Indian stock market valuation reaches $4 trillion for the first time - Daily Market Update - Equity 5 Dec 2023 | Globe Capital Market LTD.
Indian stock market valuation reaches $4 trillion for the first time – Daily Market Update – Equity 5 Dec 2023

A surge in investments by retail traders and resurgent foreign inflows have put India’s stock market — the world’s fifth biggest — on the verge of a $4 trillion valuation for the first time. The market capitalization of securities listed on the nation’s exchanges has tripled since the March 2020 pandemic low to reach a whisker short of the $4 trillion mark as of Monday

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.11% to 0.84%
  • European equity markets ended on negative note
  • Majority of Asian equity markets are trading in red.
  • GIFT Nifty is trading up by 9 points, Nifty futures likely to open around 20816levels (as on 8:30AM)


News highlights from across the globe

  • Share indices in Asia fell Tuesday tracking overnight losses on its Wall Street peers as traders assessed aggressive bets about rate cuts by the U.S. Federal Reserve might be a cheery thought.
  • The S&P 500 index and Nasdaq 100 fell by 0.54% and 0.84%, respectively, on Tuesday. The Dow Jones Industrial Average fell by 0.11%.
  • Brent crude was trading at $78 a barrel and the yield on the 10-year U.S. bond was trading at 4.26%.

Important news updates from the domestic front

  • HCL Technologies is in talks with State Street Corp. to sell its entire 49% equity stake in joint venture State Street HCL Services for $170 million or around Rs 1,417 crore. The amount will be in addition to the JV’s net book value.
  • ONGC will start oil production from KG Block in May, a government minister said.
  • Coal India: The coal ministry projects total income for the company at Rs 1.41 lakh crore for FY24.
  • Thomas Cook (India) promoter entity, Fairbridge Capital (Mauritius) Ltd., reduced its 8.5% stake in the company via an offer for sale.
  • Mahindra & Mahindra Financial Services: Estimated overall disbursement at approximately Rs 5,300 crore in November, delivering a 16% growth over the previous year.’
  • Bajaj Group: The market capitalisation of Bajaj Group crossed the Rs 10 lakh crore mark on Monday, with Bajaj Finserv Ltd. and Bajaj Finance Ltd. contributing over Rs 7 lakh crore.
  • Graphite India acquired a 31% shareholding in Godi India for a cash consideration of Rs 50 crores
  • TVS Holdings applied for the status of ‘core investment company’ to the RBI.
  • MOIL manganese ore production jumped 35% y-o-y to 1.62 lakh MT in November.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the fifth consecutive trading sessions, settled at record highs i.e. 20686 levels after adding over 400 points to its previous closing values.

Nifty index outperformed the broader markets as it was up over 2% while Small Cap & Midcap index was up 1.39% and 1% respectively.

All the sectoral indices, barring Media & Pharma index,  tracked at NSE settled in green. Amongst them, Banking and Financial pack was at the top of the tally, gained over 3% followed by Nifty Oil & Gas and Realty index that were up 3% & 2% respectively.

Nifty index is well placed on multiple time frames. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 20200 levels on closing basis and expect it to test 20800 and higher levels in near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty and Banknifty futures by increase in open interest by 9.0% and 0.3% respectively, whereas short covering was seen in Finnifty futures with decrease in open interest by 2.5%.

On the sectoral front, long buildup was seen among Oil & Gas, Power, Realty, Automobile and Cement stocks whereas some short buildup was seen among Media and Pharma shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 CE and 20000 PE closely followed by 20500 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2073 Cr in the cash segment, bought stocks futures and index futures worth Rs. 3621 Cr and Rs 1988 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 4797 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 20950-21100; Supports 20500-20350

Banknifty – Resistances 47060-47300; Supports 46000-45700

Finnifty – Resistances 21200-21300; Supports 20700-20500




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