Morning Update :–Nifty began lower today.
Indian Market
FII AND DII
| FII Bought | 1459.12 Cr |
| DII Bought | 554.39 Cr |
Indian Market News
- Wall Street closes marginally lower, ending off a record-breaking year.
- Waaree Energies IPO | The company files draft documents with the SEBI, including a fresh issue component of Rs 3,000 crore.
- Ola Electric is the first e-scooter startup to receive PLI approval.
- Alkem Labs sells its US-based unit for Rs 66 crore.
- L&T has been awarded a Rs 1,040-crore contract for the Kanaka Line of Bengaluru suburban rail.
- In Delhi, the price of jet fuel (ATF) has been reduced to Rs 1.01 lakh/kL from Rs 1.06 lakh/kL.
- December manufacturing activity in China fell more than predicted.
- Two-wheeler sales are predicted to increase by 30% in December, with Bajaj Auto and TVS likely to be the top performers.
- In 2023, FPIs will invest Rs 1.7 lakh billion in Indian equities.
- Eicher Motors has received a tax demand order for Rs 130 crore.
- Bharat Sanchar Nigam awards HFCL a Rs 1,127 crore order.
- Domestic natural gas prices fell to USD 7.82/mmBtu in January, down from USD 8.47/mmBtu in December. Domestic natural gas prices have now reached their lowest level since July 2023.
- Dr. Reddy’s Labs pays $2 million for a 6.46% interest in Edity Therapeutics.
- Automobile stocks will be scrutinised ahead of December sales figures.
Global Markets updates
GIFT Nifty
With a drop of 72 points, the GIFT Nifty indicates a somewhat bearish start for the broader index. The GIFT Nifty futures contract closed at 21,776 points after reaching a high of 21,812 points.
US Markets
Stocks slipped slightly on Friday, but the S&P 500 ended 2023 with a 24 percent gain, driven by moderated inflation, a solid economy, and the Federal Reserve’s end of its rate-hiking campaign. The S&P 500 increased for nine weeks in a row, its longest winning streak since 2004. The Nasdaq Composite, driven by AI euphoria, ended the year at 24.2%. The S&P 500 is just shy of a new all-time high, while the Dow Jones Industrial Average fell 20.56 points to 37,689.54, setting a new high. The Nasdaq Composite surged 43.4 percent, marking its greatest year since 2020.
European Markets
European stocks finished Friday’s session in the green, capping off a strong year. The regional Stoxx 600 index closed 2023 up 12.64 percent year on year. It comes after a 12.9 percent drop in 2022. On Friday, the Stoxx closed the day 0.1 percent higher, with almost all sectors up despite light volume. London markets closed early, with the FTSE 100 up and the FTSE 250 down.
Grifols, a Spanish pharmaceutical company, rose roughly 8.4 percent after announcing it will sell a 20 percent stake in Shanghai RAAS, a blood products company, to China’s Haier for approximately $1.8 billion.
Despite the country’s bleak economic outlook, Germany’s DAX has grown nearly 20% by 2023, while France’s CAC 40 and the UK’s FTSE 100 have gained 16.4% and 3.64 percent, respectively. In the United States, equities were slightly changed Friday as the S&P 500 index chased a new record high to cap out the two-month run.
Asian Markets
On the last trading day of 2023, Asia-Pacific markets experienced a decline, with China equities being the only exception. Xiaomi, a Chinese consumer electronics company, announced plans to enter China’s oversaturated electric-vehicle market, aiming to compete with Tesla and Porsche. The Hang Seng index in Hong Kong fell by over 4%, while China’s CSI 300 index closed 0.49 percent higher at 3,431.11. Despite rising more than 2% in the previous day, China and Hong Kong indices were still on track to be the year’s worst percentage losers among major Asia-Pacific markets. Japan’s Nikkei 225 finished the year with gains of over 28%, making it Asia’s best-performing market. The broader Topix closed 0.19 percent higher at 2,366.39, after rising more than 25% in 2023. South Korean markets closed on Friday, with the Kospi up 18.7% year to date and the Kosdaq up 27.5%. The S&P/ASX 200 index in Australia closed 0.31 percent lower at 7,590.80, but was still up 7.84 percent for the year.
Oil Prices
US crude oil finished the year more than 10% lower as gloomy sentiment took hold due to concerns that the market is oversupplied due to record production outside of OPEC.
