The Indian equity markets continued their rally for the fifth straight session on December 5, 2024, with Sensex and Nifty closing at a seven-week high. Investors remain optimistic ahead of the Reserve Bank of India’s (RBI) monetary policy announcement, driven by expectations of rate cuts and liquidity measures.

Market Overview

The Sensex surged by 809 points (1%) to close at 81,765.86, while the Nifty rose by 240.95 points (1%) to end at 24,708.40. Broader markets also posted gains:

• The BSE MidCap index rose for the ninth time in ten sessions.
• The SmallCap index recorded its tenth consecutive session of gains.

Market breadth remained strong, with 2,144 stocks advancing, 1,821 declining, and 118 unchanged. The India VIX climbed 0.5% to 14.53, reflecting slightly increased volatility.

Key Sectoral Performances

• The Nifty IT index emerged as the best performer, rising 2%, led by gains in Infosys and TCS.
• Nifty Auto, Private Banks, and Oil & Gas advanced 0.7%-0.8% each.
• On the downside, Nifty Realty fell 0.2%, and Nifty PSU Bank slipped 0.1%.

Key Gainers and Losers

Technology and financial stocks dominated the gains:

• Infosys and TCS surged over 3%, while Titan rose 2.8%.
• Bajaj Finance, M&M, ICICI Bank, and Bharti Airtel added 1.9% each.
• NTPC was the only Sensex stock to decline, falling 0.5%.

Stock-Specific Updates

Aurobindo Pharma

The company's subsidiary, Eugia Pharma, received US FDA approval to manufacture and market Pazopanib Tablets, a treatment for advanced renal cell carcinoma and soft tissue sarcoma. The product is expected to launch in Q4FY25 and has an estimated market size of Rs 898 crore.

Torrent Pharmaceuticals

Torrent Pharma entered an agreement with Boehringer Ingelheim to acquire three diabetes-related brands—Cospiaq, Cospiaq Met, and Xilingio. These brands are projected to expand Torrent’s presence in the diabetes market, which has an estimated size of Rs 3,235 crore.

Adani Energy Solutions

The company received a Letter of Intent (LoI) to establish a power transmission system for evacuating power from Rajasthan's Renewable Energy Zone under Phase-III Part-I.

KIOCL

KIOCL resumed operations at its pellet manufacturing plant in Mangalore, signaling positive operational developments.

NBCC (India)

NBCC's subsidiary, HSCC (India), secured orders worth Rs 599.4 crore from the National Health Mission in Maharashtra, which includes radiation oncology units and other projects.

Zomato

The food delivery giant surged to a 52-week high of Rs 304.6 after Bernstein assigned an ‘Outperform’ rating with a target price of Rs 335, citing higher gross order value and broader city presence compared to Swiggy.

PG Electroplast

The stock hit an all-time high of Rs 825 as the board approved a qualified institutional placement (QIP) of equity shares worth Rs 1,500 crore at a floor price of Rs 705.2 per share.

Bondada Engineering

Bondada Engineering received a Rs 108.9 crore order from the Bihar Renewable Energy Development Agency for a solar streetlight project under the Mukhyamantri Gramin Solar Street Light Yojana.

Bharat Forge

The board of Bharat Forge approved a QIP of equity shares worth Rs 1,650 crore, boosting investor confidence.

Indraprastha Gas

The company’s board plans to meet on December 10, 2024, to consider issuing bonus shares to shareholders, driving stock momentum.

Marico

Marico appointed Ashish Goupal as the new CEO of its India core business, effective April 1, 2025, signaling leadership continuity.

Lemon Tree Hotels

Lemon Tree secured an order to redevelop and operate the Orchid Hotel in Shillong, enhancing its portfolio in India.

Muthoot Microfin

Muthoot Microfin reduced lending rates on income-generating loans by 25 bps to 23.1% and third-party product loans by 125 bps to 22.7%, marking its third rate cut this year.

Global and Domestic Factors

The rally was supported by a mix of global and domestic factors:

• Positive global cues from European and US markets supported sentiment, while Brent crude oil prices edged higher ahead of the OPEC+ meeting.
• Domestically, expectations of a 25 bps rate cut by the RBI fueled optimism, supported by a Nomura report predicting 100 bps cuts by mid-2025.

Outlook

With IT and financial stocks driving gains, coupled with optimism around the RBI’s upcoming policy meeting, the market is well-positioned for further upward momentum. Broader market participation and strong sectoral performances are expected to continue, making Indian equities an attractive proposition for investors.

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