The Indian equity markets closed significantly lower on November 28, 2024, amid expiry day volatility and geopolitical tensions. Both the Sensex and Nifty saw a sharp decline, with Sensex falling by 1,190.34 points or 1.48%, to close at 79,043.74, while Nifty dropped by 360.70 points or 1.49%, ending at 23,914.20. These declines reflect the broader market's vulnerability to both domestic and international factors.

Market Performance and Investor Wealth Erosion

In today’s session, the Sensex and Nifty reversed early gains, leading to a significant wealth erosion of approximately Rs 92,801 crore. The market capitalization of BSE-listed companies slipped from Rs 444.48 lakh crore to Rs 443.55 lakh crore, reflecting the market's volatility.

Top Gainers and Losers on Nifty

Among the top losers on the Nifty, SBI Life Insurance, HDFC Life, Infosys, M&M, and Bajaj Finance were the hardest hit. On the other hand, stocks like Adani Enterprises, Shriram Finance, SBI, and Cipla were among the gainers, helping cushion the broader market fall.

Sectoral Performance

The sectoral performance was largely negative, with sectors like auto, bank, IT, FMCG, metal, pharma, and energy losing between 0.3% and 2%. However, the PSU bank index gained 1%, and the media index rose by 0.3%, showing strength in specific sectors.
Interestingly, the Nifty Midcap 100 and Smallcap 100 indices showed relative resilience, with the Smallcap Index rising by 0.4%, while the Midcap Index remained largely flat.

Key Stock in news and Corporate Updates:

• HDFC Life Insurance saw a significant 50.8% increase in open interest in its futures series, signaling a short buildup on the stock. Its put-call ratio stood at 0.8, suggesting potential downward pressure in the near term.
• Vardhman Textiles announced an expansion in its processed fabric capacity, with an investment of Rs 350 crore. This move aims to meet the growing demand in both the domestic and export markets.
• Godrej Properties approved a qualified institutional placement (QIP) of shares worth Rs 6,000 crore at a floor price of Rs 2,727.4 per share, aimed at bolstering the company’s growth initiatives.
• Emkay Research maintained its ‘Reduce’ call on Mahindra & Mahindra, citing concerns about the company’s electric vehicle (EV) sales due to issues with charging infrastructure and resale value.
• Servotech Power Systems surged after securing a Rs 30.2 crore order from UREDA for a 5.6 MW rooftop solar project.
• Borosil Renewables rose following the announcement of Melwyn Moses being appointed as the new CEO of the company, effective December 2.
• NTPC Green Energy saw a rise as its subsidiary, NTPC Renewable Energy, commenced operations at the Shajapur solar project in Madhya Pradesh, bringing 55 MW of 105 MW into commercial operation.
• ZF Group sold a 4.3% stake in its Indian subsidiary, ZF Commercial Vehicles Control Systems India, raising Rs 1,022 crore, while maintaining its majority stake.
• Ujjivan Small Finance Bank rose sharply after selling its written-off loans portfolio and NPAs worth Rs 270.4 crore to an asset reconstruction company for Rs 40.6 crore
• The utilities sector was the best performer of the day, rising by 2.4% as investors sought safer, stable returns amidst the market turmoil.
• KEC International surged to an all-time high, after securing new orders worth Rs 1,704 crore from Power Grid Corp of India for the installation of 765 kV transmission lines and GIS substations.
• Sonata Software gained after securing a multi-million dollar modernization deal in Australia with an access solutions client, aimed at enhancing operations across 13 countries in the Asia-Pacific (APAC) region.
• BEML secured a Rs 2,501 crore order from Chennai Metro Rail to supply metro rolling stock, which includes a 15-year comprehensive maintenance agreement.
• Nazara Technologies gained after its board approved the preferential allotment of 89.6 lakh equity shares, worth Rs 855 crore, at an issue price of Rs 954.3 per share.
• PCBL saw gains as the Andhra Pradesh government allocated 116.6 acres of land to the company for a new chemical manufacturing facility, with a planned capital expenditure of Rs 3,718 crore.
• Waaree Renewable Technologies rose sharply after receiving a Rs 1,233.5 crore project for a 2,012.5 MWp solar photovoltaic project.

Global Market Overview

• Asian indices closed mostly in the red, with Japan’s Nikkei 225 being an exception, ending in positive territory.
• European indices showed a positive trend, and US index futures indicated a positive start to the US market trading session.
• Brent crude oil prices were up slightly, with OPEC+ postponing its meeting on output cuts to December 5, while crude prices remained below $75 per barrel, a level that many OPEC members find challenging to meet their budgetary requirements.

Conclusion

The market closed in the red due to expiry day volatility and external factors like geopolitical tensions and inflation concerns. Although the Nifty and Sensex posted significant losses, there were a number of individual stocks and sectors that showed resilience and positive growth amidst the broader downturn. Investors will be closely watching the global market trends, especially the US futures and the oil prices, as they influence the market’s direction in the coming sessions.

The Upcoming IPOs in this week and coming weeks are Ganesh Infraworld, Suraksha Diagnostic, Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.
The Current active IPO is Agarwal Toughened, Apex Ecotech, Abha Power and Steel and Rajputana Biodiesel.
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