Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets—both in India and globally.
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Market Overview
The Nifty opened flat at 23,927.15 and stayed in green with positive bias throughout the day. After trading in a 70-point range for one hour, Nifty sprang up till 24,100 and traded in the upper trading range of 24,100 and 24,150 and ended the day at 24,131 and Sensex at 79,802, both gaining nearly 1% for the day as they rebounded from the previous session’s selloff.
The broader market reflected strength, with 1,742 stocks gaining compared to 1,043 declining out of 2,870 traded stocks, while 85 remained unchanged.
The sectoral indices remained broadly positive, with Nifty Pharma leading gains, up 2.35%, followed by Nifty Media and Energy rising 1.45% and 1.36%, respectively. PSU Bank and Realty were the weakest performers, down 0.48% and 0.51%, while other sectors posted modest advances, reflecting a mixed but positive session.
After market hours, India’s GDP print came in at a 21-month low of 5.4%!
Note: The above numbers for Commodity futures were taken around 4 pm.
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 5th December:
- The maximum CE OI is at 24500 followed by 24300 and 24200, and the maximum Put OI is at 24000 closely followed by 23800.
- Massive puts OI addition of 32.88 Lakh contracts around 24000 levels today indicates that these levels hold the key for the market trend in the coming week.
- Immediate support on the downside for tomorrow can be seen at 24000 levels followed by 23900 levels. Resistance on the upside is at 24300-350 levels followed by 24500, which holds the highest Call OI.
Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard.
What’s happening in India
India’s GDP grew by 5.4% in Q2 FY25, down from 7.6% last year, and lower than the estimates of 6.5% with real GVA rising 5.6%. Agriculture rebounded with 3.5% growth, while manufacturing grew 2.2%, and mining contracted 0.1%. Construction rose 7.7%, and services expanded 7.1%, driven by trade and transport. Private consumption grew 6%, and government expenditure rebounded by 4.4%, contributing to overall economic resilience. Dive deeper
Enviro Infra Engineers had a strong debut today, with shares listing at ₹220 on the NSE, a 48.65% premium over the issue price of ₹148 and closing around 207.07, 39.91% higher.
ITC Limited has acquired 100% shareholding in Greenacre Holdings Limited (GHL) from its wholly owned subsidiary, Russell Credit Limited, for ₹42.10 crore as part of internal restructuring. GHL, engaged in property infrastructure maintenance and consultancy services, is now a direct wholly owned subsidiary of ITC. Dive deeper
NCC Limited has received a Letter of Acceptance from the Ken-Betwa Link Project Authority for the EPC execution of the Daudhan Dam under the Ken-Betwa Link Project. The ₹3,389.49 crore contract (excluding GST) involves planning, design, engineering, and hydro-mechanical works, with a timeline of 72 months for completion. Dive deeper
Castrol India has restructured its 7.09% stake in ki Mobility Solutions, now merged with TVS Automobile Solutions (TASPL) under an NCLT-approved scheme. Castrol’s shareholding remains at 7.09%. TASPL operates in the automotive aftermarket, focusing on spare parts distribution and vehicle services. Dive deeper
Odisha has approved 20 industrial projects worth ₹1,36,622.24 crore, expected to create over 74,350 jobs across sectors like steel, chemicals, and green energy. Key investments include Tata Group’s ₹61,769 crore expansion of its steel plant in Jajpur. These initiatives aim to drive economic growth and attract further investments to the state. Dive deeper
The Indian government is moving to increase FDI in the insurance sector from 74% to 100%. The Finance Ministry has invited comments on the proposal until December 10. Other suggestions include reducing the minimum paid-up capital for insurance companies, allowing insurers to offer multiple insurance businesses, and lowering the net-owned funds requirement for foreign re-insurers from ₹5,000 crores to ₹1,000 crores. These changes aim to make insurance more accessible, promote industry growth, and support the goal of “Insurance for All by 2047.” Dive deeper
Adani Ports’ share price gained after signing a concession agreement with the Kerala government to expand the Vizhinjam Seaport. The project, with an additional ₹10,000 crore investment, aims to increase the port’s capacity to 30 lakh Twenty-Foot Equivalent Units (TEUs) by 2028. Despite previous delays, the agreement strengthens Adani Ports’ global maritime presence. Dive deeper
GAIL (India) Limited has signed a long-term charter contract with Kawasaki Kisen Kaisha, Ltd. (“K” LINE) for a new LNG vessel. The ship, with a tank capacity of 1,74,000 cubic meters, will be built by Samsung Heavy Industries and is expected to join GAIL’s fleet in 2027. This is the first such contract between GAIL and “K” LINE. Currently, GAIL operates four LNG vessels, with two more expected to join the fleet next year. Dive deeper
What’s happening globally
Japan’s Nikkei fell 0.4% to 38,208.03 on Friday, marking its third consecutive weekly loss, as a stronger yen and expectations of a BOJ rate hike weighed on sentiment. Exporter stocks declined, while banks and insurers gained, led by Chiba Bank and Dai-ichi Life. The index dropped 2.2% in November, its worst month since April. Dive deeper
Germany’s unemployment rate remained at 6.1% in November 2024, its highest since February 2021, with unemployment rising by 7,000 to 2.86 million, well below forecasts. Job openings dropped to 668,000, signaling continued hiring slowdowns amid economic challenges. Dive deeper
Japan’s industrial production rose 3.0% month-on-month in October 2024, led by gains in production machinery, motor vehicles, and fabricated metals. Annually, output grew 1.6%, marking the first increase in three months. Dive deeper
Eurozone inflation rose to 2.3% in November 2024 from 2% in October, aligning with forecasts, driven by smaller declines in energy prices and higher costs for industrial goods, while inflation for services and food eased.
Turkey’s GDP grew 2.1% year-on-year in Q3 2024, below the 2.6% forecast, with declines in investments, government spending, and imports. Quarterly GDP fell 0.2%, marking two straight quarters of contraction. Dive deeper
France’s economy grew 1.2% year-on-year in Q3 2024, revised from 1.3%, showing an improvement from 0.9% in Q2.
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Subramanian Sarma, Board member, L&T
- Seeing a good level of activity in the Middle East region but it varies in each country; UAE, Qatar, and Saudi Arabia present good opportunities.
- Haven’t seen any major execution issues with respect to geopolitical issues.
- Labor issues have been a problem in domestic and international markets for quite some time.
- Most of the competition is coming from Europe and Korea; there has been rational bidding. - Link
Calendars
In the coming days, we have the following major events and corporate actions:
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.