Indian market gains on positive global cues; Cochin Shipyard soars

The Indian stock market has seen positive movement for two consecutive days, although there remains uncertainty about its direction. The market is benefiting from favourable foreign cues and a rise in Asian markets.

The PMI index for industrial production in November dipped to 56.5 from 57.5 in October. This marks the lowest level in 11 months and follows the announcement of a sluggish GDP growth rate for the second quarter, which was the weakest in seven quarters. These figures raise concerns about the pace of economic growth.

The Reserve Bank of India's Monetary Policy Committee (MPC) will commence its three-day meeting tomorrow, with the outcome expected on Friday. Analysts anticipate that the repo rate will remain unchanged due to persistent inflation, which is currently at 6.2%. The RBI may, however, consider measures to improve credit availability by either reducing the Cash Reserve Ratio (CRR) or increasing open market operations.

Meanwhile, the GST Council will convene on 21st December, with discussions around the revision of rates for more than 150 items. Reports suggest an increase in taxes on tobacco products and soft drinks (cola) from 28% to 35%. There are also proposals to reduce tax rates for textiles under Rs 1,500 to 5%, with a new rate structure for textiles priced between Rs 1,500 and Rs 10,000 at 18%. Products priced above Rs 10,000 may be taxed at 28%, and the tax on notebooks could be reduced from 12% to 5%. Additionally, the GST on 20-litre bottles of drinking water may fall from 18% to 5%.

In the derivatives market, the Gift Nifty closed at 24,419 on Monday, rising slightly to 24,430 today, indicating that the Indian market is likely to open with marginal gains.

Global markets

The US market ended on a mixed note on Monday. The Dow Jones Industrial Average dipped by 128.65 points (0.29%) to 44,782.00, while the S&P 500 rose by 14.77 points (0.24%) to 6,047.15. The Nasdaq Composite gained 185.78 points (0.97%) to 19,403.95, reaching new highs. Tesla saw a 3.5% increase after some investors upgraded their ratings. Conversely, shares of Intel Corp. fluctuated, closing lower after the news of the CEO's departure. Intel's stock is down 54% this year.

US futures are slightly lower this morning, with the Dow falling by 0.07 points, the S&P 500 down by 0.03 points, and the Nasdaq down by 0.05 points.

The US 10-year Treasury yield decreased to 4.196%. The market is pricing in a 66% chance of a 0.25% rate cut by the Federal Reserve in December. If the November jobs report meets expectations (with 2.41 million new jobs and an unemployment rate of 4.2%), bond prices could rise, pushing yields higher.

European markets closed higher on Monday, despite ongoing political and budgetary challenges in France. The French bond risk premium has risen to levels similar to Greece's. The French index posted a marginal gain, but shares of Stellantis, the parent company of Jeep, fell 6.3% following the resignation of its CEO.

Asian markets are seeing positive movement today. Japan's Nikkei rose by 1.1%, South Korea's index gained 1.2%, and Australia's market increased by 0.7%.

Indian market

The Indian market experienced a relief rally on Monday, with major indices rising by over half a percent. The Sensex rebounded 1,000 points from the day's low. Financial institutions and domestic funds were active buyers, as they appeared to overlook concerns about GDP slowdown and declining vehicle sales, hoping for a market recovery.

Foreign investors were not major sellers, with a marginal net sale of Rs 238.28 crore. Domestic funds and financial institutions together bought shares worth Rs 3,588.66 crore. 

The broader market remained positive, with 2,467 stocks advancing and 1,600 declining on the BSE. On the NSE, 1,811 stocks gained and 1,047 declined. 

The Nifty closed up 144.95 points (0.60%) at 24,276.05, while the Sensex rose 445.29 points (0.56%) to 80,248.08. The Bank Nifty gained 0.10% (53.40 points) to close at 52,109.00. The Midcap index rose 1.08% to 57,000.85, and the Smallcap index climbed 1.04% to 18,845.05.

The real estate sector was the biggest gainer, while consumer durables, healthcare, auto, IT, metals, media, and pharma stocks also saw good gains. 

Market watchers believe that while the market has shown strength, a confirmed bullish trend would be validated only if the Nifty crosses 24,350. If it breaks this level, targets of 24,550–24,800 could be seen. On the downside, support is expected around 24,000–23,900.

Key stocks to watch

Cochin Shipyard shares rose 5% after securing a contract to maintain the Navy's Vikramaditya ship.  

Solar Industries announced a foreign order worth Rs 2,039 crore for the export of defence equipment.  

Indoco Remedies has signed an agreement with Clarity Pharma for the sale of over 20 products in the UK. 

Prico agreed to purchase the injection-moulded plastic component division of Sundaram Auto Components for Rs 215.3 crore.  

Swiggy is set to release its first earnings report since listing.  

KPI Green Energy has won a Rs 1,311 crore contract for a 300 MW solar plant from Coal India.

Adani Group shares were volatile on Monday, with early gains turning into losses by the end of the session. This was partly due to a 14% drop in shares of GQG Partners, which holds significant stakes in Adani companies. The drop followed a downgrade by UBS. GQG shares, however, rose 2% today.

Gold update

Gold prices fell by $11.10 per ounce to $2,639.00, although they rose slightly this morning to $2,643.  

Silver gained to $30.52 per ounce.  

Crude oil saw a slight increase, with Brent crude trading at $71.91, while WTI crude was at $68.15.  

The US Dollar rose 0.71% to 106.45, and the Indian Rupee weakened to ₹84.70 against the dollar. The rupee remains stronger by 6% relative to its trade-weighted index.  

Cryptocurrencies saw a decline, with Bitcoin falling below ₹96,000 to ₹95,800 and Ether just under $3,640.

Industrial metals excluding aluminium posted losses on Monday. Copper dropped 0.20% to $8,874.13 per tonne, while aluminium rose 0.36% to $2,603.25 per tonne. Other metals like zinc, lead, and nickel all saw declines.

Market indicators

- Sensex: 80,248.08 (+0.56%)  
- Nifty50: 24,276.05 (+0.60%)  
- Bank Nifty: 52,109.00 (+0.10%)  
- Midcap 100: 57,000.85 (+1.08%)  
- Smallcap 100: 18,845.05 (+1.04%)  
- Dow Jones: 44,782.00 (-0.29%)  
- S&P 500: 6,047.15 (+0.24%)  
- Nasdaq: 19,403.95 (+0.97%)  
- Dollar (₹): 84.70 (+₹0.21)  
- Dollar Index: 106.45 (+0.71)  
- Gold (ounce): $2,639.00 (-$11.10)  
- Crude (Brent): $71.91 (-$0.07)