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RBI Holds Repo Rate Steady as PSU Banks Gain Amid Market Fluctuations

Nifty and Sensex traded flat on December 6 as the RBI maintained the repo rate at 6.5% for the eleventh consecutive time, while cutting the CRR by 50 basis points to inject Rs 1.16 lakh crore into the system. PSU banks, auto, and FMCG stocks gained, with Bajaj Auto, Axis Bank, Titan Company, BPCL, and ITC leading the Nifty's top gainers. The market showed resilience amid a choppy session, with 2,076 shares advancing against 1,289 declining.

IGL Board to Consider Bonus Shares Amid Share Price Decline

IGL's board will meet on December 10 to consider a bonus share issue for equity shareholders, following a significant drop in share prices due to reduced APM supply. The company recently declared an interim dividend of Rs 5 per share, while both IGL and MGL shares have fallen over a third from their yearly highs after the Centre's decision to cut gas allocations to city distributors.

Zomato to join Sensex replacing JSW Steel from December 23

Zomato will replace JSW Steel in the Sensex index starting December 23, as announced by BSE. Additionally, several changes will occur in other indices, with companies like Ashok Leyland and IDFC First Bank being dropped from BSE 100, while Jio Financial Services and others will be added. In the BSE SENSEX 50, HDFC Life, BPCL, and LTI Mindtree will be replaced by Zomato, Jio Financial, and HAL.

Ramkrishna Forgings poised for growth with UBS target price of 1500 rupees

Ramkrishna Forgings has seen a 33% increase in share value in 2024, significantly outperforming the Nifty 50"s 8% rise. UBS projects a potential upside of nearly 60%, setting a target price of ₹1,500, driven by factors such as EV penetration, recent acquisitions, and growth in various sectors. The company reported a 17.2% revenue growth to ₹1,054 crore and a net profit surge of 131% to ₹190 crore in Q2 FY24, bolstered by a one-time gain from a subsidiary sale.
10:20 19.11.2024

divergent trends in stock valuations for index inclusion and exclusion

A significant trend has emerged where stocks entering the Nifty 50 are considerably more expensive than those exiting. With 45 stocks approved for the F&O segment, Zomato and Jio Financial Services are likely to join the index by March, despite their high trailing P/E ratios of 307x and 118x, compared to Eicher Motors and BPCL"s 25.5x and 9.9x, respectively. Since FY18, inclusion stocks have had a P/E of around 60x, six times higher than the median P/E of exclusion stocks at approximately 10x.

markets decline for seventh consecutive session as major stocks fall

Markets closed in the red for the seventh consecutive session, marking the longest losing streak since February 2023. The Nifty 50 index saw significant declines, with BPCL, TCS, Infosys, Trent, and Dr Reddy's Labs dropping 2.5-3 percent. In contrast, Hindalco, Hero MotoCorp, Tata Steel, HUL, and M&M emerged as top gainers, rising 1.5-4 percent.

Nifty reports single-digit earnings growth for second consecutive quarter

Nifty companies reported a 4% year-on-year profit growth in Q2, marking the second consecutive quarter of single-digit growth, driven by SBI, Hindalco, ONGC, ICICI Bank, and Axis Bank. However, underperformance from BPCL, JSW Steel, and others offset gains, with consumption and asset-quality stress in BFSI sectors noted as weak spots. FY25 earnings projections have been downgraded by 7%, with a mere 5% growth expected, the weakest since FY20.
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