Nifty and Sensex gave up their day's gains on December 24 afternoon as metal, PSU bank stocks see selling pressure. Festive season trading saw subdued volumes, but Tata Group stocks stole the spotlight, with Tata Motors and Tata Investment climbing as much as 12 percent after the conglomerate began the groundwork for the Rs 15,000-crore IPO of its financial services arm, Tata Capital.
At 1:50 pm, the Sensex was down 42.33 points or 0.05 percent at 78,497.84, and the Nifty was down 9.60 points or 0.04 percent at 23,743.85. About 1,820 shares advanced, 1,639 shares declined, and 81 shares unchanged.
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"Two sets of factors- external and internal- will restrain a sustained rally. Externally, the strong dollar and high bond yields in the US will prompt the FIIs to sell on rallies. Internally, the growth and earnings slowdown will be near-term negatives that will restrain the bulls. The high valuations in the market in this challenging macro backdrop cannot favour a PE expansion which can take the market significantly higher," V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services, said.
Among sectoral indices, Nifty Auto and FMCG were the top gainers. The auto pack was led by four-wheelers mainly Tata Motors, M&M and Maruti Suzuki. Tata Motors shares rose after the group initiated work on a mega Rs 15,000-crore IPO of Tata Capital, its flagship financial services arm. Nifty Oil and Gas rose 0.7 percent in the afternoon. Metal and PSU Bank stocks fell up to to 0.8 percent. The two witnessed profit booking after rallying 1 percent in the previous session. As for volatility, the India VIX cooled off another 2 percent to fall below the 13.5level.
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The broader market, represented by the mid-small cap stocks, gained momentum with gains of 0.1 and 0.2 percent, respectively. Bathini says that strong retail participation has supported small and mid-cap stocks, outperforming large caps in recent months, defying their usual high-beta behaviour during a market fall.
City gas distribution (CGD) stocks continued their upward momentum on December 24, with shares of Indraprastha Gas Ltd, Mahanagar Gas Ltd, and Gujarat Gas Ltd rising up to 4 percent in early trade. The sector has been on investors’ radar for the past two months, fueled by significant policy developments. In November, the central government reduced the Administered Price Mechanism (APM) gas allocation to CGD players by 20 percent for the second consecutive month, a move that has kept trading activity buzzing in the segment.
Greaves Cotton shares surged over 11 percent on December 24, fueled by robust investor interest following its subsidiary, Greaves Electric Mobility Limited (GEML), filing a draft red herring prospectus with SEBI for its upcoming IPO. The announcement sparked a sharp rise in trading activity, with over one crore shares exchanging hands, surpassing the one-month daily average of 92 lakh shares. The strong volumes underscored the market’s positive sentiment around the company’s electric mobility ambitions and IPO plans.
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Tata stocks jumped on Tuesday, with Tata Investment, Tata Chemicals and Tata Motors shares soaring 12 percent, 6 percent and 3 percent, respectively after Moneycontrol reported a mega Rs 15,000-crore IPO of Tata Capital, its flagship financial services arm. Shares of Tata Investment Corp climbed to Rs 7,300 in late morning trade, while Tata Chemicals stock traded at Rs 1,100, and Tata Motors rose to Rs 745, on value-unlocking prospects.
"On the levels front, 23,850-23,870 withholds a crucial hurdle, followed by the Bearish gap of 24,000-24,150, and until these zones aren’t conquered, any bounce should be seen as an opportunity to lighten long bets. In contrast, 23,600-23,500 is likely to mitigate any shortcomings, while a breach could lead to further corrections towards 23350 in the comparable period," Sameet Chavan, Head of Technical and Derivative Research at Angel One, said.
Adani Enterprises, Tata Motors, Trent, Dr Reddy's, and BPCL were the top gainers on the Nifty. Tata Steel, JSW Steel, Hindalco, IndusInd Bank, and Bajaj Finance were the major laggards.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.