Dear Trader –
Amid mixed global
cues, Indian benchmark equity indices closed in the red on Friday, the last
trading session of 2023, dragged by banking, financials, information technology
and energy shares after their recent rally.
The 30-share BSE
benchmark Sensex declined 170 points or 0.23% to settle at 72,240. The broader
NSE Nifty dropped 82 points or 0.37% to end at 21,861. However, the Nifty and
BSE Sensex gained about 20% each this year.
Meanwhile, the market
capitalisation of all listed companies on BSE surged by Rs 1.05 lakh crore on
Friday, while for the year 2023, the market cap of all listed firms increased
Rs 81.67 lakh crore to Rs 364.05 lakh crore.
All major sectors rose
in 2023, with real estate, auto, pharma and state-owned banks advancing the
most at between 34% and 80%.
The broader Nifty Midcap100 and Smallcap100
surged 0.8% and 0.6%, respectively. Small and mid-caps gained about 55% and 46%
in 2023, far outperforming the blue-chip indices despite valuation concerns.
The rally in the
Indian stock market was driven by sustained domestic mutual fund inflows,
return of foreign buying, better-than-expected economic growth, and healthy
corporate earnings.
Global Markets –
European shares
advanced on Friday, with media and energy companies among the top gainers. The
pan-European STOXX 600 added 0.3% and was on track for its seventh straight
weekly gain as well as its best December performance since 2021.Meanwhile,
Asian stocks were mixed on Friday. Japan’s Nikkei 225 fell 0.2%, while China’s
Shanghai Composite rose 0.7% and Korea’s Kospi surged 1.6%.Tokyo
finished 2023 with gains of 28.2% for the calendar year, its best yearly
performance since a decade ago.
FIIs Net Buyer – Foreign portfolio investors (FPIs), who
were net sellers of Indian shares in 2022 as global central banks hiked rates,
returned to buying in 2023.FPI purchases were the second-highest on
record in 2023, only next to 2020 when valuations had turned favourable due to
the sharp slide triggered by the COVID-19 pandemic.Till December 28,
Foreign Institutional Investors (FIIs) made significant purchases, acquiring
shares worth Rs 1,71,107 crore in 20.
Crude Oil – Oil prices are set to end
2023 about 10% lower, the first annual decline in two years, after geopolitical
concerns, production cuts and global measures to rein in inflation triggered
wild fluctuations in prices.Brent crude futures were up 21 cents, or
0.27%, at $77.36 a barrel on Friday, the last trading day of 2023, while the US
West Texas Intermediate (WTI) crude futures were trading 6 cents, or 0.08%
higher, at $71.84.
Currency Watch – The Indian rupee’s decline
in 2023 was the smallest in a six-year losing streak, while volatility hit
decadal lows due to the central bank’s persistent intervention, which will
likely remain a key factor governing the local unit’s fortunes over 2024.The
rupee shed 0.5% of its value in 2023, which was its smallest annual percentage
change in at least 20 years. The currency ended the year at 83.2075 to the US
dollar, having swung between a high of 80.88 on January 23 and a lifetime low
of 83.42 on November 10.
Nifty futures opened at 21895.10 points against the previous close
of 21854.10 and opened at a low of 21861.75 points. Nifty Future closed with an
average movement of 104.90 points and rise of around 75.95 and 21930.05 points…!!
At the start of intra-day trading December gold opened at Rs.63728
fell from a high of Rs.63821 points to a low of Rs.63333 with a rise of 298 points,a
trend of around Rs.63380 and December Silver opened at Rs.75743, fell from a
high of Rs.75743 points to a low of Rs.75222 with a decline of 341 points, a
trend of around Rs.75306.
Meanwhile,
The market witnessed
mild profit booking on the last trading day of the year. While the euphoria is
expected to continue during the start of the next year on account of the
exuberance of rate cuts and the drop in bond yields.
We feel that though
the outlook on broader indexes is moderate in the short to medium term, the
large caps will maintain their vibrancy due to strong earnings growth and in
anticipation of the continuation of premium valuation.
Technically,
the important key resistances are placed in October Nifty future are at 21861 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up
move with immediate resistances seen at 22008 – 22088 levels. Immediate support
is placed at 21808 – 21676 levels.
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