Markets End Volatile Session in the Green!

📰Daily Market Wrap-Up by Stock Whisperers-November 19

Author

thestock whisperers
November 19, 2024

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • Sensex: Rose 239.37 points (+0.31%) to close at 77,578.38.

  • Nifty: Climbed 64.70 points (+0.28%) to 23,518.50.

  • BSE Midcap and Smallcap Indices: Gained nearly 1% each.

  • Sectoral Highlights:

    • Gainers: Media, Auto, Realty, IT, and Pharma rose 0.5-2.5%.

    • Losers: Metal, Oil & Gas, and PSU Banks dipped 0.5% each.

Stock market holiday: The NSE and the BSE will be closed on Wednesday, November 20 on account of the Maharashtra state elections 2024.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): ₹-3,411.73 crore (Net Sellers)

  • Domestic Institutional Investors (DII): ₹2,783.89 crore (Net Buyers)

FIIs continued heavy selling, but DIIs offset some pressure by sustaining their buying streak.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Profit Booking Ahead of State Elections: Investors showed caution ahead of Maharashtra elections, capitalizing on short-term rallies to lock in profits.

  • Valuation Correction: Recent market corrections indicate that valuations may stabilize, but sustained recovery depends on an improvement in earnings, expected with increased state and central spending in the year's second half.

❓ DO YOU KNOW?

  • Bottom Fishing Explained: Investors practice bottom fishing by buying stocks that have seen significant declines, betting on their recovery potential. However, this strategy comes with risks if the downtrend persists due to weak fundamentals.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: M&M, Trent, Tech Mahindra, HDFC Bank, Eicher Motors.

  • Top Losers: SBI Life, HDFC Life, Reliance Industries, Tata Consumer, Hindalco.

  • PSP Projects: Jumped +15% intraday after reports of potential acquisition talks with Adani Group.

  • Suzlon: Locked in +5% upper circuit as Morgan Stanley revised the 12-month target price to ₹71.

  • PG Electroplast: Gained +8% on announcing an EV manufacturing deal with Africa's largest player.

  • PSU Surge: IRFC, Cochin Shipyard, and RVNL rallied +5% intraday on strong sentiment in PSU stocks.

  • Waaree Energies: Dropped -7% due to weak Q2 earnings.

  • Havells India: Rose +3% after announcing plans for refrigerator manufacturing.

  • Swiggy: Received a Neutral rating from Motilal Oswal amidst its competitive position in the quick commerce sector.

  • Saatvik Green Energy: Filed draft papers to raise ₹1,150 crore via IPO, targeting solar PV module expansion.

Weekly Stock Markets Rundown

November 18-22, 2024

With a muted September quarter earnings season behind us, investors' focus shifts to the global economy. This week, key economic data and major events like the G20 Summit will steer the market's sentiment. The November flash purchasing managers indices (PMI) from India and other global economies are due for release, providing an early glimpse into manufacturing and services activity for the month.

Meanwhile, the primary market action heats up as NTPC Green Energy’s IPO opens, aiming to raise ₹10,000 crore. Also, expect the listing of Zinka Logistics Solution and results from Waaree Energies.

📌Stocks to Focus:

  • PSU Stocks: IRFC, RVNL, and Cochin Shipyard are gaining traction amidst renewed interest in government-backed companies.

  • Suzlon: Positive brokerage sentiment and sectoral tailwinds in renewables.

  • PSP Projects: Acquisition talks could lead to the re-rating of the stock.

  • PG Electroplast: Strategic EV deals position it for long-term growth.

  • Saatvik Green Energy: Upcoming IPO and focus on solar module manufacturing present growth opportunities.

India as a safe haven amid global trade tensions CLSA report.

In a strategic pivot, global brokerage firm CLSA has increased its allocation to Indian equities, raising India to a 20% overweight position while significantly reducing its exposure to China. This decision marks a reversal from earlier allocations, highlighting India's economic stability and potential for robust foreign inflows.

📝Summary:

Despite market volatility, indices ended in the green as selective buying offset persistent FII selling. PSU and renewables stocks shone, with stocks like Suzlon and PSP Projects attracting strong investor interest. Recovery in broader indices will depend on earnings improvement and post-election government spending. Investors should remain cautious and focus on sectors with strong growth potential.

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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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