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ToggleLast week, 48 stocks from the Nifty 50 index ended on a positive note, with 20 achieving record-high levels.
Last week, 48 out of the 50 constituents of the Nifty 50 closed on a positive note. Axis Bank took the lead, experiencing a remarkable surge of 9.5%, soaring to ₹1,104 and establishing a new record high at ₹1,109. In a separate development, Bharti Airtel shares crossed the noteworthy ₹1000 milestone on November 29th.
The onset of December brought a surge of strength to the Indian stock market, marked by numerous stocks achieving unprecedented highs and others crossing significant market capitalization milestones. During Friday’s session, a remarkable uptick in FMCG, auto, and banking stocks propelled the Nifty 50 to a historic peak of 20,291 points, surpassing its prior record from September 15, 2023, at 20,222.
Simultaneously, the S&P BSE Sensex approached its all-time zenith, concluding the last trading session at 67,481, nearing its peak of 67,927 points. The BSE MidCap index and BSE SmallCap index continued their winning streaks, both reaching new record highs in Friday’s session. The mid-cap index climbed by 0.70%, reaching 34,498, while the small-cap index surged by 0.86%, attaining a historic high of 40,718. Year-to-date, both indices have witnessed impressive surges, exceeding 35%.
This robust market rally can be attributed to various factors, including robust economic growth, stellar corporate earnings, a decline in crude oil prices, and the rising trend of retail investing coupled with Foreign Portfolio Investment (FPI) inflows.
Thursday’s release of India’s GDP numbers unveiled a substantial expansion of 7.6% in the September quarter of the current fiscal year, surpassing analysts’ expectations. This positive economic indicator has significantly bolstered investor sentiment.
Adding to the optimism, a recent report by S&P Global Ratings titled ‘China Slows, India Grows’ envisions India’s GDP growth rate reaching 7% by 2026, outpacing China’s projected growth of 4.6%. The report anticipates a shift in the growth engine of the Asia-Pacific region from China to South and Southeast Asia, contributing further to the positive outlook in the Indian markets.
Green Surge: Nifty 50 Dominated by Positive Momentum
In a remarkable streak, 48 out of the 50 constituents of Nifty 50 closed the previous week on a positive note. Axis Bank took the lead with an impressive rally, surging by 9.5% and reaching ₹1,104, ultimately achieving a record high of ₹1,109.
Diverse Gainers Highlight Market Strength
Other noteworthy gainers contributing to the green wave included Britannia Industries, BPCL, Adani Enterprises, Hero MotoCorp, NTPC, UltraTech Cement, Tata Motors, Mahindra & Mahindra, and Larsen & Toubro. Each of these stocks closed the week with gains ranging from 4.5% to 7%, showcasing the diverse sectors that experienced notable upticks.
Bharti Airtel Soars Beyond ₹1000
Meanwhile, Bharti Airtel shares crossed a significant milestone on November 29, surpassing the ₹1000 mark. In the subsequent Friday session, the telecom giant recorded a new all-time high, reaching ₹1,022 per share. This achievement underlines the continued positive momentum and investor confidence in Bharti Airtel.
Soaring to unprecedented heights, Bharti Airtel’s stock has propelled the company’s market capitalization close to the ₹6,00,000 crore mark. At its peak price of ₹1,022, the company’s market cap reached an impressive ₹5,84,584 crore.
Elite Club of High Market Cap Firms
BSE data reveals that only nine Indian publicly listed firms boast a market capitalization exceeding ₹5,00,000 crore. Bharti Airtel secures the seventh position in this elite club, underscoring its substantial market value.
Record Highs Across the Board
Last week witnessed a remarkable surge in individual stock performances, with a total of 20 stocks hitting new record highs. Beyond these individual feats, the Nifty 50 index marked a substantial gain of 2.39%. This notable increase represents the most significant weekly uptick since June 2023, reflecting a broader positive momentum in the market.
FPIs Shift to Buying Mode in November
Breaking a two-month trend of selling shares, Foreign Portfolio Investors (FPIs) emerged as buyers of Indian equities in November. This shift coincided with a decline in US Treasury bond yields, following a peak in October. FPIs purchased Indian equities amounting to ₹9,001 crore, reversing the trend after selling shares worth ₹24,548 crore in October and ₹14,767 crore in September, as per depository data.
