A range-bound day

Nifty50: 17,166 ▲+183.7 (+1.0%)
Sensex: 57,684 ▲+619.9 (+1.0%)

Fertiliser stocks jump on subsidy buzz, while Steel Strips Wheels hits upper circuit 

• The markets bounced back today, after the recent losing streak. 
• 35 stocks from the Nifty50 pack advanced. 
• Among the Nifty sectoral indices, PSU Bank (+2.6%) and Metal (+2.3%) were the top gainers. 
• Whereas, Pharma (-1.6%) was the only loser.

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Fertiliser stocks jump on subsidy buzz

CHAMBLFERT (NSE): ₹395.5 ▲31.5 (8.6%), GSFC (NSE): ₹ 115.7 ▲4.1 (3.7%)

The government reportedly plans to double the fertilizer subsidies to avoid any shortages this year. These subsidies are given to financially support the companies who sell fertilizers below-market rates. 

 This would be the third such increase this year and the revised figure of ₹1.55 lakh crore is double the amount initially budgeted for it. Fertiliser prices have gone up sharply due to the rise in prices of coal and natural gas, which are used in the manufacturing process. Shares of fertilizer companies reacted positively to the buzz.

SSWL hits upper circuit on strong sales growth

SSWL (NSE): ₹ 777.7 ▲37 (4.9%)

Shares of alloy wheel maker Steel Strips Wheels (SSWL) were locked at upper circuit as it reported a sharp 83% year-on-year rise in its revenue in November. The growth in the domestic market was mainly driven by the truck and passenger car segments, in which sales were up 82% and 47%, respectively. 

Meanwhile, shares of SSWL’s clients such as Tata Motors, Maruti, Eicher Motors rose nearly 3% today. SSWL’s domestic sales growth could be a lead indicator for some of these automakers’ sales in December and the coming months. 

Tega IPO receives strong interest

On day 1, the mining equipment component maker’s IPO was oversubscribed more than 4 times. Retail investors flocked towards the public issue with the retail portion being oversubscribed more than 7 times. 

In comparison, India’s largest private health insurer Star Health continues to receive lukewarm response. On Day 2, this IPO was subscribed around 20%. Meanwhile, wealth management company Anand Rathi will launch its ₹659 crore IPO tomorrow. You can apply for these IPOs on Upstox.  

Closing bell

While broad-based buying was witnessed today, Nifty50’s movement was confined within yesterday’s trading range (high and low). For directional cues, traders would prefer to wait-and-watch for a decisive breakout from this range. Meanwhile, the November PMI manufacturing hit a 10-month high. However, it may not be fully capturing the potential impact of the new virus variant. Gradually, traders could turn their attention to the bank stocks in the run-up to the RBI interest rate decision next week. 

Good to know

What is manufacturing PMI ?

The manufacturing purchasing manager index is an indicator of a country’s manufacturing sector. This is based on the survey of purchasing managers of companies. The survey captures these managers’ response to new orders, output, employment and inventories. A PMI above 50 represents expansion and a PMI reading below 50 means contraction. Traders and investors track PMI because it reveals a change in business conditions and sentiments, which could impact the stock markets movement.