Morning Update :–BPCL, Apollo Hospitals, Dr Reddy’s Laboratories, Power Grid Corp, and ONGC were among the major losers on the Nifty, while Tata Consumer, Tata Motors, Adani Enterprises, Adani Ports, and L&T were among the gainers.
Sensex – Fall -163 Points at 72,246
Nifty 50 – Fall -43 Points at 21,735
Indian Market
FII AND DII
| FII Bought | 4,358.99 Cr |
| DII Bought | 136.64 Cr |
Indian Market News
- Oil prices will conclude the year 10% lower as supply concerns interrupt a winning streak.
- Gold is expected to have its greatest year in three as Fed rate drop predictions boost its appeal.
- This fiscal year, coal production increased by more than 12% to 664.37 MT.
- The dollar ends a two-year winning streak on rate decrease bets in 2024.
- On December 29, Innova Captab will make its debut on the BSE and NSE.
- PNB has approved a capital increase of up to Rs 7500 crore.
- The RBI has published draft guidelines for bond forwards in government securities.
- Brainbees, the parent company of FirstCry, has filed IPO papers with the SEBI; M&M will sell 28 lakh shares.
- The RBI has approved ICICI AMC’s acquisition of up to 9.95% of Federal Bank.
- On December 29, the RBI will hold a 7-day Variable Rate Repo auction.
Global Markets updates
GIFT Nifty
With a gain of 7 points, the GIFT Nifty suggests a slightly good start for the whole index. After peaking at 21, 958 points, GIFT Nifty futures were trading at 21,958 points.
US Markets
Thursday night’s minor fluctuations in stock futures came as Wall Street sought to cap out a successful year with a bang and perhaps a new record. Futures for the S&P 500 increased by less than 0.1%. Futures for the Dow Jones Industrial Average increased by 17 points, or less than 0.1 percent, and those for the Nasdaq-100 increased by the same amount.
Less than 0.5 percent separates the S&P 500 on the last trading day of 2023 from a new record high, which may act as a capstone to a surge that has gotten stronger in the last few months of the year.
In 2023, the Dow rises 13.8 percent while the S&P 500 gains 24.6 percent. With a 44.2 percent yearly gain, the Nasdaq Composite has led the way and is on track for its largest annual advance since 2003.
European Markets
Thursday’s closing of European stocks was lower as world markets looked to end the year at all-time highs. With health care firms rising 0.6% and banks down 0.5 percent, the pan-European Stoxx 600 index provisionally closed down approximately 0.1 percent.
The last trading price of the continental blue-chip index was approximately 478.21, which is not too far behind the index’s closing record of 483.44 set in November 2021. After another day of moderate increases on Wall Street, US stocks saw a little increase, and the benchmark S&P 500 index was getting closer to a record high.
Asian Markets
On the final trading day of 2023, Asia-Pacific markets saw gains as investors evaluated the future prospects of electric vehicle manufacturers following China’s Xiaomi’s debut of its first EV. The Australia S&P/ASX 200 index fell 0.37 percent, despite two sessions of gains in a row. Following Xiaomi’s announcement about entering the Chinese electric car industry, markets in China and Hong Kong will be closely monitored. The car model, which the company claims it spent over 10 billion yuan ($1.4 billion) developing, aims to compete with Tesla and Porsche. However, the major Asia-Pacific markets’ China and Hong Kong indexes are expected to end the year with the largest percentage losses, with the Hang Seng index dropping 13.8 percent in 2023 and China’s CSI 300 index down 11.8 percent for the year.
Oil Prices
Even as tensions in the Middle East simmer, worries about shipping interruptions along the Red Sea route subsided on Thursday, causing oil prices to fall by nearly 1%.
In muted trading ahead of their impending expiration, front-month February Brent oil futures were down 90 cents, or around 1.1%, at $78.75 per barrel, while the more active March contract was down 69 cents, or roughly 0.9 percent, at $78.85 per barrel. At $73.31 a barrel, US WTI crude futures were down 80 cents, or roughly 1.1 percent. On Wednesday, oil prices experienced a nearly 2 percent decline as big shipping companies started to return to the Red Sea.
Dollar Index
One dollar was trading around Rs 83.09, while the Dollar index was up 0.06 percent in futures trading to 101.32.
Gold Prices
After reaching a peak of over three weeks earlier, gold prices stabilised on Thursday as hopes of early rate reduction by the Federal Reserve in 2019 were weakened by an increase in U.S. bond yields.
After earlier soaring as high as $2,088.29, the highest since December 4, when bullion reached its all-time high, spot gold fell 0.15 percent to $2,073.98 per ounce. At $2,083.9, US gold futures saw a 0.4 percent decline.
News Updates
India’s Financial Intelligence Unit issues a show-cause notice to Binance and eight other parties.
Nine offshore virtual digital asset service providers, including Binance, have received compliance show-cause notices from the Indian finance ministry, which has also instructed the information technology ministry to block their URLs for operating illegally in the nation without abiding by local money laundering regulations. Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex are the nine entities.
The finance ministry said in a statement on December 28 that offshore and onshore providers of virtual digital asset services operating in India that engage in the following activities: exchanging virtual assets for fiat money; transferring and administering virtual assets; or providing instruments that allow control over them; must register with the Financial Intelligence Unit-India; and adhere to the guidelines set forth in the Prevention of Money Laundering Act (PMLA), 2002.
Well-capitalized banks that can withstand shocks to the macroeconomy: RBI
According to the Reserve Bank of India’s (RBI) Financial Stability Report, which was published on December 28, schedule commercial banks have adequate capitalization and can withstand macroeconomic shocks for up to a year.
