Market Performance: December 2

• The Indian stock market staged a strong recovery, closing higher for the second consecutive session despite concerns over weak Q2FY25 GDP data, which hit a seven-quarter low.
• Gains were led by Reliance Industries, HDFC Bank, Infosys, and Bharti Airtel, which collectively lifted the benchmark indices.

Indices at Close

• Nifty 50: Gained 0.60% to end at 24,271 points.
• Sensex: Rose 0.54% to close at 80,232 points.
• Broader indices outperformed benchmarks:
  • Nifty Midcap 100: Up 1.11%, closing at 57,016 points.
  • Nifty Smallcap 100: Up 1.02%, closing at 18,841 points.

Sectoral and Stock Highlights

1. Heavyweights Drive Recovery

• Reliance Industries, HDFC Bank, Infosys, and Bharti Airtel were the key contributors to the market’s upward trajectory, adding significant value to the indices.

2. Cement Stocks Surge

• UltraTech Cement and Grasim Industries led the rally in the cement sector following reports of price hikes planned by cement companies.
• Other cement players also gained, reflecting optimism about a potential recovery in the sector.

3. Broader Market Outperformance

• Mid and small-cap stocks outperformed the benchmark indices, indicating positive investor sentiment across the broader market spectrum.

IPO Updates

Active IPOs

1. Ganesh Infraworld
2. Suraksha Diagnostic
3. Agarwal Toughened Glass India

Upcoming IPOs

• Nisus Finance
• Emerald Tyre Manufacturers
• Rosmerta Digital
• Avanse Financial

These IPOs are expected to generate significant investor interest, given their strong fundamentals and market prospects.

Detailed Updates Across Sectors

Energy and Natural Resources

• Gujarat Gas announced a ₹1.5 per kg price hike for CNG, effective December 1, raising the rate to ₹77.8 per kg.
• NMDC saw a 5.5% YoY rise in total sales, reaching 4 million tonnes in November, with production up 18% YoY to 4.5 million tonnes.
• The Centre removed windfall taxes on aviation turbine fuel, crude oil products, petrol, and diesel, which could benefit oil majors like Reliance and ONGC.

Corporate Partnerships and Contracts

• Sterling Tools partnered with China's Zhejiang Meishuo Electric to manufacture latching relays for power transmission in India, targeting ₹200 crore revenue by FY30.
• Cochin Shipyard secured a ₹1,000 crore Ministry of Defence contract for refitting an Indian naval vessel.
• Sterling and Wilson Renewable Energy bagged a ₹504 crore order for a 396 MWp solar project in Rajasthan.
• GP Petroleums signed a ₹223 crore agreement with HPCL for the supply of bulk bitumen.
• KEC International won ₹1,040 crore worth of international orders for transmission and distribution projects.
• Rail Vikas Nigam emerged as the lowest bidder for a ₹642.6 crore power distribution upgrade contract in Punjab.

Pharmaceuticals and Healthcare

• Biocon Biologics received US FDA approval for Yesintek, a biosimilar to Stelara, targeting diseases like Crohn's and psoriasis, with a global market size of $11.4 billion.

Technology and Manufacturing

• HCL Technologies partnered with Google Cloud Security to provide AI-driven MDR solutions, enhancing threat detection capabilities.
• Dixon Technologies surged as its arm, Padget Electronics, signed a deal for Google Pixel mass production with Compal Smart Device India.

Auto Sector Highlights

• TVS Motor reported 10% YoY growth in November wholesales, driven by a 57% increase in EV sales and 12% in two-wheelers.
• Mahindra & Mahindra posted a 12% YoY increase in wholesales to 79,083 units, with passenger vehicle sales up 16% and exports rising 53%.
• Hero MotoCorp saw a 6.4% YoY drop in wholesales due to weaker motorcycle sales, though exports grew 35.7%.
• Bajaj Auto's domestic sales declined by 7% YoY, but exports rose 24% YoY to 1.8 lakh units.
• Escorts Kubota reported a 9.4% YoY drop in total wholesales to 8,974 units in November, with exports down by 39.5%.

Stock Market and Financial News

• Home First Finance witnessed a block deal involving 21% equity or 1.9 crore shares, likely sold by promoters.
• Cipla’s promoters sold 1.7% stake worth ₹2,000 crore in a block deal at a floor price of ₹1,442 per share.
• RBL Bank hit a 52-week low after ending an eight-year co-branded credit card partnership with Bajaj Finance.

Economic Indicators

• India's GDP growth slowed to 5.4% in Q2FY25, marking a seven-quarter low due to weaker industrial performance. Barclays revised its full-year growth forecast to 6.5%.
• The manufacturing PMI dropped to an 11-month low of 56.5 in November, down from 57.5 in October.

Ports and Logistics

• Adani Ports handled 36 million metric tonnes of cargo in November, driven by a 21% YoY rise in container volumes. January-November cargo volumes grew by 7% YoY.

Brokerage Ratings

• Morgan Stanley maintained an "Equal-weight" rating on IndusInd Bank, reducing its target price to ₹1,150 amid concerns over weak microfinance asset quality.

Despite lingering concerns over weak GDP data, the stock market showed resilience, with gains led by heavyweights and cement stocks. Broader market outperformance reflects robust sentiment, setting the stage for further recovery in the coming weeks. IPO activity remains vibrant, with several promising listings expected in December.