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Indian Stock Market opens higher: Sensex, and Nifty rise 0.23% as global sentiment improves

Indian benchmark indices started on a positive note on Friday backed by overseas cues. The Bombay Stock Exchange index, also known as Sensex, was up by 175.65 points or 0.23% at 77,331.44 The National Stock Exchange index or Nifty was up by 52.60 points or 0.23% to end at 23,402.50. By 10: 18 am, the Sensex was up by another 774.93 points or 1% to close at 77,930.72 while the Nifty advanced by 230.10 points or 0.99% at 23,580.00 points at 09:30 am respectively.

Analysts warned that FPI selling could persist and sluggish results and economic activity in Q2 could prevent cap gains. Goldman Sachs maintained a three-month Nifty price target at 24,000 (+2%) and envisages a 12-month bounce back to 27,000 based on earnings.

Adani Group Face Continued Pressure

Adani Group stocks further eroded after fresh reports of $250 million bribery related to board members of an unrated Adani firm. US prosecutors alleged that they violated anti-bribery compliance standards. Analysts believe this could erode investor confidence and increase governance issues within the group. The market saw heavy selling in Adani Enterprises falling 23% and Adani group’s flagship business, Adani Ports at 14% down, erasing ₹2.2 lakh crore from the market capitalization. Several Adani group companies have been rated negative for funding access and cost as funding is sought here and remains expensive.

NTPC Green Energy IPO Update

The ₹10,000 crore NTPC Green Energy IPO closes today. As of 10:06 am, the issue has been subscribed to 96% majorly from the retail investor category. The IPO’s price is set in the range of ₹ 102-108 per share, while the employees can buy at ₹ 5 lower price.

Zinka Logistics Lists After Successful IPO

Zinka Logistics Solutions operating under the trading symbol of BLACKBUCK, was listed on Friday, November 22. The IPO was made available at₹ 273 per share, the top of the price range. As for the issue, which was subscribed 1.86 times, tonight, institutional buyers engaged in competitive bidding.

Global unrest boosts crude oil prices.

Crude oil futures rose slightly because of the tension between Russia and Ukraine. January Brent crude was at $74.42/b (+0.26%) and January WTI was at $70.33 (+0.33%). December crude futures traded on the Multi Commodity Exchange (MCX) rose by 0.83 per cent and are ruling at ₹5,954 a barrel.

Tata Power's first renewable energy project with the ADB

Earlier this year, Tata Power became the first Indian power utility to sign a $4.5 billion renewable energy deal with the Asian Development Bank. There are proposals to jointly create solar, wind and battery storage generation assets, upgrade distribution infrastructure and support India in reaching sustainable development objectives.

Broker-Dealers Release Key Stock Recommendations

Several brokerages shared updated ratings:

Reliance Industries (RIL): JPMorgan’s target price for the stock was ₹1,468 which was Neutral. Morgan Stanley was given an Overweight rating with a target price of ₹1,662.

State Bank of India (SBI): Jefferies maintained a Buy with a ₹1,030 target price, considering it ‘strong in recovery’.

Sobha Developers: HSBC continues with a Buy on the stock with a price expectation of ₹2,150.

Commodity Market Update

Natural gas prices rallied up to an 18% increase this week, reaching a near-one-year high. Analysts attributed the rise in American consumers who began purchasing more propane as they prepared for colder compared to last year’s weather and also to apprehensions over energy disruption if the Russia-Ukraine conflict escalates.

Economic & International Markets

India’s HSBC Manufacturing PMI expected to be at 57.6 shows that the manufacturing sector in India is in a gradual expansion. On the other hand, markets in the United States were up on November 21, owing to record earnings by Nvidia and optimism by retailers in the festive season. Bitcoin rises by 5.7% to reach $ 98,790 after SEC Chairman Gary Gensler resigns.

Market Outlook

According to Deepak Jasani of HDFC Securities, it was a bearish environment in the Indian market driven by such factors as FPI sell-off as well as issues surrounding the Adani Group. “Support for Nifty is seen in the 23,150-23,200 range, with resistance at 23,500,” he further said. Analysts expect the situation to persist, but there could be signs of value buying in solid stocks, they say.