The Indian equity markets ended in the red on Monday, December 9, due to significant weakness in FMCG stocks and heavyweights like Reliance Industries. The Nifty 50 declined by 0.31% to close at 24,609, while the Sensex slipped 0.23%, settling at 81,520.

Despite the losses in benchmark indices, midcap and small-cap stocks continued their bullish momentum. The Nifty Midcap 100 rose by 0.51%, marking its seventh consecutive session of gains, while the Nifty Smallcap 100 climbed 0.19%, achieving its twelfth straight session of growth.

Sectoral Performance Highlights

• The Nifty FMCG index was the worst performer, dropping 2.22%, primarily due to weak updates from Godrej Consumer Products and urban demand concerns.
• Metals emerged as the standout sector, with the Nifty Metal index gaining 0.62%, buoyed by expectations of additional Chinese economic stimulus measures.

Stock Highlights

• Among FMCG stocks, Godrej Consumer Products fell 8.7%, reaching an 11-month low. Other key players, such as Tata Consumer Products, Marico, and HUL, also suffered significant losses.
• In the private banking sector, HDFC Bank provided some relief, rising 0.76%, while Axis Bank and ICICI Bank ended with minor losses.
• Reliance Industries and State Bank of India saw declines of 1.3% and 0.7%, respectively.

Global Markets and China's Stimulus Efforts
Asian markets showed mixed performance, with Hong Kong's Hang Seng index surging 2.76% after China's leadership announced plans to adopt a more relaxed monetary policy for 2025.

China, the world’s second-largest economy, faces ongoing challenges, including weak domestic consumption, a struggling property sector, and rising government debt. Recent stimulus measures, such as interest rate cuts and removal of homebuying restrictions, aim to stabilize growth.

Economists, however, warn that direct fiscal stimulus targeting domestic consumption will be crucial for sustained economic recovery.

Impact of Global Cues
In India, the rise in oil prices, coupled with investor caution ahead of key events like India and US CPI data and the ECB policy decision, dampened market sentiment.

FMCG Sector Under Pressure
The FMCG sector faced a challenging day, with weak mid-quarter updates and margin pressures from rising commodity costs. Godrej Consumer Products's forecast of sustained weak demand further heightened investor concerns, driving broad-based sell-offs in the sector.

Top Stock Market Highlights: Mergers, Acquisitions, and Key Developments

Shree Renuka Sugars: Merger Approval Boosts Prospects
Shree Renuka Sugars surged in today’s trade after the National Company Law Tribunal (NCLT) approved the merger of its subsidiaries — Monica Trading, Shree Renuka Agri Ventures, and Shree Renuka Tunaport — into the parent company. This consolidation is expected to enhance operational efficiency and streamline its business structure.

RailTel Corporation of India: Multiple Work Orders Secured
RailTel rose following the receipt of multiple work orders worth ₹29.6 crore. The highlights include:

• A ₹13.4 crore project to provide 4G LTE-R infrastructure for South Central Railways.
• A ₹16.2 crore contract from the Employees Provident Fund Organisation (EPFO) to implement MPLS services across 140 locations. These developments solidify RailTel's position in the telecom and IT solutions space.

Manappuram Finance: Downgrade Concerns
Geojit BNP Paribas downgraded Manappuram Finance from 'Buy' to 'Sell,' setting a reduced target price of ₹152 per share. The brokerage cited regulatory issues affecting its assets under management (AUM) growth and projected net interest income (NII) growth at a modest 6.5% CAGR over FY25-26.

Flipkart: Preparing for IPO
Flipkart, valued at $36 billion, has shifted its domicile from Singapore to India as part of preparations for a public listing. The Walmart-owned company plans to launch its IPO by late 2025, signaling significant developments in India's e-commerce space.

Shyam Metalics and Energy: Robust Sales Growth
Shyam Metalics reported significant year-on-year (YoY) sales growth in November:

• Stainless steel sales rose 51% to 6,064 MT.
• Aluminium foil sales increased 30% to 2,018 MT.
• Speciality alloy sales grew 43%, while carbon sales advanced 15%.

Styrenix Performance Materials: Expansion via Acquisition
Styrenix hit an all-time high of ₹2,895 as its board approved the $20 million acquisition of INEOS Styrolution (Thailand). This move expands its market presence in engineering polymers and strengthens its footprint in Southeast Asia.

Hyundai Motor India: EV Charging Infrastructure Plans
Hyundai announced plans to establish 600 EV fast-charging stations across India over the next seven years, with 50 stations expected to be operational by the end of 2024.

Biocon: Regulatory Challenges
Biocon shares dropped sharply after receiving an Establishment Inspection Report (EIR) with Voluntary Action Indicated (VAI) status from the US FDA for its API facility in Bengaluru.

Other Stocks in News

1. Servotech Power Systems: Partnered with Germany's LESSzwei GmbH to develop solar-powered EV charging infrastructure for micromobility solutions in urban areas.
2. Welspun Corp: Achieved an all-time high of ₹824.4 after securing two large orders for natural gas pipeline projects in the US, scheduled for FY25-FY26.
3. Adani Ports: Gained following a Navigational Safety at Ports Committee (NSPC) certificate for its Krishnapatnam Port, enhancing its petroleum import capabilities.
4. Roto Pumps: Secured over 400 orders for its new solar submersible pumping systems, expanding its footprint in agriculture and renewable energy.

Key Developments in Specific Sectors

• Textiles: Stocks like Trident and Welspun Living surged as Bangladesh considered selling stakes in 32 companies under Beximco Group, addressing worker unrest.
• Pharmaceuticals: Suven Pharmaceuticals acquired a 56% stake in NJ Bio for ₹535 crore, positioning itself in the $2.7 billion ADC outsourcing market, which is growing at 25% annually.

Conclusion
The Indian equity markets reflected a mixed sentiment, with FMCG and heavyweights dragging indices lower. However, the continued strength in midcap and small-cap stocks, coupled with optimism in the metal sector, indicates selective resilience. Going forward, global cues and sector-specific developments, particularly in FMCG and metals, will likely influence market direction.

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