Summary of the Day's Market Performance

Market Overview

• Sensex: Up 445.29 points (+0.59%) at 80,248.08.

• Nifty: Gained 144.90 points (+0.60%) to close at 24,276.

• Midcap & Smallcap Indices: Both rose nearly 1%.

• Sectoral Indices: All sectors ended in the green, with Realty, Pharma, Metal, Auto, and Media up 1% each.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-238.28 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹+3,588.66 crore (Net Buyers)

Domestic institutional investors continued to support the market amid selling pressure from foreign investors.

• Resilience Amid GDP Concerns:

  • Despite a slower Q2 growth rate, markets remained optimistic, aided by October’s core sector output recovery.

  • Sluggish earnings growth appears priced in, while midcap and smallcap stocks saw renewed investor interest.

• RBI Policy Ahead:

  • Investors are cautiously watching the upcoming RBI policy amid potential risks of a GDP forecast cut.

  • Inflation dynamics make a rate cut unlikely, with the RBI expected to present a more realistic FY25 growth projection.

What’s Behind the Windfall Tax Removal?

Introduced during high crude oil prices to curb supernormal profits, the windfall tax on petroleum products was scrapped as oil prices stabilized, giving relief to companies like ONGC and Reliance.

Key Stock Movements and News

• Biggest Nifty Gainers: UltraTech Cement, Apollo Hospitals, Grasim Industries, JSW Steel, Shriram Finance.

• Biggest Nifty Losers: HDFC Life, Cipla, NTPC, SBI Life Insurance, L&T.

• Ola Electric: Shares rose 6% as the CEO announced plans to expand the company’s store count from 800 to 4,000 by December 20.

• Oil & Gas Stocks: Reliance, ONGC, Oil India rallied after the GOI scrapped windfall tax on petroleum products.

• Swiggy: Shares rose 4% as it expanded its 10-minute food delivery service, Bolt, to over 400 cities.

• Cipla: Promoters announced plans to sell shares worth ₹2,000 crore via a block deal.

• MapMyIndia: Stock tumbled 3% following plans to hive off its B2C business into a separate entity.

• Petronet LNG: Gained +1% after UBS upgraded the stock, raising its target price to ₹400 per share.

• Cochin Shipyard: Hit the +5% upper circuit after securing a ₹1,000 crore dry docking vessel contract from the Indian Navy.

• Biocon: Shares gained as the US FDA approved Yesintek, a drug for Crohn’s disease.

• Hyundai Motor: Shares dipped after November sales plunged 7%.

• Cochin Shipyard: Momentum driven by a ₹1,000 crore Indian Navy contract.

• Petronet LNG: Positive sentiment following an upgrade by UBS.

• Ola Electric: Aggressive expansion plans could fuel further upside.

• Swiggy: Bolt’s rollout to 400+ cities signals strong growth potential.

• Cipla: Short-term pressure likely due to the ₹2,000 crore block deal.

The markets ended strongly, driven by gains across all sectors and support from DIIs. Optimism around midcap and smallcap stocks, along with recovery in core sector output, outweighed GDP concerns. Investors now look ahead to the RBI policy for further cues on growth and inflation.

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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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