On Friday, the West Texas Intermediate contract for February fell 12 cents, or 0.17 percent, to settle at $71.65 per barrel. The March Brent price fell 11 cents, or 0.14 percent, to close at $77.04. Despite persistent geopolitical danger in the Middle East due to the horrific war in Gaza, US crude and the global benchmark recorded their first yearly fall since 2020. WTI is down 10.73 percent year to date, while Brent is down 10.32 percent.
On Tuesday, oil prices climbed nearly 3% on fears that militant strikes on vessels in the Red Sea might disrupt global trade and fuel supply. While fears of escalation in the Middle East have caused brief price increases, dealers are mostly concerned with the supply and demand balance.
Dollar Index
In futures trading, the Dollar index was 0.06 percent down at 101.32, while the value of one dollar was close to Rs 83.09.
Gold Prices
Gold prices maintained stable on Friday, finishing the year at levels well above $2,000 per ounce, bolstered by anticipation that the US Federal Reserve could lower interest rates as early as March. Spot gold was unchanged from the previous session at $2,062.59 per ounce. US gold futures settled 0.6 percent lower at $2,071.80, although the year ended 13.45 percent higher, marking the first positive year in three.
News updates
Arvind Panagariya, a former NITI VC, is the head of the 16th Finance Commission.
A government decision has named Arvind Panagariya, a Columbia University professor and former vice-chairman of NITI Aayog, as the chairman of the 16th Finance Commission. The commission will be formed from the date of their assumption of office until the submission of the report or 31st October 2025, whichever is earlier. The report, covering five years starting on April 1, 2026, will be accessible by October 31, 2025. Ritvik Ranjanam Pandey, Joint Secretary in the Department of Revenue, will serve as the panel’s secretary. Separate notices will be sent for the nomination of other panel members.
Rise of Rs 1.29 lakh cr in Mcap for 8 of the top 10 most valued corporations; HDFC Bank is the largest gainer
Eight of India’s top ten most valuable companies’ market value increased by Rs 1,29,899.22 crore during the holiday-shortened trading session. The BSE benchmark equities indices saw a notable gain, with the index hitting an all-time high of 72,484.34. The top-10 pack’s greatest winners were Hindustan Unilever, Bharti Airtel, LIC, and HDFC Bank. The BSE benchmark increased by 1,133.3 points, or 1.59 percent, last week. Stock markets were closed for Christmas.
A boost in demand and a reduction in inflation in developed nations would help exports in 2024.
India’s exports are expected to grow in 2024 due to factors such as easing inflation in wealthy nations, declining interest rates, and a gradual increase in global demand. The services sector is expected to outperform the goods sector, with total outbound shipments expected to exceed $900 billion. The country is also expected to see a healthy increase in outbound shipments due to a stable rupee, focus on new markets like Latin America and Africa, new products like mobile phones and fresh fruits, e-commerce export promotion, and free trade agreements with the UAE and Australia. Despite challenges like geopolitical unrest and China’s post-pandemic recovery, exporters have capitalized on opportunities in both established and emerging economies.
Stocks in news
Karur Vysya Bank: ICICI Prudential Asset Management Company (ICICI AMC) has been given permission by the Reserve Bank of India to purchase up to 9.95 percent of the paid-up share capital or voting rights of Karur Vysya Bank.
Grasim Industries: In Bharuch, Gujarat, the chemical branch of the Aditya Birla Group company has started producing 1.23 lakh tonnes of advanced materials (formulations and epoxy resins) annually. The overall annual capacity of advanced materials is 2.46 lakh tonnes with this increase. The expansion will help the company’s specialty chemical business flourish.
Dr. Reddy’s Laboratories: 10,14,442 preferred A-1 shares of Edity Therapeutics, an Israel-based biotechnology business in the development stage, were purchased by the step-down subsidiary Dr. Reddy’s Laboratories, Inc. This represents 6.46% of Edity’s fully diluted shareholding. The cost of these shares is $2 million.
SBI Cards and Payment Services: Nitin Chugh’s appointment as a nominee director to the company’s board of directors, effective October 4, 2023, has been approved by shareholders. At State Bank of India, Nitin is the Head of Digital Banking and Deputy Managing Director.
Macrotech Developers: The Central Goods and Service Tax demand for Rs 91,60,63,334 has been raised by the Deputy Commissioner of State Tax, Mumbai. This demand includes a tax liability of Rs 34,43,84,712 for the period of July 2017 to March 2018.
Bondada Engineering: The business has board clearance to pay Rs 2.19 crore to acquire a 60% ownership in Atpole Technologies, the industry leader in innovative torque motors and controllers for EV 2 and 3 wheelers, drones, and industrial and defence application motors. Following this agreement, Atpole will become a Bondada Engineering subsidiary.
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