Jingles and Jolts: A Tale of Nifty & Sensex This Festive Season | Weekly Update December 24 🎄
The stock market was full of surprises this holiday season 🎁. While we expected a quiet time, the NIFTY50 and SENSEX indexes proved us wrong, showing strong resilience.
Both indexes ended the week slightly lower than before but held up well despite ups and downs. Mid-week, a big shock occurred when the Sensex dropped over 900 points in just one day 😲.
This sudden fall was unexpected and left many wondering why it happened 🤔.
However, the market quickly recovered in the next two days. This was surprising, especially since foreign investors were selling off their stocks, and there were worries about a new Covid-19 variant. The hopes for a rate cut by the Federal Reserve helped the market stay steady.
Overall, this holiday season’s stock market was not as calm as we thought, showing its ability to bounce back even in uncertain times.
📈 Weekly Update
– Mr Abhishek Jain, Head of Research, Arihant Capital
Despite ending higher on the second consecutive day on Friday, the Indian benchmark indices could not reverse Wednesday’s losses and ended this week lower after their seven-week rally.
Nifty ended higher by 94.35 points or 0.44% at 21,349.40, and the Sensex closed 241.86 points or 0.34% higher at 71,106.96. Despite a premium valuation, the short-term positive trend persists, supported by a strong revival in FIIs buying & stock-specific actions.
Nifty:
Let’s look at Nifty’s daily chart. We are observing prices that have tested the “Upward Gap” area, and on the weekly chart, we are observing “Doji” candlestick formation; if we analyse both chart patterns, it indicates we may see some consolidation after a good upmove & still dip use as a buying opportunity.
If Nifty starts trading above the 21380 level, then it can touch the 21550-21800 level, while on the downside, support is 21,250, and if it starts to trade below, then it can test the level 21,100 and 20,900 levels.
Banknifty:
Let’s look at the daily chart of Banknifty. We are observing prices trading far from “Short-term “moving averages, and on the weekly chart “Doji” candlestick formation; if we analyse both charts, patterns indicate Bank-nifty can also consolidate with positive bias. Bank-nifty starts trading above 47,650, then can 47,850 and 48,200 levels.
However, downside support comes at 47,300; below that, we can see 46,900 and 46,500 levels.
📰 Stocks In News
🏢 Embassy Office Parks REIT: Various entities of Blackstone Group sold around 23.6% stake in the Embassy Office Parks REIT at ₹316 per share. The total transaction value was ₹7,065 crore.
📱 One97 Communications: The company aims to save 10-15% in employee costs with AI-led changes.
☀️ Adani Green: Executed a power purchase agreement with Solar Energy Corporation of India for 1,799 MW of solar power.
🏦 RBL Bank: RBI-appointed additional director Yogesh Dayal has finished his 2-year term at RBL Bank.
💉 Biocon Biologics: Signed a distribution agreement with the pharma company Sandoz to sell and distribute medicine for immune-related diseases in Japan.
✈️ EaseMyTrip: Acquired a 13.39% stake in Eco Hotels and Resorts in a 1:1 share swap deal.
🔬 Lupin: Will buy a portfolio of established products in Europe and Canada from Sanofi with a purchase consideration of around ₹91 crore – depending on future sales.
🚢 BEL: Got orders worth ₹2,673 crore from Goa Shipyard and Garden Reach Shipbuilders & Engineers.
🚗 Tata Motors: Has obtained a no-objection certificate from the NSE and BSE to convert its differential voting rights (DVR) shares to ordinary shares.
🛠️ Mazagon Dock: Bagged an order from the Ministry of Defence worth ₹1,600 crore.
💊 AstraZeneca: Plans to launch a breast cancer drug named Enhertu in Jan 2024.
🚜 M&M: Subsidiary Mahindra Last Mile Mobility Ltd (MLMML) announced a collaboration with lithium-ion battery recycling company Attero.
🏦 Bandhan Bank: The Board has approved the transfer of non-performing assets (NPAs) worth ₹776 crore to an Asset Reconstruction Company (ARC).
🌬️ Suzlon: Has secured a wind power project order from the KP Group, involving the supply of 92 units of their S120-2.1 wind turbine generators.
🚌 Ashok Leyland: Signed a contract to deliver 552 buses to the Tamil Nadu State Transport Corporation.
💰 SBI: Aims to finalise a 200 million euro Line of Credit (LoC) agreement with the European Investment Bank (EIB) to aid climate action projects in India.
🏦 LIC: Has been granted a one-time exemption for achieving a minimum 25% public shareholding by May 2032.
