Morning Update :– On Wednesday, US equities closed down after a sudden mid-afternoon drop stopped Wall Street’s remarkable run, which had been fueled by lowering interest rates and the Federal Reserve’s dovish stance.
Sensex – Loss  -550  Points at  69,956
Nifty 50 – Loss   -164    Points at  20,986
Indian Market
FII AND DII
| FII Sold | Â 1,322.08Â Â Cr |
| DII Bought | 4,754.34 Cr |
Indian Market News
- Wall Street closes significantly down after a sudden sell-off ends the rise.
- Oil prices fall on demand concerns following a stock build in the United States.
- Gold prices have recovered as a result of lower US yields and a stronger dollar.
- Asian markets are trading lower; the Nikkei is down 1.5%, and the Kospi is down 1%.
- A Mumbai-based business couple will invest Rs 1,100 crore in Spicejet, joining 62 other investors.
- Inox India will make its market debut on December 21.
- Following the SAT ruling, SEBI, NSDL, and NSE may be have to pay over Rs 1,400 crore in compensation to Karvy lenders.
- Benchmark Computer Solutions’ shares will be listed on the BSE SME on December 21.
- Nippon India MF and Goldman Sachs select 16.01 lakh Indian shares On the day of the listing, shelter
- Anchor investors purchase shares worth Rs 171 crore in the Innova Captab IPO.
- UltraTech Cement would pay Rs 20 crore for a 26% interest in Clean Max Terra.
- Blackstone sells a 23.5% interest in Embassy REIT for Rs 7,100 crore.
Global Markets updates
GIFT Nifty
The GIFT Nifty has lost 78 points, or 0.37 percent, indicating a poor start for the Indian market as a whole. The 21,139 mark was the focal point of the Nifty futures trade.
US Markets
US equities ended the day on the lower side on Wednesday, following Wall Street’s spectacular gain that was fueled by declining interest rates and the Federal Reserve’s dovish shift. The euphoria was abruptly stopped by a mid-afternoon plunge.
Late in the afternoon, all three of the major U.S. stock indexes saw a decline, finishing 1.3 to 1.5 percent below Tuesday’s closing.
The S&P 500 lost 70.02 points, or 1.47 percent, to 4,698.35, the Nasdaq Composite slid 225.28 points, or 1.5 percent, to 14,777.94, and the Dow Jones Industrial Average plummeted 475.92 points, or 1.27 percent, to 37,082.
Asian Markets
Following Wall Street’s overnight decline, Asian markets declined on Thursday as investors awaited US inflation and GDP data.
Oil Prices
Following attacks on ships by Yemen’s Houthi forces, who are associated with Iran, in the Red Sea, investors became concerned about the potential interruption of global trade and the escalation of hostilities in the Middle East, which ultimately resulted in a modest increase in oil prices on Wednesday.
Restricting price increases were an unexpected increase in US crude inventories, higher-than-anticipated increases in fuel stocks, and unprecedented domestic oil output.
US West Texas Intermediate crude closed up 28 cents, or 0.4 percent, at $74.22 a barrel, while Brent crude futures settled up 47 cents, or 0.6 percent, at $79.70 a barrel.
Gold Prices
Wednesday saw little change in gold prices as investors prepared for a barrage of economic data that would be released later this week and may provide new insights into the US Federal Reserve’s monetary policy trajectory.
As of 2:27 p.m. ET (1927 GMT), spot gold was down 0.2 percent at $2,035.97 per ounce. US gold futures ended the day at $2047.7, down 0.2 percent.
US Dollar
The abrupt end to a robust US stock market advance sent investors running for cover, and the unexpected decline in British inflation hurt the pound. On Thursday, the dollar regained support.
The British inflation rate fell short of expectations in October, hitting a two-year low of 3.9 percent annually, which caused the sterling to experience its biggest overnight decline in two months.
In early Asia trade on Thursday, the dollar index, which has lost 1% of its value this year, remained stable at 102.37. Ten-year US Treasury yields in New York fell to 3.847 percent, the lowest level in seven months.
News Updates
While the official estimate is 6.5%, the RBI Model predicts 6.0% GDP growth for India in FY25.
India’s GDP growth for the upcoming year is predicted by a statistical model created by the Reserve Bank of India (RBI) to be 6.0 percent, which is 50 basis points less than the official projection of 6.5 percent provided by the central bank in its Monetary Policy Report from October.
The RBI has developed a dynamic stochastic general equilibrium (DSGE) model as part of the suite of models for guiding monetary policy formulation, according to the central bank’s monthly State of the Economy article, which was published on December 20.
Following the SAT judgement, SEBI, NSDL, and NSE would be required to compensate Karvy lenders with around Rs 1,400 crore.
In response to a ruling by the Securities Appellate Tribunal on December 20, the Securities and Exchange Board of India (Sebi), the National Stock Exchange (NSE), and the National Securities Depository Limited (NSDL) could be held financially liable for more than Rs 1,400 crore.
The order states that they must either reimburse the brokerage’s lenders for the value of the underlying equities plus a ten percent annual interest rate, or return the shares that Karvy Stock Broking pledged.
Lenders including Axis Bank, ICICI Bank, Bajaj Finance, HDFC Bank, and IndusInd Bank came before the tribunal in response to a request from the market regulator for the depository to return assets promised by Karvy to shareholders.
Stocks in news
Inox India (INOXCVA): The manufacturer of cryogenic tanks, Inox India (INOXCVA), plans to offer its equity shares on the BSE and NSE. The price per share for the final issuance has been set at Rs 660. Experts anticipate that the listing premium will exceed the issue price by 75–80%.
Mazagon Dock Shipbuilders: The Ministry of Defence’s acquisition wing and the state-owned shipbuilding business have inked a Rs 1,600 crore deal for the manufacture and delivery of six next-generation offshore patrol vessels (NGOPVs) for the Indian Coast Guard (ICG).
Cochin Shipyard: The Ministry of Defence (MoD) and the public sector undertaking business have inked a deal worth Rs 488.25 crore. The work package covers upkeep and repairs for the naval ship’s systems and equipment.
UltraTech Cement: The biggest cement business in the nation has agreed to pay Rs 20.25 crore to purchase 26% of Clean Max Terra’s equity shares through a share subscription and shareholders agreement. Clean Max Terra is a company that produces and distributes renewable energy.
BSE: Pramod Agrawal’s appointment as Chairman of the Governing Board of the stock exchange, effective January 17, 2024, has received clearance from the SEBI. On January 16, 2024, S. S. Mundra, Chairman and Public Interest Director, will conclude his tenure.
ICICI Bank: Sandeep Batra has been reappointed as the bank’s executive director, effective December 23, 2023, to December 22, 2025, by the Reserve Bank of India. The five-year term that the shareholders previously approved is still in effect for this two-year renewal.
Karur Vysya Bank: As of January 3, 2024, Rajesh E. T., the Chief of Internal Vigilance, has been moved to the Inspection and Audit Department to oversee and create the software programmes for that division. Therefore, starting on January 3, 2024, Ajin Raj will assume leadership as the bank’s Chief of Internal Vigilance. In addition, the bank has made the decision to give up its merchant banker registration certificate.
Office Parks at Embassy REIT: International investment company Blackstone sold a total of Rs 7,100 crore, or Rs 316 per share, to a number of local and overseas investors for its 23.5 percent holding in Embassy REIT. The REIT sold about 19 crore units at an average price of Rs 316 per unit to a number of investors, including Capital Group, APAC Company XXIII, Fidelity Funds South East Asia Fund, HDFC MF, SBI Mutual Fund, and ICICI Prudential MF.
Flair Writing Industries: For the quarter ended September FY24, the writing instrument manufacturer recorded a 3.2 percent sequential increase in net profit at Rs 33.2 crore and a 4.2 percent quarter-over-quarter improvement in revenue at Rs 257 crore. While Q2 FY24 EBITDA was Rs 53.8 crore, up 2.9 percent on a quarter-over-quarter basis, the margin decreased by 30 basis points to 20.9 percent.
India Shelter Finance Corporation: Goldman Sachs Funds – Goldman Sachs India Equity Portfolio bought 5,91,027 equity shares for Rs 593.08 per share, while Nippon India Mutual Fund purchased 10,10,000 equity shares via open market transactions for Rs 572.81 per share. At a cost of Rs 595.82 per share, BofA Securities Europe SA has net purchased 5,11,016 shares of the firm.
Allcargo Logistics: The volume of LCL (less-than-container load) in November 2023 was steady (up 0.11 percent) from October 2023 to November 2022 and slightly decreased 0.35 percent from November 2022 to November 2023. The volume will include a contribution of approximately 1.5% from the new acquisition in Germany as of January 2023. The weakening demand is a reflection of the challenging macroeconomic climate for international trade. Key regions of the Americas, LATAM, and Europe saw a significant downturn, whereas APAC—led by China and India—saw some improvement.
Nippon Life India Asset Management: At a price of Rs 445.35 per share, IndusInd Bank sold 1,78,57,355 equity shares, or 2.86 percent of the firm, for a total of Rs 795.27 crore. At the same price, SBI Mutual Fund bought 32,68,590 equity shares, worth Rs 145.6 crore, and ICICI Prudential Mutual Fund bought 47,01,405 equity shares, worth Rs 209.4 crore.
Satin Creditcare Network: The qualified institutional placement (QIP) has been completed, and the microfinance company has funded a total of Rs 250 crore by selling 1,08,36,584 equity shares to eligible institutional buyers at a price of Rs 230.70 per share. Institutional investors, including ICICI Prudential Life Insurance Company, Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company, responded favourably to the December 14 offering, which was oversubscribed 1.9 times over.
Siyaram Recycling Industries: On December 21, the business will list its equity shares on the BSE SME. Each share is being issued for Rs. 46. For ten trading days, the stock will be in the trade-for-trade category.
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