FIRST TRADE: Sensex and Nifty 50 hit life high amid broad-based buying across all counters

Stock market today: Domestic equity market indices Nifty 50 and Sensex recorded a new life high on Thursday, December 14, amid broad-based buying across all counters. Heavy buying was seen in information technology (IT), realty, bank, metal, and financial services stocks. The rally was also influenced by strength in global stocks after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone on the interest rate outlook. 

At the time of filing this report, S&P BSE Sensex was up by 665.55 points or 0.98 per cent at 70,263.86 and NSE Nifty was up by 190.55 points or 0.91 per cent at 21,116.05. 

"The Fed’s decision to keep the rates unchanged along with rate cut indications in the next year pushed the American markets higher to end the session at record levels and the same can be expected for the Indian markets as well," said Aditya Gaggar, Director of Progressive Shares. 

"The clear dovish message from the Fed yesterday has set the stage for a smart Santa Claus rally in the coming days, and this can even trigger a pre-election rally that can take the markets to a series of new highs," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar added the takeaway from the Fed message on Wednesday is that the tightening cycle is over and three rate cuts are possible in 2024. The market expects four. The record-breaking rally in the Dow will send many indices to new records.

Further, he said the crash in the US 10-year yield to 4 per cent will trigger large capital flows to India. The main beneficiaries will be the large caps, particularly the fairly valued large caps in banking. IT too is likely to attract buying. Retail exuberance can lift the mid and small-caps, too; but there is no valuation comfort in this segment.

Meanwhile, in the broader market, Nifty Mid Cap 100 and Small Cap 100 opened in the positive territory. On the sectoral front, Nifty Bank was up by 1.3 per cent at 47,702.15. 

BUZZING STOCKS

NBCC shares were up by over 3 per cent on BSE after the civil construction company was awarded a Rs 1,500 crore contract.

IRCTC shares hit a 52-week high on BSE after the railways entity informed that it was eyeing major expansion in non-railway catering business across the country.

Fusion Micro Finance shares were over 7 per cent on BSE after reports suggested Warburg Pincus and one other entity is likely to offload a stake via a block deal.

Axis Bank shares edged over 1 per cent higher after the previous day's block deal. 

Conversely, Vedanta shares were down 1 per cent after the company discussed the second interim dividend for FY24 in its board meeting on December 18.

South India Bank shares traded over 1 per cent lower after an initial investigation revealed the case of fraud by an employee of around Rs 28.07 crore.

GLOBAL MARKETS 

Asian stocks broadly rallied on Thursday morning, after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead.

The MSCI's broadest index of Asia-Pacific shares outside Japan added 1.6 per cent.

(With agency inputs.) 

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