FIRST TRADE: Sensex up over 25 pts; Nifty above 21,250

Stock market today: Domestic equity indices Sensex and Nifty50 edged higher on Friday, December 22, extending recovery after Wednesday's fall and tracking Asian and US peers after fresh US growth data added to the improving interest rate outlook. Last seen, the S&P BSE Sensex was up 124.68 points, or 0.18 per cent, at 70,989.78, and the NSE Nifty was up 51.75 points, or 0.24 per cent, at 21,306.8.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 also opened in green. High-beta Nifty Bank was flat with a negative bias at 47,807.45.

"The market signal is that Wednesday’s sharp correction was a one-day event and not a reversal of the uptrend. The global cues continue to be favourable, with the dollar index below 102 and the US 10-year bond yield hovering around 3.9 per cent," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Dr. Vijayakumar believes that the concern in the market now is the excessive valuations in the mid- and small-cap segments. Retail exuberance and sustained flows into mid- and small-cap mutual funds are driving this rally, which has slipped into a frothy zone.

According to the expert, the broader market rally cannot continue for long. Safety is as important as returns. Undoubtedly, safety is in large caps now. In the future, large caps are likely to outperform mid- and small caps.

BUZZING STOCKS

Allcargo Logistics shares were up over 7 per cent on BSE, and Allcargo Gati shares were up over 4 per cent after both companies' boards approved the composite scheme of arrangement for restructuring of businesses under Allcargo Limited and Allcargo Gati Limited (formerly Gati Limited).

LIC shares surged over 5 per cent on December 22 after the Department of Economic Affairs decided to grant a one-time exemption to the state-run life insurer to achieve a 25 per cent minimum public shareholding (MPS) until May 2032.

360 One Wam shares were up over 3 per cent after Citi maintained its 'buy' call on the company and raised the target price from Rs 615 to Rs 750.

RailTel Corporation of India shares were up over 2 per cent after the railway PSU clinched a new order worth Rs 66 crore from NF Railway Construction.

MOIL shares were up over 2 per cent after production at the company surpassed 16 lakh tonnes on December 20, 2023, 26 per cent higher than the previous best achieved in 2019.

GMR Airports Infrastructure shares were up over 2 per cent after the company announced NIIF will invest up to Rs 675 crore in an upcoming green field airport at Bhogapuram in Andhra Pradesh.

GLOBAL MARKETS 

Asian stocks were poised to eke out gains for the final full trading week of the year on Friday, while the dollar eyed a loss as investors look to 2024 as a year of steep US rate cuts.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) went up 0.3 per cent in early trade.

(With agency inputs.)

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.