Weekly Market Wrapup

Highlights of the week:

1. Indian Rupee Stabilizes at 84.49 Against US Dollar Amid Volatility: The Indian rupee closed flat at 84.49 against the US dollar on Friday, after hitting a low of 84.5038 earlier in the week. On Wednesday, the Reserve Bank of India intervened in the forex market, selling dollars to support the rupee, which briefly appreciated to 84.39. The rupee's volatility was driven by persistent dollar demand, impacting the domestic currency's movement. Analysts expect the rupee to trade in a range of 84.40 to 84.55 in the near term. The currency's fluctuations highlight ongoing challenges in the forex market.

2. Gold Prices Dip in November: What’s Impacting the Yellow Metal?

In November 2024, gold prices in India fell by over 2.5%, driven by several factors. Why did this happen?

• Geopolitical Calm: The ceasefire between Israel and Hezbollah removed some of the risk premium, reducing demand for gold as a safe-haven investment.
• Stronger US Dollar: A stronger dollar made gold less attractive, leading investors to seek higher returns elsewhere.
• US Economic Outlook: A growing economy and stable inflation decreased gold's appeal.

But there's good news: As geopolitical tensions rise (e.g., Russia-Ukraine) and the wedding season kicks off, gold prices might see an upward swing! With the wedding industry projected to add ?5.9 trillion to India’s economy, demand for gold could surge, fueling a bullish market in December.

3. Bitcoin Faces Selling Pressure as Volatility and Liquidations Impact Market

Bitcoin faces increased selling pressure as profit-taking, market uncertainty, and mass liquidations continue. The buy-sell taker ratio has spiked, similar to levels seen in July 2024, indicating heightened selling activity. Over $430 million in long positions were liquidated, signaling volatility and potential price reversals. Despite this, Bitcoin's price has seen a 1.6% increase recently, reaching over $97,000. Analysts suggest caution, recommending defensive strategies like reducing leverage and setting stop-losses, while some foresee a bullish rally toward $100,000 and beyond.

4. Indian 10-Year G-Sec Yield Drops Amid Slowing Economy and Rising Fiscal Concerns

The yield on India's 10-year government securities fell to 6.83%, retreating from a three-month high of 6.9% due to weaker-than-expected GDP growth in the September quarter. The economy expanded by just 5.4%, fueling concerns that India’s growth momentum has slowed. This, alongside widening fiscal deficits, raised expectations that the RBI may start cutting rates by early 2025, supporting demand for G-Secs. However, fiscal concerns have limited further yield declines.

5. NSE Changes F&O Expiry Days for 2025

The National Stock Exchange (NSE) will revise the expiry days for Nifty Bank, FinNifty, Nifty Midcap Select, and Nifty Next50 contracts to Thursday starting January 1, 2025. This change follows the discontinuation of weekly contracts for these indices. The new expiry dates will take effect after the end of January 1, 2025, and will be applicable from January 2, 2025. The move aligns with recent changes by the BSE to address excessive trading on expiry days.

6. India's GDP Growth to Fall Below 6.5% in FY25 Amid Q2 Slowdown: SBI Report

India's GDP growth is projected to drop below 6.5% for FY25, as the economy slowed to 5.4% in Q2, driven by a sharp decline in industrial output. Manufacturing growth fell to a six-quarter low of 3.6%, impacting overall performance, though sectors like services and agriculture showed resilience. The slowdown in industrial growth points to broader challenges ahead for the economy.

Unlisted Share News:

1. Gramophone Reports Decline: Agritech startup Gramophone saw a 69% drop in revenue to Rs 98 crore in FY24 but reduced losses by 41% to Rs 34 crore.
2. CitiusTech Profit Surge: Healthcare platform CitiusTech's profit jumped six-fold to Rs 350 crore despite flat revenue growth at Rs 3,536 crore in FY24.
3. Bloom Hotels Growth: Bloom Hotels reported a 73.6% revenue increase to Rs 250 crore in FY24, with profit more than doubling.
4. Cleartrip Losses Continue: Despite 98% revenue growth, Cleartrip posted a Rs 810 crore loss for FY24.
5. Beardo Returns to Profit: Beardo achieved 62.4% growth with revenue at Rs 173.2 crore, posting a Rs 3.63 crore profit.
6. ShareChat Reduces Losses: Mohalla Tech's revenue grew by 33% to Rs 718 crore in FY24, with net losses narrowing significantly.
7. Cars24 Growth and Losses: Cars24 grew revenue by 25% to Rs 6,917 crore but posted Rs 498 crore in losses.
8. Rebel Foods and Google’s Investments: CCI cleared Google's $350 million investment in Flipkart and Temasek's funding in Rebel Foods, which saw a 42% loss reduction.
9. Nykaa Acquires Earth Rhythm: Nykaa acquires majority stake in clean beauty brand Earth Rhythm to expand its beauty product portfolio.
10. ApnaKlub’s Growth: ApnaKlub's gross revenue nearly doubled to Rs 537 crore, reducing its losses by 14%.
11. Lendingkart's Mixed Performance: Lendingkart reported a 36% revenue increase to Rs 1,090 crore but saw a 6% fall in PAT.
12. OneCard Raises $28.5 Million: OneCard raised $28.5 million, with a valuation of $1.4 billion, growing six-fold in revenue in FY23.
13. Oyo Receives Investment: Oyo to receive $65.1 million investment from Ritesh Agarwal’s firm, valuing the company at $3.8 billion.

Key Indices Performance

• Nifty Auto: Declined by 0.79%, reflecting a challenging week for the auto sector.
• Nifty IT: Fell by 0.43%, showing underperformance in the IT sector.
• Nifty Pharma: Gained 1.27%, marking a steady rise in pharmaceutical stocks.
• Nifty Realty: Rose by 1.38%, driven by positive movements in the real estate sector.
• Nifty Finance: Increased by 1.64%, showing growth in the financial services sector.
• Nifty FMCG: Saw a 1.73% rise, reflecting steady performance in consumer goods.
• Nifty Bank: Grew by 1.80%, supported by strong performance in banking stocks.
• Nifty Metal: Gained 2.12%, fueled by a rise in metal-related stocks.
• Nifty Energy: Increased by 2.62%, boosted by strong performance in the energy sector.
• Nifty Oil & Gas: Rose by 4.00%, benefiting from the strong performance of oil and gas stocks.
• Nifty PSU Bank: Jumped by 4.70%, showing significant growth in public sector banks.

Nifty Media: Led the performance with a 5.51% gain, driven by media sector strength.

Weekly Top Gainers:

1. Bharti Airtel – Closed at ?1,627.15, up 4.28%, driven by strong market sentiment and sectoral growth.
2. Cipla – Closed at ?1,533.90, up 2.76%, supported by positive performance in the pharmaceutical sector.
3. Sun Pharma – Closed at ?1,780.90, up 2.69%, buoyed by positive news in the healthcare space.
4. M&M – Closed at ?2,966.10, up 2.33%, fueled by favorable demand in the automotive sector.
5. Adani Ports – Closed at ?1,190.05, up 1.92%, showing steady performance amid logistics and infrastructure growth.

Weekly Top Losers:

1. Power Grid Corp – Closed at ?329.40, down 1.27%, reflecting a slight dip in power sector performance.
2. Shriram Finance – Closed at ?3,019.65, down 0.79%, impacted by a marginal loss in the financial sector.
3. Hero Motocorp – Closed at ?4,761.70, down 0.46%, seeing a slight decline due to lower demand sentiment in the automotive industry.
4. Apollo Hospital – Closed at ?6,828.90, down 0.18%, with minor losses in the healthcare sector.
5. Nestle – Closed at ?2,234.65, down 0.07%, experiencing a small dip in food & beverage stocks.

Global Market Recap: A Mixed Bag of Growth and Caution

Last week, global markets presented a mixed picture. The U.S. saw strong growth, with the Dow Jones up 3% and the S&P 500 rising 1.3%, driven by a robust GDP growth of 2.8% in Q3 2024. Meanwhile, European markets experienced early gains, led by the tech sector, but eventually faced a dip, with the Euro Stoxx 50 declining by 0.4%. In Asia, China’s CSI 300 rose 1.3% on optimism in the manufacturing sector and signs of a potential housing recovery, while Japan’s Nikkei fell by 0.2%, affected by inflation concerns.

Commodities and Currency

• Brent crude stabilized around $72 per barrel.
• The Indian Rupee weakened, ending at Rs 84.57 against the U.S. dollar.

Key Economic Trends:

• U.S. economy remains resilient, but inflation persists: Despite strong consumer spending, inflation remains stubbornly above the Federal Reserve's 2% target, likely limiting the scope for future interest rate cuts, even though a rate reduction is expected in December.
• Eurozone inflation on the rise: Inflation in the Eurozone climbed to 2.3% in November, exceeding the ECB's target of 2%, which has led to a more cautious approach toward potential rate cuts.
• China’s manufacturing sees modest growth: Factory activity in China showed improvement for the second consecutive month, with the PMI rising to 50.3. However, looming U.S. tariff threats may pose risks to this recovery.

These trends reflect a volatile global market environment, where economic data continues to shape investor sentiment, with caution amid the potential for shifting global dynamics.

FII DII Data

FIIs End 38-Day Selling Streak: A Glimmer of Hope, But Questions Remain

After 38 consecutive days of selling, foreign portfolio investors (FPIs) turned net buyers, snapping their outflows with nearly Rs 10,000 crore in secondary market purchases. The single-day gross purchase of over Rs 85,000 crore seemed impressive, yet the market's response was modest, with benchmark indices rising just 1.3%. Behind the headline net buying figure, however, FPIs also sold over Rs 75,000 crore on the same day, revealing that while the selling streak has paused, significant outflows continue to shape the market sentiment.

