Indian frontline benchmarks Nifty 50 and Sensex closed the day higher on December 26 as fresh buying was seen across all the sectors but IT, Media and PSU Bank index. Improvement in some of the Asian stocks helped rally on Dalal Street post cooler-than-anticipated US inflation data renewed hopes regarding the interest rate cuts by the US Federal Reserve in 2024. Since Indian equities closed the day higher, among Nifty 50 stocks, around 41 stocks ended higher as Divi’s Laboratories, Hero MotoCorp and Adani Enterprises increased in the range of 4.55% – 2.16%. On the contrary, Bajaj Finance, Bajaj Finserv and Infosys were top losers as they declined in the range of 1.65% – 0.65%.
On Tuesday, S&P BSE Sensex closed by rising ~229.84 points, or ~0.32% higher to end at 71,336.8, and NSE Nifty went up by ~91.95 points, or ~0.43%, at ~21,441.35 levels. Meanwhile, Nifty Mid Cap 100 and Small Cap 100 closed the day higher too. Finally, high-beta Nifty Bank closed ~0.49% higher to sit at ~47,724.85 levels.
Given that Indian equities closed the day higher, they extended their winning streak to 3rd day post significant buying momentum in power, utilities, oil and gas and banking shares. Coming to the foreign currency movements, rupee fell ~3 paise to end at 83.19 (provisional) against the USD as a result of strong American currency and outflow of the foreign finances.
However, several forex traders stated that positive equity market sentiments and softness in the prices of crude oil gave a cushion and limited the currency’s fall.
Coming to the stock-specific movements, Adani Green Energy Ltd ended the day higher with its 5.5% increase. Adani Green Energy announced its plans to raise ~INR9,350 crore ($1.125 billion) with the help of issue of equity warrants on preferential basis to the promoter group. Warrants are expected to be issued at INR1480.75 per share and this money will be used for deleveraging and for capex purposes.
Gold prices increased for the 3rd straight session Tuesday, due to lower Treasury yields on anticipations that the US Fed should decrease the interest rates in the next year. Trading remained thin on the day post-Christmas, as several markets were closed for public holidays. In the week ahead, the trading is anticipated to remain subdued given the holidays.
Read Also: