Markets rebounded sharply from the support of 17250 on Monday with the Nifty 50 regaining closing above 18400 while the banking sector underperformed. Despite a sharp pullback, the India VIX closing was well above the 13% mark, which may be a significant hindrance to the sustenance of the rally. Markets are likely to witness a breather only after India’s VIX declines towards 9% else any rebound is expected to remain short-lived. The overall view remains positive but the Nifty 50 is likely to attempt another dip towards 18150 before we see strong signs of reversal.
Global cues are weak after Yen surges sharply on the Bank of Japan’s decision to raise the upper band limit on the yield target to about 0.5%.
Nifty 50 Index, NYSE composite
Stocks to watch
Positive Read through
- LIC has bought an additional 2.27 pct stake in IRCTC, during Oct 17-Dec 16, via open market transactions increasing its stake from 5 pct to 7.27 pct.
- NBCC has received a contract for the construction of a new multi-storied quarter complex from Odisha Power Transmission Corporation.
- HDFC has increased its retail prime lending rate on housing loans by 35 bps, with effect from December 20.
- IRB Infra- Board to consider stock split on Jan 4
- Gujarat Gas is mulling another cut in natural gas prices for ceramic tile makers
- Hinduja Global board approves a buyback of shares worth Rs 1,020 crore at the price of Rs 1,700 per share.
- Ramco Systems- to consider fundraising on Dec 22.
Negative Read Through
- Dabur India Promoters are likely to sell shares worth Rs 800 crore via block deals on Dec 20
- Indigo- Market share slips to 55.7 pct, reclaims top spot in on-time
- Sterling & Wilson- Promoter sells up to 5.3 pct stake in the company via OFS
- Just Dial- Promoter Reliance Retail intends to sell 2 pct to meet MPS norm
- GMM Pfaudler- Pfaudler Inc sells 17.32 pct, Patel Family single largest shareholder.
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