The aggregate CRAR of 46 major banks is predicted to decrease under the baseline scenario, from 16.6% in September 2023 to 14.8% in September 2024. A half-yearly publication, the financial stability report provides information on changes in the nation’s financial industry.
By September 2024, it might drop to 13.5% in the medium stress scenario and 12.2% in the severe stress scenario, still exceeding the minimum capital requirements, the analysis continued.
Stockbrokers have an extra day from SEBI to settle their clients’ running accounts.
After receiving comments from their Industry Standards Forum (ISF), the market authority has granted stockbrokers an additional day to settle the outstanding accounts of their clients.
Up until recently, on the first Friday of each month or quarter, clients’ unused money in the trading account had to be returned to their bank accounts. To protect the investors’ interests, this was done. But according to the brokers’ ISF, operational issues were being caused by a single day of settlement. Thus, they are permitted to settle the accounts by Saturday by the Securities and Exchange Board of India (SEBI).
RBI authorises ICICI AMC to purchase up to 9.95% of Federal Bank.
On December 28, the Federal Bank announced that the Reserve Bank of India (RBI) has given its permission for ICICI Prudential Asset Management Company (ICICI AMC) to purchase a cumulative holding of up to 9.95 percent of the bank. The RBI has confirmed that the pertinent provisions of the Banking Regulation Act of 1949 have been followed. Federal Bank MD and CEO Shyam Srinivasan is in charge of the development.
On September 22, 2024, Shyam Srinivasan, who assumed leadership of Federal Bank MD as its Managing Director (MD) and CEO in 2010 and has been there ever since, would step down from his position.
Draft regulations on bond forwards in government securities are released by RBI
The draft guidelines on bond forwards in government securities were announced by the Reserve Bank of India (RBI) on December 28 in an effort to increase the availability of interest rate derivative products in the market.
According to recommendations, the central bank should consider introducing bond futures for government securities. The goal of the draft guidelines for contracts delivering government securities forward is to give market players—especially long-term investors—more control over their interest rate and cash flow risk.
Stocks in news
Innova Captab: On December 28, the pharmaceutical company is scheduled to make its market debut. The price per share for the final issuance has been set at Rs 448.
Satin Creditcare Network: The microfinance organisation and Karnataka Bank have signed a master agreement allowing the latter to co-lend loans to microfinance borrowers using a co-lending module in installments. The business will handle the collections and monitoring in addition to providing the service.
Swan Energy: The business announced that the board has given the go-ahead to raise up to Rs 4,000 crore by issuing equity shares or any other instruments that meet the requirements.
Federal Bank: ICICI Prudential Asset Management Company (ICICI AMC) has been granted permission by the Reserve Bank of India (RBI) to purchase up to 9.95 percent of the Federal Bank’s paid-up share capital or voting rights.
RBL Bank: Within a year, or by December 26, 2024, ICICI Prudential Asset Management Company and ICICI Prudential Life Insurance Company, are authorised by the Reserve Bank of India to purchase up to 9.95 percent of the paid-up share capital or voting rights in RBL Bank.
Tata Coffee: As of January 1, 2024, TCPL Beverages & Foods (TBFL), Tata Consumer Products (TCPL), and Tata Coffee (TCL) would operate on a composite scheme of arrangement. On January 1, 2024, the Scheme will come into effect, dissolving Tata Coffee without a winding-up. As a result, all directors’ offices and those of key managerial staff will be vacant on that date, with no more action required.
Aditya Birla Fashion and Retail: Aditya Birla Fashion and Retail has been awarded 1,93,964 equity shares for a sum of Rs 20 crore by its subsidiary Finesse International Design (FIDPL). As a result, the company’s ownership stake in FIDPL has grown from 58.69 percent to 63.50 percent of the company’s equity share capital.
Azad Engineering: At an average price of Rs 719.9 per share, or Rs 28.65 crore, the sovereign wealth fund Abu Dhabi Investment Authority has selected 3.98 lakh equity shares, or 0.67 percent of paid-up equity, in the manufacturer of high-precision forged and machined components.
Punjab National Bank: The public sector lender said that the proposal for qualified institutions placement (QIP)/follow on public offer (FPO) to raise equity capital up to Rs 7,500 crore in one or more tranches during FY25 has been approved by the Board of Directors.
Indiabulls Housing Finance: In addition to the 24.99 lakh shares purchased on Tuesday, high net worth individual Mathew Cyriac purchased an additional 25 lakh equity shares, or 0.52% interest, in the home financing company through open market transactions at an average price of Rs 213.53 per share. ICICI Prudential Mutual Fund A/C Equity – Arbitrage Fund offloaded 25,34,700 shares at an average price of Rs 218.74 per share, while SBI Mutual Fund A/C SBI Arbitrage Opportunity Fund sold 30,90,600 equity shares in Indiabulls Housing at an average price of Rs 218.16 per share.
Zydus Wellness: At an average price of Rs 1,632 per share, the alternate investment fund, Threpsi Care LLP, sold 7.8 lakh equity shares, or 1.22 percent of the firm, for Rs 127.3 crore. As of September 2023, Threpsi Care has an 11.35 percent ownership in the business. Nevertheless, promoter Zydus Family Trust purchased 3.9 lakh shares at the same price that SBI Mutual Fund selected 3.9 lakh shares.
Zed Entertainment Enterprises: At an average price of Rs 270.07 per share, investment firm Plutus Wealth Management LLP purchased 61,10,797 equity shares (0.63 percent of paid-up equity) in the media and entertainment company through open market transactions. The market value of these shares is Rs 165.03 crore.
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