Markets Rebound with a Bang!

📰Daily Market Wrap-Up by Stock Whisperers-December 13

Author

thestock whisperers
December 13, 2024

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • Sensex: Surged 843.16 points (+1.04%) to close at 82,133.12.

  • Nifty: Jumped 219.60 points (+0.89%) to settle at 24,768.30.

  • Midcap and Smallcap Indices: Ended flat.

  • Sectoral Highlights:

    • Gainers: Auto, Bank, FMCG, and Telecom rose 0.5%-2%.

    • Losers: Realty, Metal, and Media shed 0.5% each.

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💸 Market Transactions:

  • Foreign Institutional Investors (FII): ₹2,335.32 crore (Net Buyers)

  • Domestic Institutional Investors (DII): ₹-732.20 crore (Net Sellers)

FIIs returned to buying mode, lending robust support to the market.

📊📑 Important Observations and Market Sentiments: Editor Special

  1. Rebound Power:

    • Markets sharply recovered from early losses, driven by index heavyweights and sectoral optimism.

  2. FMCG & IT Surge:

    • FMCG outperformed, supported by easing food inflation, festive demand, and price hikes.

    • IT stocks rallied, fueled by hopes of increased US spending and year-end holiday demand.

  3. Weekly Performance:

    • Nifty IT index climbed 7% in two weeks, bolstering market sentiment.

    • PSU Banks and FMCG stocks remained under pressure, while midcap indices posted modest gains.

❓ DO YOU KNOW?

  • What is the GST Input Tax Credit (ITC)?

    • ITC allows businesses to reduce the GST paid on inputs from their GST liability. However, disputes can arise over eligibility, leading to tax notices like the one Zomato received.

📰Stock News:

Key Stock Movements and News

  • Top Gainers:
    Bharti Airtel, Kotak Mahindra Bank, ITC, UltraTech Cement, HUL.

  • Top Losers:
    Shriram Finance, IndusInd Bank, Tata Steel, Hindalco, JSW Steel.

  1. Astra Microwave Products (+6%):

    • JV secured a ₹259 crore defense order, boosting shares.

  2. Bajel Projects (+10%):

    • Rallied on winning an order from Solapur Transmission.

  3. HAL:

    • Gained after signing a ₹13,500 crore deal with the Ministry of Defence.

  4. Metal Stocks (-3%-5%):

    • Dropped as China's stimulus pledges lacked clarity, leading to uncertainty.

  5. Indian Oil (+3%):

    • Rose after Jefferies upgraded to 'Buy' with a 31% upside.

  6. Zomato (-5%):

    • Sank after receiving an ₹803.4 crore tax notice from the GST department.

  7. Godrej Industries:

    • Picked up a 1.07% stake in Godrej Properties, showcasing confidence in real estate prospects.

  8. UBS Downgrades:

    • Cut targets on AU Small Finance Bank, Axis Bank, and IndusInd Bank due to lender concerns.

Weekly Stock Markets Rundown

December 9-13, 2024

  1. The RBI kept the repo rate unchanged while reducing the CRR rate, signaling cautious optimism about economic recovery in H2 FY25.

  2. Central banks in Australia, Canada, and Europe are set to decide on interest rates, providing critical global market cues.

  3. IPO rush continues, with Vishal Mega Mart, Sai Life Sciences, and One Mobikwik Systems opening for subscription………………….

👀Stocks to Focus:

  • HAL: Long-term gains anticipated with significant Ministry of Defence deals.

  • Indian Oil: Jefferies' upgrade and valuation attractiveness make it worth watching.

  • IT Sector: An anticipated spending boost in the US will keep the sector focused.

📝Summary:

Indian markets bounced back strongly from weak openings, ending robustly with optimism in FMCG, Auto, and IT sectors. FIIs turned aggressive buyers, while DIIs booked profits. Metal stocks faced pressure on lackluster stimulus details from China. Stock-specific developments, such as HAL’s defense deals and Indian Oil’s upgrade, added to the positive momentum. With festive demand and easing inflation driving sentiment, markets look poised for further gains.

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice.

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