Key economic indicators
Actual on 16:00 on December 19
World economic indicators
|
Stocks
|
Change
|
|---|---|
|
🇮🇳 Nifty
|
– 2.95%
|
|
🇮🇳 Sensex
|
– 1.17%
|
|
🇮🇳 India VIX
|
+ 1.86%
|
|
🇺🇸 S&P 500
|
- 2.95%
|
|
🇺🇸 Nasdaq
|
- 3.56%
|
|
🇺🇸 Dow Jones
|
- 2.58%
|
|
🇪🇺 Euro Stoxx
|
- 1.27%
|
|
🇨🇳 China A50
|
- 0.32%
|
|
🇨🇳 DJ Shanghai
|
+ 0.7%
|
|
🇬🇧 FTSE 100
|
– 0.98%
|
|
🇯🇵 Nikkei 225
|
- 0.8%
|
|
🇮🇩 IDX Composite
|
- 1.84%
|
|
🇸🇦 Tadawul All Share
|
- 0.57%
|
Top Gainers on Indian Stock Market
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Stocks
|
Change
|
|---|---|
|
Kfm Technologies
|
+ 7.55%
|
|
Chennai Petroleum Corporation
|
+ 5.51%
|
|
IPCA Laboratories
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+ 5.4%
|
|
Mtar Technologies
|
+ 4.57%
|
|
Dr Reddys Laboratories
|
+ 3.94%
|
Top Losers on Indian Stock Market
|
Stocks
|
Change
|
|---|---|
|
Shriram Finance
|
- 5.1%
|
|
Blue Star
|
- 3.97%
|
|
Jyothy Labs
|
- 3.76%
|
|
LIC Housing Finance
|
- 3.6%
|
|
SBFC Finance
|
- 3.55%
|
News
Settlement with Genesis Sparks Investor Optimism about SpiceJet
On Thursday, SpiceJet’s shares surged by almost 9% following the airline’s announcement of a settlement with Genesis regarding a $16 million dispute. As part of the agreement, SpiceJet will pay $6 million in cash while Genesis will acquire $4 million worth of SpiceJet equity at â‚ą100 per share. For investors, this settlement appears to signal the airline’s determination to regain financial stability. The market responded enthusiastically, with SpiceJet stock climbing to â‚ą61.30 during the day before stabilizing at â‚ą60.67, up by 7.8%. Stock has bounced back by 33% from its 52-week low of â‚ą46. The deal marks another milestone in SpiceJet’s efforts to restore stability, which has been a key focus amid ongoing financial and operational challenges. The agreement will not only save costs but also result in all ongoing litigations with Genesis being withdrawn, freeing up the airline from potentially prolonged legal battles. The settlement, coupled with Genesis’s equity investment, underscores confidence in SpiceJet’s recovery potential.
Infosys Boosting Bengal’s IT Ambitions
Infosys, India’s second-largest IT services company, has added a significant chapter to West Bengal’s IT growth narrative by inaugurating a cutting-edge development centre (DC) in New Town, Kolkata. This expansive 320,000 sq. ft. facility, with an investment surpassing â‚ą426 crore, is designed to accommodate over 4,000 employees in a hybrid work environment, combining both in-office and remote work arrangements. For Infosys, this move signifies its growing footprint in Eastern India. Unveiled by West Bengal Chief Minister Mamata Banerjee, the event was marked as a “historic” moment for the state’s IT ambitions. Banerjee called it a “New Year gift” to Bengal, emphasizing how the facility strengthens the state’s position as a leading IT hub in India. Banerjee also spotlighted complementary developments, including a “Silicon Valley” project spanning 200 acres in New Town. This ambitious venture, with an investment of â‚ą27,000 crore, is expected to generate 75,000 jobs. Additionally, she announced plans for a cable landing station to bolster connectivity for IT firms, reinforcing the state’s tech-friendly ecosystem. For Bengal, it’s a signal to the world: the state is ready to innovate, grow, and lead in the IT sector.
Solarium Green Energy Prepares for IPO
Solarium Green Energy Limited is preparing for its public debut as the Bombay Stock Exchange (BSE) approves its Draft Red Herring Prospectus. The SME IPO is expected to launch shortly, offering as many as 5,500,000 equity shares, each with a face value of ₹10. As the company ventures into the public domain, the IPO marks not just a financial milestone but also a strategic move to expand its foothold in the ever-growing solar energy market. As of September 2024, Solarium is overseeing 41 ongoing projects totaling ₹165.29 crore in value, while new tenders worth ₹252.86 crore are currently up for bidding. This growing pipeline underscores the company’s leadership in India’s renewable energy space. The company’s financials paint an optimistic picture. For the fiscal year ending March 31, 2024, Solarium reported revenue of ₹177.80 crore, EBITDA of ₹23.78 crore, and a net profit of ₹15.59 crore. Its track record between FY22 and FY24 includes 8,506 residential rooftop projects, 152 commercial and industrial (C&I) projects, and 8 government ventures.
Yash Highvoltage Lights Up Listing Day with Multibagger Gains
Yash Highvoltage made a sizzling debut on the BSE SME, listing at ₹277.40—an impressive 90% premium over its IPO issue price. But the fireworks didn’t stop there. The stock soared further to ₹291.25, locking in its upper circuit and delivering a jaw-dropping 99.49% gain for investors on day one. For a company deeply entrenched in this niche but crucial industry, today’s blockbuster listing underscores not just investor confidence but also the potential for Yash Highvoltage to spark brighter innovations in the energy sector. Yash Highvoltage specializes in transformer bushings, offering a wide range of products such as Oil-Impregnated Paper (OIP), Resin-Impregnated Paper (RIP), and Resin-Impregnated Synthetic (RIS) condenser bushings.
Market Mayhem: â‚ą9.65 Lakh Crore Vanishes as Sensex Slumps 2,915 Points in Four Days
The stock market’s recent performance has left investors reeling, with wealth worth â‚ą9.65 lakh crore wiped out over just four days. The BSE Sensex tumbled 2,915 points—or 3.54%—during this period, with Thursday’s 964-point plunge (1.20%) taking the index to 79,218.05. Meanwhile, the market capitalization of BSE-listed firms dropped sharply to â‚ą4,49,76,402.63 crore, adding to the gloom. IT stocks bore the brunt, with the BSE Focused IT index tanking 1.20%. In contrast, defensive plays like Sun Pharma, Hindustan Unilever, and Power Grid provided some relief, emerging as rare gainers in the chaos. Midcap and small-cap indices weren’t spared either, declining 0.30% and 0.28%, respectively. Foreign Institutional Investors (FIIs) offloaded Indian equities worth â‚ą1,316.81 crore on Wednesday, further pressuring domestic markets.The sell-off, triggered by negative global cues, was exacerbated by the US Fed’s hawkish commentary, which dampened hopes for rate cuts in 2024. Broad-based selling followed the Fed’s hawkish stance, fueling concerns over tightening liquidity and economic uncertainties.
Micron Shares Dive 15% on Weak Outlook Despite AI Chip Boost
Micron Technology took a heavy hit, with shares plunging 15% in premarket trading on Thursday after the company issued a grim forecast. The surge in sales of AI-related chips was overshadowed by weak demand for PCs and smartphones, causing concern among investors. While Micron sees only modest smartphone growth in 2025, global PC shipments dropped another 1.3% in Q3, according to Gartner. On the brighter side, revenue from high-bandwidth memory (HBM) chips—crucial for AI systems—more than doubled sequentially, highlighting an opportunity in data center investments expected to grow in 2025. Despite a 22% rise in Micron’s stock this year driven by AI chip demand, analysts remain cautious. At least six brokerages slashed their price targets post-earnings, reflecting tempered expectations.
Airtel Clears Spectrum Dues with a Massive â‚ą3,626 Crore Prepayment
Bharti Airtel continues its streak of cleaning up financial baggage, announcing on Thursday a prepayment of ₹3,626 crore to the Department of Telecom. This move wipes out all its spectrum liabilities from the 2016 auction, effectively closing the chapter on dues with interest rates above 8.65%. The telecom giant reported a stellar Q2 FY25 performance with profits surging 168% year-over-year to ₹3,593.20 crore. Revenues reached ₹41,473.30 crore, reflecting a 12% increase, fueled by robust growth in India and consistent progress in Africa. Operating profits (EBITDA) clocked in at ₹21,846.3 crore, underscoring robust operational efficiency.This isn’t their first financial housecleaning effort. Earlier in September, they shelled out ₹8,465 crore for the same 2016 spectrum dues, which had carried an interest rate of 9.3%. The company also paid off ₹7,904 crore in June to settle spectrum liabilities from auctions dating back to 2012-2015, where interest rates soared to 9.75% and 10%.
IOL Chemicals Soars on Stock Split Announcement
Shares of IOL Chemicals & Pharmaceuticals surged over 8% in morning trade on Thursday as investors rallied behind the company’s announcement of a potential stock split. IOL Chemicals & Pharmaceuticals, a prominent player in the pharma and specialty chemicals space, is renowned as the world’s largest producer of Ibuprofen, commanding a ~30% global market share. The stock opened slightly higher at ₹406 on the BSE, compared to its previous close of ₹405.35, and quickly climbed to an intraday high of ₹441. This spike comes ahead of a pivotal board meeting scheduled for Friday, December 27, where the company will deliberate on subdividing its equity shares with a face value of ₹10 each. To maintain compliance, the company has also closed its trading window for insiders, effective from December 19 to December 29. With its robust portfolio and the potential stock split, IOL is clearly signaling its intent to enhance shareholder value and expand market accessibility. Investors are already taking notice, as reflected in the stock’s bullish movement.
Asian Central Banks Brace for Tough Choices Amid Dollar Surge
The Federal Reserve’s hawkish tone, despite its recent rate cut, has triggered a selloff in Asian currencies. The Bloomberg Asia Dollar Index slid 0.4% on Thursday, highlighting the dollar’s broad strength. The Federal Reserve’s decision to cut rates, paired with its renewed focus on inflation, has shifted market dynamics. Chair Jerome Powell acknowledged that their year-end inflation projections have faltered, suggesting tighter monetary conditions ahead. Bank Indonesia has openly intervened in domestic markets, signaling a strong stance to traders.The Reserve Bank of India has used both offshore and onshore mechanisms to stabilize the rupee but has refrained from public commentary. Also, many expect the yuan to face further challenges in 2025, especially amid the looming possibility of another US-China trade war. The region’s currencies have collectively shed nearly 4% against the dollar this year, even as the Fed shifted to rate reductions.
SEBI Tightens SME IPO Rules, Reforms Merchant Banking, and Eases Investment Trust Norms
India’s market regulator, SEBI, has unveiled sweeping changes to strengthen investor protection and streamline market operations. To safeguard investors and maintain the accessibility of SME IPOs for informed participants, SEBI has increased the minimum application amount from ₹1 lakh to ₹2-4 lakh. Promoters face tighter controls on share sales, with a limit of 20% of their holdings per IPO and phased lock-in periods for excess holdings. Furthermore, the proceeds from the IPO allocated for general corporate purposes are limited to either 15% of the total amount raised or ₹10 crore, whichever is lower. SEBI also has introduced stricter qualifications and financial thresholds for merchant bankers. Both categories must maintain liquid net worth equal to 25% of their minimum requirement and meet cumulative revenue targets over three years. Sponsors can now transfer locked-in units within their group, while REITs can invest in unlisted companies providing ancillary services, subject to conditions. SEBI also has broadened the definition of unpublished price-sensitive information (UPSI) and introduced a two-day window for event updates.
Overview
Wall Street managed a cautious bounce on Thursday, clawing back some of Wednesday’s brutal losses. After the Fed’s latest projections flipped expectations on rate cuts and stoked inflation worries, the markets got a reality check. A tiny 0.4% gain on the S&P 500 and a 194-point lift for the Dow feel like baby steps compared to Wednesday’s 2.9% drop in the S&P and the Dow’s jaw-dropping 1,100-point tumble.
Indian equity markets were caught in a tailspin on Thursday, with the Sensex plunging 964 points and the Nifty dropping 247 points by the closing bell. Sun Pharma and Cipla managed to stay afloat, but heavyweights like Asian Paints and Grasim Industries dragged the indices deeper. Even smaller indices couldn’t dodge the storm: the BSE Mid Cap stayed flat, and the Small Cap dipped 0.6%. Most sectors mirrored Wall Street’s gloom, with banking, IT, and capital goods stocks taking the brunt. Meanwhile, healthcare stocks provided a rare glimmer of green amid a sea of red.
This is now four straight sessions of red for Indian markets, leaving the Nifty more than 9% off its September peak.
Diving into numbers, the Nifty’s trailing P/E ratio sits at 22.6x, right on its three-year average. But things get frothy in smaller segments—mid-cap and small-cap indices are trading at hefty premiums of 32% and 18%, respectively, over their three-year averages. That’s not sustainable, especially as foreign institutional investors (FIIs) are reallocating funds to Chinese equities, pulling ₹45,974 crore out of Indian markets in November alone.
It’s not just equities feeling the pressure. Gold with a one-month low before bouncing back 0.6% to $2,603.60 per ounce, while silver and palladium made modest gains. Meanwhile, oil prices stabilized after a two-day drop, with Brent crude remaining above $73 per barrel.