Market snaps 4-day losing streak; Nifty regains 18,600 mark; NSE VIX below 14 mark

8 Dec 2022 , 05:04 PM

The equity barometers snapped four-day losing streak on Thursday, after Bhartiya Janata Party (BJP) cemented its lead in the Gujarat Assembly polls. Investors cheered after election trends showed that incumbent BJP will form government in Gujarat, brightening prospects of the party retaining its power at the Centre in 2024. The barometer index, the S&P BSE Sensex advanced 160 points or 0.26% to 62,570.68. The Nifty 50 index added 48.85 points or 0.26% to 18,609.35. Axis Bank (up 2.71%), ICICI Bank (up 1.02%) and Infosys (up 0.93%) pushed the indices higher. The Nifty 50 index reversed from the days low of 18,536.95 in early trade and managed to settle above the 18,600 mark. Trading was volatile due to expiry of weekly index options on the NSE. In the broader market, the S&P BSE Mid-Cap index gained 0.43% while the S&P BSE Small-Cap index advanced 0.32%. The Nifty Bank index hit a record high today at 43,640.90. Bank of Baroda (up 6.18%), PNB (up 4.42%) and Federal Bank (up 2.91) rallied. The market breadth was positive. On the BSE, 1,853 shares rose and 1,634 shares fell. A total of 132 shares were unchanged. The NSEs India VIX, a gauge of markets expectation of volatility over the near term, fell 4.83% to 13.40. Assembly Elections Results: The votes polled in assembly elections in Himachal Pradesh and Gujarat are being counted by the Election Commission of India (ECI) today, 8 December 2022. In Gujarat, the ruling BJP is all set to retain power in the state for a record 7th time. As per the latest results, BJP has won 93 seats and leading in 64 seats. BJP has been in power in Gujarat since 1995. The Congress party was seen finishing a distant second – it won 7 seats and was leading in 9 others, while the Aam Aadmi Party won 3 seats and leading in 2 seats. In Himachal Pradesh, Congress has won 29 seat whereas it is leading in 10. BJP has won 16 seats and is leading in 10. Independent candidates won 3 seats. The assembly elections in Himachal Pradesh were held in a single phase on 12 November 2022. The assembly elections in Gujarat were held in two phases – on 1st and 5th of December 2022. Numbers to Track: The yield on Indias 10-year benchmark federal paper rose to 7.289 as compared with 7.269 at close in the previous trading session. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.44, compared with its close of 82.47 during the previous trading session. MCX Gold futures for 3 February 2023 settlement added 0.12% to Rs 54,050. The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, was up 0.25% to 105.36. The United States 10-year bond yield rose 1.16% to 3.447. In the commodities market, Brent crude for February 2023 settlement rose 64 cents or 0.83% to $77.81 a barrel. Global Markets: Shares in Europe and Asia mostly edged lower on Thursday as investor nervousness continued over the state of the global economy and inflation. The U.S. Federal Reserve is expected to issue a 50 basis point interest rate hike next week. While that would be a smaller increase than recent rate hikes, investors are increasingly concerned about whether the central bank can avoid a recession next year in its attempt to squash inflation. Meanwhile, Hong Kongs Hang Seng index surged on Thursday, bucking the trend in the region as a local news outlet reported the city is considering lifting its outdoor mask rule. Japans economy saw an annualized quarterly contraction of 0.8% in the third quarter. The governments first preliminary estimate released in November was a 1.2% decline. In US, the S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserves monetary policy tightening might feed through into corporate America. Stocks in Spotlight: Hindustan Unilever (HUL) fell 0.23%. The company has entered into definitive documents to acquire 19.8% shareholding of Nutritionalab, a private limited company incorporated in India. Nutritionalab is engaged in health and wellbeing (vitamins, minerals and supplements). HUL will acquire the stake for Rs 70 crore. JSW Steel rose 0.78%. The steel majors standalone crude steel production in November 2022 stood at 16.90 lakh tonnes, registering a growth of 16% YoY. HCL Technologies shed 0.38%. The company announced a new collaboration with Intel Corporation and Mavenir to develop and provide scalable private 5G network solutions for communication service providers (CSP) and broader cross-vertical enterprises. Oil and Natural Gas Corporation (ONGC) added 1.31%. ONGC has signed a MoU with global petroleum giant Shell for cooperation in carbon capture, utilization and storage (CCUS) studies. The MoU is aimed at developing carbon capture, utilisation and storage, or CCUS/carbon capture and storage (CCS) as an emissions mitigation tool for combating climate change and injecting carbon dioxide (CO2) for geological storage as well as enhanced oil production from mature fields of ONGC. Talbros Automotive Components surged 9.26%. The company said that it received a new multiyear order worth Rs 60 crore in the heat shield business from a passenger vehicle OEM in India. Lumax Industries surged 4.77%. The company announced that its board has approved setting up greenfield project at Chakan, Pune (Maharashtra) with capital outlay up to Rs 175 crore for Phase 1. This project will cater to the new orders received from OEM customers for advance lighting solutions. The company said that capex will be funded by mix of debt and internal accruals and peak annualized turnover is expected of Rs 600 crore post commissioning. The project is expected to be commissioned by Q2 FY24. Eveready Industries India jumped 4.91%. The company announced that its board has approved the appointment of Bibek Agarwala, as the chief financial officer (CFO) and key managerial personnel of the company with effect from 14 February 2022. Dredging Corporation of India added 2.79%. The company announced that it has secured a reclamation dredging contract worth about Rs 60 crore from Numaligarh Refinery (NRL). Macrotech Developers gained 1.38%. The real estate developer said that it launched a qualified institutional placement (QIP) issue, consisting of an offer for sale to achieve minimum public shareholding. The floor price of the QIP issue is fixed at Rs 1,022.75 per equity share. The floor price is set at a discount of 4.17% to Wednesdays closing price of Rs 1,067.30 per share. Powered by Capital Market – Live News