Key economic indicators
Actual on 16:00 on December 17
World economic indicators
|
Stocks
|
Change
|
|---|---|
|
🇮🇳 Nifty
|
- 1.41%
|
|
🇮🇳 Sensex
|
- 1.33%
|
|
🇮🇳 India VIX
|
+ 3.6%
|
|
🇺🇸 S&P 500
|
- 0.4%
|
|
🇺🇸 Nasdaq
|
+ 0.37%
|
|
🇺🇸 Dow Jones
|
- 0.56%
|
|
🇪🇺 Euro Stoxx
|
- 0.13%
|
|
🇨🇳 China A50
|
+ 0.7%
|
|
🇨🇳 DJ Shanghai
|
- 0.66%
|
|
🇬🇧 FTSE 100
|
- 0.31%
|
|
🇯🇵 Nikkei 225
|
- 0.71%
|
|
🇮🇩 IDX Composite
|
- 1.39%
|
|
🇸🇦 Tadawul All Share
|
- 1.22%
|
Top Gainers on Indian Stock Market
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Stocks
|
Change
|
|---|---|
|
Quess Corp
|
+ 7.21%
|
|
Mazagon Dock Shipbuilders
|
+ 5.44%
|
|
Borosil Renewables
|
+ 5.15%
|
|
Five Star Business Finance
|
+ 4.72%
|
|
Suzlon Energy
|
+ 4.64%
|
Top Losers on Indian Stock Market
|
Stocks
|
Change
|
|---|---|
|
Shriram Finance
|
- 5.09%
|
|
Blue Star
|
- 4.12%
|
|
Jyothy Labs
|
- 4.03%
|
|
Oil India
|
- 3.73%
|
|
L&T FINANCE
|
- 3.7%
|
News
Why Indian Banks Are Feeling the Heat
India’s banking system is grappling with its steepest liquidity deficit in nearly six months, and it’s not just a seasonal hiccup. According to IDFC First Bank, the RBI has been offloading dollars in the market since October, a strategy that inadvertently sucked liquidity out of the banking system. It hit a record low of ₹84.9337 per dollar on Tuesday, forcing the RBI to step in and potentially drain even more liquidity as it tries to prevent further currency slippage amidst a ballooning trade deficit and a surging greenback. Even after recent measures like a cash reserve ratio (CRR) cut and variable rate repo auctions, the outlook remains bleak. Add to that the usual end-of-year cash withdrawals for festive spending, and you’ve got a perfect storm of liquidity pressure. For now, banks are waiting for RBI to step in with fresh liquidity-boosting measures to decide whether the pressure eases or the squeeze gets tighter.
Nitco Shares Shine Bright with ₹105.40 Crore Order from Prestige Estates
Nitco’s stock had a moment of glory in early Tuesday trading, surging 5% to touch ₹147.55 on the BSE after securing a hefty ₹105.40 crore order from Prestige Estates Projects. The deal spans six months and involves supplying tiles, marble, and mosaics—a boost that has the market buzzing about this small-cap multibagger. Nitco expects an additional ₹104 crore in orders from Prestige Estates, based on current projects. Despite the recent losses, Nitco has been on an impressive run. The stock hit its 52-week high of ₹148.50 on December 12, 2024, a far cry from its low of ₹27.14 a year ago. For morning, Nitco’s meteoric rise seems to have no ceiling, though it remains to be seen how sustainable this rally will be amid its ongoing financial challenges.
Piramal Pharma Rises on Positive Call
A glowing report from JM Financial, initiated coverage with a “buy” rating and a ₹340 target price—a 36% upside from its previous close at ₹251. Piramal Pharma shares get a solid tailwind today, jumping 4.5% to ₹262.80 in early trade. JM Financial’s optimism stems from India’s booming CRDMO sector, where Piramal’s CDMO business is flexing its competitive muscle. The brokerage forecasts a 17% CAGR for the CDMO arm over the next three years, thanks to a CRO turnaround and high-potential assets, including one with a USD 100 million revenue projection. The global CRDMO industry is set to expand at a 9.1% CAGR, so JM Financial envisions a robust future for Piramal Pharma too: a 15% revenue CAGR, 23% EBITDA CAGR from FY 24-27, and free cash flows scaling to ₹4.8 billion by FY27. If the brokerage’s projections hold, Piramal Pharma’s ascent might just be getting started.
Embassy REIT Secures ₹1,000 Crore via NCDs, Sharpens Growth Focus
India’s first publicly listed real estate investment trust, Embassy Office Parks REIT, has locked in ₹1,000 crore through five-year non-convertible debentures (NCDs) carrying a 7.73% coupon. This marks another strategic move to streamline its debt profile, aiming to shave off 70 basis points in interest costs. The NCDs, secured against Embassy Express Towers in Mumbai and Embassy TechZone in Pune, garnered strong backing from heavyweights like Nippon MF, SBI Pension Fund, and HDFC Life. This offer received 55% of demand, which demonstrates investor’s confidence in Embassy REIT’s plan Embassy REIT’s expansive 51.1 million sq ft portfolio spans prime office markets like NCR, Chennai, Bengaluru, and housing 260 of the world’s top companies. This latest round of fundraising positions Embassy REIT to capitalize on opportunities in India’s thriving office market while keeping its debt strategy razor-sharp.