Market Responds with Strong November Gains
The change in FPI sentiment had a positive impact on the Indian equity market, leading to robust gains in November. The Nifty 50 index recorded a substantial gain of 5.52%, marking the most significant monthly increase since July 2022.
Future Outlook and Influencing Factors
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the potential impact of the upcoming state election results on FPI behavior. He noted, “If the state election results turn out to be favorable for the ruling dispensation, the market will stage a rally.” The strategist emphasized that FPI response would be contingent on the prevailing market trend. While FPIs may engage in buying financials with fair valuations, the overall high market valuations might prompt them to turn sellers at elevated market levels. The evolving market scenario and political developments will play a pivotal role in shaping FPI actions in the coming months.
Remarkable Market Entries: Mainboard IPOs Shine Bright
Last week witnessed a flurry of activity on the stock exchanges with the debut of five Mainboard Initial Public Offerings (IPOs), showcasing a robust trend in the market. Notably, three of these IPOs made stellar entries by listing with premiums exceeding 50% of their respective issue prices.
Tata Technologies Steals the Spotlight
Tata Technologies stole the show with a remarkable market debut on Thursday, November 30. Opening at ₹1,200, a substantial 140% higher than its issue price of ₹500, the stock closed its first day of trading at ₹1,313, reflecting an impressive 162.6% premium to the issue price. This debut not only secured the title of the best IPO of 2023 but also marked the most remarkable market entry since November 2021.
Indian Renewable Energy Development Agency Makes Waves
Similarly, the shares of Indian Renewable Energy Development Agency made waves by being listed at ₹60 apiece, showcasing an impressive 87.5% premium compared to the IPO price of ₹32.
Strong Premiums for Gandhar Oil Refinery and Flair Writing Industries
Adding to the stellar debuts, Gandhar Oil Refinery (India) and Flair Writing Industries shares witnessed premiums of 78.3% and 48.3%, respectively, over their issue prices. These robust market entries underscore the positive investor sentiment and demand for quality IPOs, reflecting the dynamic nature of the current market landscape.
In contrast to the exuberant debuts of other Mainboard IPOs, Fedbank Financial Services shares experienced a more subdued listing. The stock gained a marginal 0.2%, opening at ₹140.3 apiece, just slightly above the issue price of ₹140. While the premium was relatively modest, the market entry of Fedbank Financial Services adds to the diverse spectrum of performances observed in the recent wave of IPOs. Investors will likely closely monitor the stock’s subsequent movements to gauge its trajectory in the dynamic market environment.
Persistent Decline in Crude Oil Prices Amid OPEC+ Output Cuts
In a week marked by volatility, Brent crude futures faced a 1.60% decline, settling at $79.19 per barrel, while WTI crude futures saw a 1.95% decrease, reaching $74. The dip in prices persisted even after OPEC+ announced output cuts on Thursday, failing to alleviate concerns stemming from the escalating global oil supplies.
On November 30, the OPEC+ alliance, comprising major oil-producing nations led by Saudi Arabia, opted to extend output cuts. Despite the announcement of an additional 900,000 barrels a day in oil output cuts from January, the impact is somewhat tempered by the voluntary nature of the curbs. Significantly, Angola has already rejected its quota. Meanwhile, Saudi Arabia intends to extend its separate 1 million barrel-a-day curb through the first quarter, according to reports from Bloomberg. The market’s response to these developments reflects ongoing apprehensions about the oversupply of crude oil on a global scale.
While Brazil has notably contributed to the upswing in global oil supplies, the country has declared its intention to join the OPEC alliance cooperation charter next year. However, as per reports, Brazil does not plan to participate in any production cuts at the moment. This decision adds an interesting dimension to the dynamics of the global oil market, as Brazil aligns with the OPEC alliance without an immediate commitment to reducing its oil production. The extent and implications of Brazil’s cooperation within the OPEC framework will be closely observed, as the collaboration unfolds against the backdrop of ongoing efforts to balance oil supply and demand on the world stage.
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