Indian Stock Market Report: December Week 3, 2023

Continued gains are expected as Nifty tests 21,500. USD/INR falls on rate cut prospects. Caution on commodity stocks amid geopolitical tensions.

Indian Stock Market Report: December Week 3, 2023

Weekly Market Snapshot

Nifty and Sensex hit record highs for the second consecutive session as the US Fed signals the end of rate hikes and plans for cuts in 2024. Sensex surged 720 points to a new high of 71,234.63, and Nifty50 advanced 214.4 points to a record high of 21,397.10

Key Market Movements‌‌

  • Longest weekly winning streak in six years for BSE Sensex and NSE Nifty, extending gains for the seventh consecutive week.
  • Sensex gained 969.55 points (1.37%) to 71,483, Nifty advanced 273.95 points (1.29%) to 21,456.65 on Friday.
  • Indian rupee records its biggest single-day gain in over eight months, ending at 83 against the US dollar.
  • Foreign investor inflows indicate confidence in the economic landscape.
  • RBI raises GDP forecast for FY 2024, contributing to the positive outlook.
  • Improved global macroeconomic trends add to overall positive sentiment.

Sectoral Movements And Stock Specifics‌‌‌‌

  • Nifty and Sensex gained over 2%, Nifty Midcap 100 and Nifty Smallcap 100 indices rose 2.6% and 3.3%, respectively.
  • Nifty IT index emerged as the top sectoral performer, gaining over 7%.
  • Metal, Realty, and PSU Bank indices were lead performers this week.
Weekly Stock Market Report 11th Dec'23 to 15th Dec'23

Leaders And Laggards

  • 'Quick Short' and 'Trending Ten' were two of the best-performing models, with 7.06% and 2.78%, respectively.
  • 'High Five' and 'BTST' were two of the underperformers, with 0.21% and -0.93% returns respectively in the same period.
  • Coming to stocks, TEXRAIL, or Texmaco Rail & Engineering Ltd, provided a monthly return of 19.03% as part of 'Sector Superstars' model, followed by NLCINDIA, or NLC India Ltd, which returned 15.06% as part of 'Alpha Ally' model.
  • On the contrary, RATNAMANI, or Ratnamani Metals and Tubes Ltd, was the underperformer with negative 8.75% returns as part of the 'Alpha Ally', followed by VARROC, or Varroc Engineering Ltd with negative 7.80% returns as part of the 'Buy High Sell Higher' model.

Expert Insights And Market Outlook‌‌

  • Ajit Mishra, SVP - Technical Research, Religare Broking

Markets extended gains, settling around the day's high in line with the prevailing trend. Nifty tested 21,500 and settled at 21,449.60, with a mixed sectoral trend. Expect a breather after the recent surge, anticipating support in the 21,000-21,200 zone. Banking and IT majors are key contributors; advise aligning trades accordingly, and avoiding contrarian positions.

  • Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities

Bank Nifty bulls maintain robust momentum, surpassing 48,000 with bullish market sentiment. Strong support at 47,500; retracements viewed as buying opportunities. Upside potential is projected at 50,000, indicating continued optimism among market participants.

  • Vinod Nair, Head of Research, Geojit Financial Services

Market buoyancy continues with expectations of improved US economic growth by H2CY24. Soft landing anticipated, aided by normalization in monetary policy. USD/INR sees a steep fall on prospects of interest rate cuts next year. IT sector outperforms, driven by expectations of increased demand in the US economy.

  • Vinit Bolinjkar, Head of Research, Ventura Securities

Anticipated growth in government expenditure on infrastructure creates opportunities for the construction and engineering sectors. Caution is advised on commodity stocks due to expected volatility from geopolitical tensions and supply chain disruptions.

Reads On The Internet

India's trade deficit fell to $20.58 billion in Nov as imports shrank 4.3%
The exports, however, fell less sharply by 2.8 per cent to $33.90 billion from $34.89 billion a year ago. Trade deficit is the difference between imports and exports of a country during a time period.

Dr. Reddy’s becomes first Indian pharma company to debut on the Dow Jones Sustainability World Index
Alongside its debut in DJSI World, the company retains its place in the Dow Jones Sustainability Index for Emerging Markets (DJSI EM) for the 8th year in a row.

Indian Railways has a ₹1,00,000 crore plan to move towards zero waiting list ambition
The goal is to replace ageing rolling stock for which 7,000-8,000 new train sets will be needed. This will entail floating train procurement tenders worth around Rs 1 lakh crore

Zomato sees an opportunity in catering business
The company is also looking to add more offerings to its loyalty programme, Gold, despite concerns about the potential impact on profitability, Rakesh Ranjan, chief executive for food delivery

Ola Electric set to file DRHP by next week for 2024 IPO
Ola Electric expects to publicly list by the end of fiscal year 2024 and is looking to raise between $700 million and $800 million (Rs 5,836.3 crore to Rs 6,670.1 crore) at a $7-8 billion valuation

Infosys will soon make three-day WFO mandatory
Infosys has called upon employees to work from office at least three days a week and plans to soon make it mandatory after management requests to resume the normal office routine went largely unheeded

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