India’s Office Leasing Boom: 2024 Set to Break Records
India’s office leasing market is cruising towards a record-breaking year in 2024, with gross leasing volumes (GLV) expected to hit an impressive 83–85 million sq ft—a 13% surge from 2023’s peak. While 2025’s GLV might taper to 74–76 million sq ft, it’s still forecasted to soar past the 70-million-sq-ft mark for the fourth consecutive year. Only about 48 million sq ft of new office space is expected to roll out in 2024, tightening vacancy rates in major markets. While supply is projected to rebound in 2025, prime sub-markets will likely continue seeing squeezed vacancy rates. Notably, the country is expected to account for nearly 70% of the Asia-Pacific region’s net office space absorption—a staggering indicator of its regional dominance. Fresh leasing activity remains the market’s backbone, driven by new GCC entrants and domestic firms expanding operations. Pre-commitments have tripled compared to last year, with over 70% focused on prime sub-markets, signaling that premium locations are the gold standard for occupiers.
TARC Shares Dive After SEBI Orders Forensic Audit
TARC shares nosedived 10% on Tuesday, closing at ₹189.55 on the BSE, after SEBI ordered a forensic audit of the company’s financials for FY21 to FY23. This dramatic drop came hot on the heels of TARC’s exchange filing, where it disclosed receiving SEBI’s letter on Monday. The market regulator suspects that TARC’s handling of financial disclosures and transactions might have been detrimental to investors or the securities markets. TARC responded by pledging full cooperation with the audit and expressed confidence that the findings wouldn’t derail its growth trajectory or long-term value. In the latest quarter, TARC reported a staggering net loss of ₹67.36 crore, a stark reversal from the ₹1.06 crore profit in the same period last year. Despite these setbacks, TARC has delivered significant returns over the long term—up 42% in the past year.
Varun Beverages Expands Footprint with Lunarmech Acquisition, Shares Surge
Varun Beverages, PepsiCo’s bottling partner, saw its shares climb 1.7%, hitting an intraday high of Rs 657 on the BSE, after the company completed its acquisition of a 39.93% stake in Lunarmech Technologies. In a filing to the exchanges, Varun Beverages confirmed that the transaction was finalized on December 16, 2024. The move follows the company’s earlier announcement, when it revealed its board had approved the acquisition for a total consideration of Rs 200 crore. Lunarmech, which is now fully under Varun Beverages’ control, adds a new dimension to the company’s business strategy. The acquisition is part of a broader push to expand its operations, as Varun Beverages continues to show strong growth. In its latest earnings report, the company posted a 22.3% YoY jump in net profit, reaching Rs 628.83 crore, while revenues surged by 24.1% YoY to Rs 4,804.68 crore. Over the past year, Varun Beverages’ stock has surged by 48%, underscoring investor confidence in the company’s strong performance and strategic moves.
Overview
Indian equity markets continued their downward trajectory on Tuesday, December 17, with major indices Sensex and Nifty50 both experiencing significant losses. The Sensex dropped 1,064.12 points to 80,684.45, and Nifty lost 348 points, settling at 24,320.30. In intraday trading, both indices hit lows, with Sensex shedding 1.4% and Nifty falling by 1.5%.
There are strong concerns over FII selling speculation around China’s potential increase in its budget deficit in 2025 is causing fears of a slowdown in foreign institutional inflows (FIIs) into Indian markets. Though still speculative, this has added pressure on the market, particularly after FIIs turned net buyers following months of selling.
Also investors are awaiting the outcome of the U.S. Federal Reserve’s meeting, where a quarter-point rate cut is expected. However, uncertainty around the Fed’s rate strategy for 2025 persists and it set global markets were also under pressure. Asian stocks showed mixed performance, with Japan’s Nikkei dropping 0.2%, and South Korea’s Kospi falling 1.3%. Global uncertainty, particularly surrounding central bank decisions, contributed to a risk-off sentiment, with European stocks also facing declines. The rise in the VIX index, signaling increased volatility, suggests that Indian markets may continue to consolidate with potential for further downside.
Despite these signals ICICI Direct has forecast a significant upside for India’s Nifty index, with a target of 28,800 by 2025, signaling an 18% jump from its recent close of 24,336. The brokerage firm’s optimistic outlook is grounded in strong technical charts and historical trends, particularly the positive performance of the index following elections.
The Indian rupee is trading at 84.89 against the US dollar. While exporters like IT and pharmaceuticals may benefit from a weaker rupee, the increased cost of imports could negatively affect companies in sectors such as oil and gas.
Gold prices fell by 0.5%, at Rs 76,670 per 10 grams, while silver down 0.9% at Rs 90,333 per kilogram.
In the commodities space, oil prices softened, with U.S. WTI crude falling to $70.04 and Brent to $73.34 per barrel.