IPO Corner

Why Did C2C Advanced Systems IPO Face a Backlash?

The C2C Advanced Systems IPO saw a dramatic reversal when 3.72 lakh applications worth Rs 27 crore were withdrawn, after regulatory concerns led to a halt in its listing process. Why the sudden change?

Key factors:

• SEBI’s audit mandate: SEBI directed an independent audit of C2C’s financials, raising transparency issues.
• Fund monitoring: NSE’s oversight on fund utilization raised red flags.
• Investor fallout: Despite an initial 125x oversubscription, investors, from retail to institutions, backed out amid doubts about governance.

This regulatory intervention highlights growing scrutiny of SME IPOs. Could this be a sign of tighter regulations in the market?

Report Card of Recently Listed IPO

Enviro Infra Engineers shares made a strong debut on the NSE and BSE. The stock listed at ?220 apiece on the NSE with a premium of 48.65% against the issue price of ?148 per share. The company’s stock listed at ?218 apiece at a premium of 47.3% on the BSE. Enviro Infra Engineers shares closed at ?207.16 apiece on the NSE, up by 5.84% on the NSE.

Enviro Infra Engineers IPO was worth ?650.43 crore and consisted of a fresh issue of 3.87 crore shares aggregating to ?572.46 crores and an offer for sale of 53 lakh shares aggregating to ?77.97 crore. The issue was open for subscription from November 22 to November 26.

?? NTPC Green Hits ?1 Lakh Crore Milestone in Style! ??

NTPC Green Energy is making waves! Despite a modest 3% debut gain on November 27, the stock ended its listing day with a solid 10% rally. On Day 2, it soared another 5%, hitting an all-time high of ?132.3 on NSE.

The stock is already up 22% from its IPO price, even as some investors cashed in profits. Breaching the ?1 lakh crore market cap mark in its first week, NTPC Green has firmly planted itself as a heavyweight in the renewable energy space. ??

?? IPO Gold Rush 2024: Meet the Market's New Superstars! ??

2024 has been nothing short of legendary for IPO investors! With 75 mainboard IPOs, a staggering 48 stocks have delivered blockbuster returns, skyrocketing as high as 275% from their issue prices. From buzzing startups to industrial giants, this year’s IPO parade has minted wealth like never before. Ready to meet the top performers? Let’s dive in!

?? Jyoti CNC Automation: The Machining Marvel

Returns: +275% | Issue Price: ?331 → Current Price: ?1,243 Starting the year with a modest 11.8% listing gain, this automation giant quietly became the year’s best performer. Trading at nearly 4x its issue price, it’s a jackpot for those who believed in its cutting-edge tech.

?? KRN Heat Exchanger: Chill, It’s Hot!

Returns: +253% | Issue Price: ?220 → Current Price: ?777 This refrigeration specialist listed with a stunning 118% gain and hasn’t looked back. Cooling systems never looked so cool!

?? Premier Energies: Solar Soars to New Heights

Returns: +176% | Issue Price: ?450 → Current Price: ?1,241 With the world going green, Premier Energies capitalized on the solar energy boom. It dazzled with a 120% listing premium, and now it’s powering portfolios like never before.

?? Platinum Industries: Manufacturing Wealth

Returns: +153% | Issue Price: ?171 → Current Price: ?432 It debuted with a 31% listing gain, but this industrial heavyweight’s growth has been relentless, delivering 2.5x returns. Truly a stock that turned metals into gold!

?? Bharti Hexacom: Dialing Up the Gains

Returns: +142% | Issue Price: ?570 → Current Price: ?1,379 A 32.4% listing premium was just the beginning. With its focus on telecom infrastructure, this Bharti Airtel subsidiary has consistently kept the profits ringing!

? Rising Stars to Watch

• JG Chemicals: +97% | Specialty chemicals that doubled investor money despite a sluggish start.
• Gala Precision Engineering: +92% | Precision meets profits. A 36% listing gain turned into long-term magic.
• Exicom Tele-Systems: +95% | Riding the telecom wave, this stock is making quiet yet powerful strides.
• Bajaj Housing Finance: +94% | Affordable housing, massive gains! Nearly 2x returns for this sector leader.
• Orient Technologies: +93% | Tech is hot, and Orient proved it with stellar gains post its tech-driven debut.

?? 2024: A Record-Breaking IPO Year

With 300+ IPOs, 2024 has shattered records (last year had just 238!). From Swiggy to Ola Electric, Hyundai Motor India, and FirstCry, the market has been buzzing with big names and exciting opportunities.

IPO NOTE: