% | 70,514.20 |
| Nifty 50 | 256.35 | +1.23% | 21,182.70 |
| Nifty Bank | 640.05 | +1.36% | 47,732.30 |
Market Movers
| Tech Mahindra | 48.75 4.01% | HDFC Life | -16.90 -2.42% |
| LTIMindtree | 208.60 3.64% | Power Grid Corp | -5.00 -2.11% |
| HCL Tech | 46.85 3.42% | Cipla | -13.35 -1.10% |
| Infosys | 49.05 3.39% | TATA Cons. Prod | -10.55 -1.10% |
| Wipro | 12.75 3.04% | Nestle | -266.00 -1.06% |
News updates
In November, wholesale price inflation reached an 8-month high of 0.26%.
Wholesale inflation in India climbed to 0.26 percent in November, breaking out of the deflationary zone for the first time since March 2023, according to statistics provided by the commerce ministry on December 14. Inflation in the Wholesale Price Index (WPI) was -0.52 percent in October 2023 and 6.12 percent in November 2022.
The current wholesale inflation figure of 0.26 percent is the highest in eight months.
The WPI data comes only two days after the statistics ministry reported that headline retail inflation jumped to a three-month high of 5.55 percent in November, albeit being 189 basis points lower than the 15-month peak of 7.44 percent in July. Over the same time span, wholesale inflation has risen by 149 basis points.
Fed maintains current interest rates and adopts a dovish stance for 2024.
On December 13, the US Federal Reserve adopted a dovish stance for 2024 and held interest rates steady at 5.25–5.5 percent for the third consecutive meeting. Chairman Jerome Powell gave a strong signal that the US central bank will start reducing interest rates in 2024, indicating that reductions of 75 basis points would occur the following year.
Bond yields decline following the Fed’s decision.
The US Federal Reserve’s decision to hold interest rates steady, indicating rate decreases in 2024, put significant pressure on the yields on US Treasury bonds. The yield on the 10-year Treasury note was less than 4%, having hit a multi-year high of 5% in October. Right now, the yield is getting close to where it was in August.
US dollar index declines in response to the Fed’s 2024 forecast
The US dollar index, which measures the value of the US dollar relative to six other currencies, dropped to 102.9 following the announcement of the most recent Fed monetary policy decision. When the Fed reduces interest rates and adopts a more dovish perspective, it promotes investor borrowing, which eventually depresses the value of the dollar.
Dollar’s decline could strengthen the rupee
Due to ongoing demand from importers for the US dollar ahead of the US Federal Reserve meeting, the Indian rupee fell to a record closing low of 83.4 against the US dollar on December 14. On December 14, nevertheless, a weaker dollar and a dovish outlook from the US Federal Reserve might strengthen the home currency due to the decrease of interest rates.
Oil prices rise as OPEC+ demand is predicted.
OPEC maintained its prediction for the rise of global oil demand in 2023 at 2.5 million barrels per day (bpd), which was the same as last month’s assessment, in the widely followed monthly report from OPEC+. As a result, oil prices increased, with WTI Crude trading at $70 per barrel and Brent Crude selling at $75 per barrel, up 0.8 percent apiece.
Following the Fed’s interest rate delay, gold shines
After the US Fed signalled that its cycle of interest rate hikes was coming to an end and hinted at potential rate reduction for next year, gold prices increased by more than 1%.
US gold futures closed 0.2 percent higher at $1,997.30, while spot gold increased 1.3 percent to $2,004.79 per ounce.
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TCS buyback acceptance percentage at 35%, better than prior time
Tata Consultancy Services (TCS) has decided the acceptance percentage of its buyback issue at roughly 35 percent, some investors who tendered their shares claimed.
The acceptance ratio refers to several shares accepted to be bought by the corporation against the number of tendered shares. The ratio was 24 percent during the 2022 buyback.
For small shareholders, the ratio of repurchase (i.e. eligible number of shares to be tendered for the number of shares owned) was fixed at one share for every six shares held as of the record date. For other stockholders, it was two shares for every 209 shares held by them.
The company planned to buyback 4.09 crore shares at Rs 4,150 apiece and received bids for 26 crore shares.
SpiceJet board meet to examine fundraising and Q2FY24 results adjourned till Dec 12
SpiceJet, once India’s second-largest carrier by market share, said that it has pushed out the board meeting to examine fundraising and Q2FY24 results to December 12. The airline was set to declare its Q2FY24 results on December 11.
Sterling & Wilson Renewable Energy publishes QIP; floor price at Rs 365.02 per share
Sterling and Wilson Renewable Energy Limited on December 11 announced the opening of a qualified institutional placement (QIP) issuance.
The Securities Issuance Committee agreed a floor price for the offer at Rs 365.02 per share following the computation stipulated by the Securities and Exchange Board of India, the business said.
Additionally, the worldwide pure-play, end-to-end renewable engineering, procurement and construction (EPC) solutions provider may consider granting a reduction of up to 5 percent on the floor price. A meeting is scheduled to establish the issuance price of the equity shares, it stated.