Nifty Logs Third Straight Red Month; Flat Finish to December Expiry



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Market Overview

Nifty opened at 23,775.80 and gradually slid from the day’s high, touching a low of 23,653.60. However, it quickly recovered after hitting the low, trading in a narrow range and closing at 23,750.20, marking a marginal gain of 0.09%.

Global markets, including those in Europe and Asia, were closed for the Boxing Day holiday, which meant there were no external factors influencing the Indian market. As a result, the market remained quiet, with investors staying cautious during the holiday season.



Broader Market Performance:

As the benchmark indexes closed muted, the sentiment on the NSE turned negative, with 1,605 stocks declining, 1,226 advancing, and 90 remaining unchanged. This highlights a generally slow and indecisive trading day, with market participants adopting a more conservative approach.

Sectoral Performance:

The sectoral performance showed a mixed trend, with Nifty Auto gaining 0.84%, while sectors like Nifty Pharma and Consumer Durables saw modest increases. Other sectors like PSU Bank, Realty, Energy, Service, and IT posted slight gains, while Nifty Metal, FMCG, and Media declined, with Media dropping 1.46%.









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 2nd January:

  • The maximum Call Open Interest (OI) is observed at 24,000, followed by 23,800, while the maximum Put Open Interest is at 23,800, followed by 23,500.
  • On the downside, immediate support is seen at 23,500, followed by the 23,300-400 range. On the upside, resistance is expected at the 23,800–23,900 range, with 24,000 acting as the critical resistance level moving forward.

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

Alkem Laboratories received two re-assessment orders from the Income-tax Authority for the assessment years 2020-21 and 2022-23, disallowing part of the deduction under Section 80IE, resulting in a disputed amount of ₹375.14 crore. The company considers the dispute unfounded and plans to appeal the orders. Dive deeper

EPACK Durable Ltd.'s stock rose 5% to ₹501.65 on December 26, following the company’s clarification that discussions with a Chinese television manufacturer regarding investment in its subsidiary are in preliminary stages; year-to-date, the stock has surged 150%. Dive deeper



Vizhinjam International Seaport welcomed its 100th vessel, MSC Michela, within six months of operations. Karan Adani, MD of Adani Ports, highlighted the port’s automated handling and advanced technology. The port, India’s first mega transshipment terminal, saw 36 million metric tonnes of cargo handled in November, with a 21% YoY increase in container volumes. Dive deeper

UltraTech Cement has agreed to acquire 26% equity shares of Clean Max Sapphire Private Limited for ₹45.77 crore. This acquisition aims to meet the company’s green energy needs and optimize energy costs. Clean Max Sapphire, incorporated in December 2023, is setting up a 55 MW wind-solar hybrid power project in Karnataka. The acquisition is expected to be completed within 180 days. Dive deeper

BPCL shares gained 1.23% to Rs 295.60 after the company emerged as the lowest bidder for NTPC’s 1200 MW ISTS-connected solar PV power projects. BPCL secured a 150 MW capacity in the reverse auction. The project, with an estimated investment of Rs 756.45 crore, is expected to generate annual revenue of Rs 100 crore by producing 400 million units of clean energy over two years. Dive deeper

Share India Securities Limited will invest ₹59.50 crore in the Metropolitan Stock Exchange of India Limited (MSE) by acquiring 4.958% of its post-issue paid-up share capital. The investment will be completed within 60 working days. Dive deeper



Raymond Limited will hold meetings for Equity Shareholders and Unsecured Creditors on January 25, 2025, via video conferencing. The Equity Shareholders meeting is at 11:00 AM, followed by Unsecured Creditors at 12:00 noon. Voting rights are based on shareholding as of January 18, 2025, and outstanding amounts as of September 30, 2024. Dive deeper

RedTape Limited’s Board declared an interim dividend of ₹2 per share for FY 2024-25, with a record date of January 3, 2024. The Board also proposed increasing authorized share capital to ₹112.01 crore and a 3:1 bonus issue, subject to shareholder approval. Dive deeper

ACME Solar Holdings has secured ₹1,988 crore in financing from Power Finance Corporation (PFC) for a 300 MW Solar-Wind Hybrid Renewable Energy Project in Bikaner, Rajasthan, and Bhuj, Gujarat. Additionally, ACME Solar has won a 300 MW Solar Power Project under the SECI-ISTS XVIII scheme at a tariff of ₹3.05 per unit, with operations set to begin by June 30, 2025. Dive deeper

Sumitomo Mitsui Financial Group will infuse Rs 3,000 crore into SMFG India Credit Co. Ltd. through a rights issue, with an additional Rs 300 crore for SMFG India Home Finance Co. Ltd. This brings the total capital infusion for fiscal 2024 to Rs 4,300 crore. Dive deeper

