Also Read: Tata Technologies IPO sets record! Attracts more than 50 lakh applications on a subject
The mainstream market stole the spotlight last week, with a string of IPOs capturing investor interest. Tata Technologies IPO, as expected by the street, witnessed robust demand from all sections of investors.
That major issue marked the group’s return to the IPO arena after nearly two decades, with Tata Consultancy Services (TCS) being the last Tata Group IPO in 2004. The three-day offering window, from November 22 to 24 an of November, witnessed a phenomenal subscription. of 69.43 times, showing widespread investor confidence.
Also Read: IPO pulse on D Street: ₹2.5 lakh crore raised by 5 subjects in a week-long frenzy
The IPO frenzy has extended beyond Tata Technologies, with other issues such as Gandhar Oil, IREDA and Flair Writing Industries experiencing robust demand from investors. Fedbank Financial Services, which initially got a muted response, witnessed full subscription on the third day.
Amid this background, the Nifty 50 ended the previous week with a modest gain of 0.32%, settling at 19,794 points, gaining for the fourth straight week, while the S&P BSE reached 175.31 points, marking a 0.27% increase and closing at 65,970 points. .
Among sectoral indices, Nifty Auto, Nifty Pharma and Nifty Auto touched new all-time highs in the previous week. At the same time, the growth in mid and small caps continued, with the BSE MidCap and BSE SmallCap indices posting gains of over 0.5% last week.
Also Read: FPI holding in Indian stocks hit a 10-year low of 16.6% in November
Vinod Nair, Head of Research at Geojit Financial Services, said, “Domestic indices traded within a range during the week with a positive bias. The Fed Reserve adopted a cautious stance, and the muted trend in European and German markets was also echoed in domestic markets .markets. Declining inflation and recent cooling jobs data in the US, along with falling US bond yields, have attracted foreign funds to the emerging market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The broader Indian market experienced some profit booking as investor attention shifted to the mainstream market, marked by a flurry of IPOs slated for the week. Sectors such as consumer goods and real estate took the lead, driven by a strong rebound in festive demand. However, the IT sector showed weak performance in response to weak global data. Despite the RBI’s scrutiny on unsecured loans of NBFCs, the banking index showed resilience this week,” he added.
Nifty 50: Key Levels to Watch
Rupak De, Chief Technical Analyst at LKP Securities, notes that the near-term support level for the Nifty 50 is at 19,700 points. As long as there is no breakout, the index is expected to maintain a sideways movement. Rupak De suggests that a drop below 19,700 could potentially trigger a market correction.
Conversely, a clear move above 19,900 could signal a big rally, potentially propelling the index to a new all-time high, he added.
Another volatile week for crude oil
On the commodity front, Brent crude futures experienced another volatile week, falling 0.47% to reach $80.23 per barrel, and this month so far, Brent crude futures have fallen 5.63%. WTI crude futures, on the other hand, saw a marginal gain of 0.16% to $76.16, and for the month of November, it is down 5.39%.
Several factors contributed to the decline in crude oil prices, including a larger-than-expected build-up in US oil inventories, sluggish economic activity in the EU and China, and the International Energy Agency’s indication that global oil markets may not be so tight. as initially projected for this quarter.
Additionally, the unexpected delay in the policy meeting on production of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) raised questions about the future course of crude production cuts.
Rupee Struggle
While domestic indices maintain positive ground, the Indian rupee faces headwinds, depreciating by 6 paisa to close at its all-time low of 83.40 against the US dollar on Friday.
Also Read: Rupee ends at a record closing low of 83.37 against the US dollar
The domestic unit ended last week with a fall of 0.12% at 83.34.
Insurance stocks are leading the charge
In a week marked by overall subdued market activity, a notable eight Nifty 500 stocks showed remarkable resilience, surging between 10 and 37%. The standout performers were mainly from the insurance sector, led by The New India Assurance Company, which recorded an impressive rally of 37.6% last week.
Most of these gains were realized during the Friday session, propelling the stock from ₹151.7 per to ₹209.40, a new 52-week high.
Following suit, General Insurance Corporation of India also rallied, witnessing an 18.6% increase. The stock hit a new 52-week high in Friday’s session at ₹316, closing the week at 307 per.
Shares of LIC stock registered their best intraday gain during the Friday session. The insurance giant experienced a significant 9.7% jump, reaching ₹677.65 apiece and hitting an intraday high of ₹682 during the business. Overall, the stock ended last week with a gain of 10.25%.
Also Read: LIC shares jump 9.7%, register biggest intraday gain since listing; this is why
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, said, “Despite muted markets, PSU Insurance stocks of LIC, GIC, and New India Assurance rallied after a long run, largely on the back of reports stating that the industry growth outlook was “positive” from “stable”.
“LIC has also projected double-digit growth over the last year and plans to launch new attractive products. New India Assurance is zooming after the insurer said analysts and institutional investors will meet senior management in Mumbai on November 29. GIC shares are also in demand . after the company said that AM Best reaffirmed the existing ratings and further assigned the India National Scale Rating (NSR) to the company.”
“Technically, LIC can retest 680 levels, after which we can expect some kind of profit-reserve test, while in GIC it can test 330 soon, and NIACAL has zoomed to 205 with an aim to test 220 soon,” he added.
Other stocks, including RattanIndia Enterprises, Latent View Analytics, Sterling and Wilson Renewable Energy, Vardhman Textiles, CG Power and Industrial Solutions, gave returns between 10 and 25.1% over the last week.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 25 Nov 2023, 11:28 IST
(tagsTo Translate)Indian markets