🍪 Quick Bites
👕 The Apparel Export Promotion Council (AEPC) has declared the initiation of a free trade agreement with Oman.
✈️ Around 164 planes are lying idle at 15 airports in India. Out of the total, the highest number of grounded aircraft is at Delhi airport – 64, followed by Bengaluru (27), Mumbai (24), and Chennai (20).
🍳 Commercial cooking gas prices have been reduced by ₹39.50 (19-kg cylinder).
💵 India’s foreign exchange reserves rose by $9.11 billion to reach $615.97 billion for the week that ended on 15 Dec.
👥 Around 7.72 lakh new subscribers joined the Employees’ Provident Fund (EPF) Scheme in Oct vs 9.27 lakh subscribers in Sept.
🏦 RBI has imposed monetary penalties on 5 co-operative banks for rule violations including The Kutch Mercantile Co-operative Bank and Bhabhar Vibhag Nagarik Sahakari Bank.
📱 Reliance Jio added 34.7 lakh mobile subscribers in Sept, Airtel added 13.2 lakh. Vodafone-Idea (Vi) lost 7.5 lakh.
👷 EPFO added 15.29 lakh net members during Oct 2023, an increase of 18.22% year-on-year.
💳 RBI has granted full payment aggregator licenses to Razorpay, Cashfree, and Open.
🛒 Government-promoted Open Network for Digital Commerce (ONDC) is now operational in over 500 cities and towns in India.
🔨 Foxconn (Taiwan-based) has applied to establish a semiconductor fabrication facility in India: Minister of State for Electronics and IT Rajeev Chandrasekhar.
💻 Toshiba has been delisted from the Tokyo exchange after 74 years.
🌱 Sustainability Corner
🚗 Parliamentary Standing Committee on Industry recommends extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) India Scheme by three years.
🔋 Ola Electric’s Giga factory in Krishnagiri, Tamil Nadu, will be operational by March 2024.
🌍 BYD is the first Chinese company to build cars in Europe. It confirms the plan to set up a new state-of-the-art electric passenger car factory in Szeged, Hungary.
📈 Ola Electric files papers for IPO; the company plans to issue shares worth Rs 5,500 crore, while existing investors, including founder Bhavish Aggarwal, will sell 95,191,195 shares.
💶 European Investment Bank gives Schaeffler a 10-year loan of 420 million euros for R&D in sustainable technologies in renewable energies, electric mobility, and hydrogen.
🇪🇺 EU and the UK signed off on the deal, providing much-needed certainty for EU EV manufacturing. The agreement has potentially avoided a hefty 4.3 billion euros in tariff costs & saved some 480,000 units of electric vehicle production.
♻️ Mahindra, Last Mile Mobility, and Attero, engaged in lithium-ion battery recycling & e-waste management, enter a strategic collaboration focusing on effective EV battery recycling.
🚘 Tata Motors’ electric car and SUV sales will likely surpass 75,000 units (up 56% YoY) in FY2024. The company, whose EV share of its total PV sales in India is currently 13%, is targeting EVs to contribute 30% of its total volumes by 2025 and 50% by 2030.
🛵 Ola Electric becomes the first Indian company to sell 250,000 EVs annually. Between January 1 & December 21, 2023, Ola sold 252,647 electric scooters & has a 31% share of the record 828,537 electric two-wheelers sold in India in the year to date.
🤖 ABB will supply 1,300 robots to Volvo to build next-generation EVs. The latest range ABB OmniCore robot controllers help deliver energy savings of up to 20% at sites due to their highly efficient power electronics & use of regenerative braking within the robot.
🏭 Hindalco Industries is to set up an Rs 800 crore battery foil plant in Odisha to tap the EV market and sign an MoU with US-based C4V to supply up to 2,000 tonnes of EV battery foil.
🍬 Knowledge Candy
What determines the day’s NAV I get when I redeem from a mutual fund, and how does the time of redemption affect it?
The NAV (Net Asset Value) for mutual funds changes daily, and the NAV you get when redeeming depends on the cut-off time of your redemption request.
If you redeem before 3 pm, the NAV of the current day is used to calculate the total amount you’ll receive. However, if you redeem after 3 pm, the NAV applied will be that of the next day.
For liquid and overnight mutual funds, redeeming before 3 pm means you’ll get the previous day’s NAV, and after 3 pm, the current day’s NAV is used. It’s important to note that cut-off times may vary on different mutual fund platforms.
Also Read: Charting the Future: India’s New Tech Companies at a Crossroads of Challenges and Opportunities