Housing sales in seven major cities are expected to fall 4% in 2024 to around 4.6 lakh units, while sales value grew 16% to Rs 5.68 lakh crore, according to Anarock. The decline in sales is due to fewer new launches, impacted by election-related delays in approvals. Average housing prices rose 21%, which helped increase the overall sales value. Most cities saw a decline in sales, with Kolkata experiencing the largest drop of 20%. Dive deeper

Coffee planters face a 15% yield loss this season due to erratic weather, despite record-high prices. Heavy, uneven rainfall in Karnataka disrupted ripening in key districts like Kodagu and Chikkamagaluru. While coffee prices have surged due to global supply disruptions, yields are expected to be lower. Dive deeper

UltraTech has acquired a 32.72% stake in India Cements, increasing its total holding to 55.49%, making it a subsidiary. Following the acquisition, N Srinivasan and other promoters resigned, and UltraTech assumed control of the company, appointing four new directors. Dive deeper

NALCO signed a mining lease deed for the Utkal-D and Utkal E-Coal blocks to boost coal production to 4 MTPA, enhancing fuel security for its Captive Power Plant. The lease is valid until April 2051. Dive deeper

Welspun Corp announced that its associate, East Pipes Integrated Company for Industry (EPIC), signed contracts worth Rs 130 crore with two Saudi companies. The contracts, for manufacturing and supplying steel pipes, have a duration of seven months and will impact Q1 and Q2 of FY 2025-26. Dive deeper

EPFO added 13.41 lakh net members in October 2024, with 58.49% from the 18-25 age group and 2.09 lakh new female members. Maharashtra led with 22.18% of net additions. The data also shows growth in sectors like road transport, electronic media, and banking. Dive deeper

Shares of International Gemmological Institute (IGI) rose 10% to Rs 580.45 after acquiring 100% stakes in IGI Netherlands and International Gemmological Institute BV for USD 158.2 million to expand its business. IGI Netherlands focuses on diamond certification, while IGI BV specializes in diamond screening and gemology education. Dive deeper

What’s happening globally

WTI crude oil rose to $70.4 per barrel, driven by China’s stimulus measures and a US report showing a 3.2 million barrel drop in crude stockpiles. Crude is on track for a modest annual drop, with traders considering 2025 impacts from political and economic factors. Dive deeper



Japanese shares rose 1.1%, boosted by comments from BOJ Governor Kazuo Ueda, who refrained from signaling an interest rate hike. A report on Japan’s $735 billion FY 2025 budget also supported the market. Retail stocks surged, with J. Front Retailing jumping 9% on strong earnings. Toyota led gains, while Nissan and Honda rose amid merger talks. Dive deeper



Arabica coffee futures rose above $3.20 per pound, nearing the December 10 record of $3.50, amid concerns over Brazil’s weather affecting crop yields. Volcafe reduced its forecast for Brazil’s arabica production by 11 million bags, citing a continued deficit. Prices have surged 70% this year, driven by droughts and rising global demand. Dive deeper

China’s EV sales are set to surpass traditional car sales in 2025, with a 20% increase to over 12 million cars. Meanwhile, traditional car sales are expected to drop over 10%. China’s EV industry benefits from advanced technology, cost reductions, and secure supply chains, outpacing global competitors and reducing foreign-branded car market share to a record low of 37%. Dive deeper



US companies are defaulting on junk loans at the fastest rate in four years, with defaults reaching 7.2% in the 12 months to October 2024. This is due to high interest rates on loans taken during the low-rate pandemic period. Many defaults involve distressed loan exchanges, where terms are modified to avoid bankruptcy. Despite this, the high-yield bond market remains strong with tight spreads. Dive deeper

China is allowing local officials to invest in more areas using special government bonds, simplifying the approval process. This aims to boost growth amid sluggish domestic spending, with bonds now funding projects in sectors like IT, elderly care, and childcare. Dive deeper


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.


Mohammed Ali, Head of SME Business, Delhivery

“There has been a significant rise in consumption and supply from tier 2 and 3 cities. We are witnessing more brands emerging from these towns as local businesses seek to expand their reach beyond regional markets.”

“Over a third of our SMB business comes from smaller cities, with Vadodara, Raipur, and Thiruvananthapuram showing a 40% increase in e-commerce orders in the D2C market in 2024.”

“Our AI-driven RTO predictor, built on data from shipments handled, has reduced return risks by 25%, improving cash-on-delivery (CoD) operations and significantly lowering return impact on profit margins.” - Link

Pieter Elbers, CEO, IndiGo

“IndiGo expects to carry 112 million passengers in 2024, following the milestone of flying over 100 million passengers in 2023.”

“The arrival of A321 XLRs next year will help IndiGo to start longer-duration direct international flights.”

“We are on our way to becoming one of the global leaders in aviation, aligning with India’s vision to establish itself as an aviation hub.”- 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.

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