Nifty50 13,558 ▲ 44 (+0.3%)
Sensex 46,253 ▲ 154 (+0.3%)
Today proved to be yet another ‘yo-yo’ session for the markets. The benchmark indices dipped into the negative but bounced back and closed in the green.
Amongst the Nifty sectoral gainers, Media (+2%) and PSU Bank (+1.7%) gained the most whereas, Auto (-1%) and Realty (-0.8%) dropped. Selling accentuated in auto stocks and realty shares saw profit booking after the recent rally.
Top gainers (Nifty50)
| ONGC | ▲ 5.9% |
| Larsen & Tubro | ▲ 4.2% |
| Cipla | ▲ 4.1% |
Top losers (Nifty50)
| Eicher Motors | ▼ 2.5% |
| Hero Motorcorp | ▼ 2.2% |
| M&M | ▼ 2.0% |
Here are the top stories for the day.
Wholesale Inflation on the rise
- The wholesale price index for November stood at 1.55% (vs 1.48% in October), the highest since February 2020. The rise is attributed to the increasing cost of manufacturing goods, whereas food prices eased.
- Inflation for manufactured products rose to 2.97% (vs 2.12% in October) while food inflation dropped to 3.94% (6.37% in October). The market awaits the data on consumer price inflation, which is expected later today. The street estimates are of 7.1% (7.61% in October).
Cipla surges on dispute settlement
- Shares of Cipla jumped +4.1% as the company settled a patent litigation with Celgene in the US. Cipla will now be able to sell limited quantities of gRevlimid capsules from FY2023 to FY2026 and unrestricted quantities thereafter.
- The markets seem to be factoring in the present value of incremental sales. As per reports, the cancer drug saw annual sales of $9 billion in CY19 in the US.
L&T gains on order wins
- The infra giant was among the top gainers in the Nifty50 today after it announced several orders wins ranging from ₹1,000-2,500 crore in its ‘buildings and factories’, and ‘power transmission and distribution’ businesses. The stock has gained ~35% since November, compared to the Nifty50 which has risen 16%.
- The size and frequency of recent orders have spurred investor interest in L&T (+4.2%).
Ola bets big on e-scooters
- The Bengaluru-based ride-hailing firm plans to invest ₹2,400 crore to set up a factory for electric scooters in Tamil Nadu. The company claims that with an annual capacity of 20 lakh units, the factory would be the largest in the world.
- The scooters will be in direct competition with products from the EV arms of Hero MotoCorp (-2.2%), Bajaj Auto (-1.1%) and TVS Motor (+0.7%).
Action Construction gains
- The pick-up in infra-construction projects and increasing demand for commodities augur well for listed construction and material-handling equipment companies such as Action Construction Equipment (+7.1%). The stock has gained nearly 60% in November 2020.
- The company management had recently stated that they see 25-30% revenue growth and double-digit margins in FY22 thanks to a healthy order book and improving demand scenario for user industries.
Closing bell
Over the last several trading days, the markets seem to be showing signs of weakness initially but gather steam in the second half. It is similar to a relay race where the baton is being passed from one sector to the other to pull the markets up. Banks and metal stocks were the winners in November and FMCG, PSU banks and media stocks have picked up pace in December.
While the foreign flows are positive and helping the markets to rise, traders are eyeing the consumer inflation data to gauge the direction that interest rates would take going forward.
The Mrs. BectorFood IPO goes live tomorrow. To know more about the company and the public issue, click here.
Good to know
What are support and resistance?
Support is a level from which prices are expected to bounce upwards because of high buying interest. In contrast, prices are expected to drop from a resistance because of high selling pressure at that level.
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