Newsletter: 23rd December 2024

UltraTech's Game-Changing Deal

Aaj Ka Bazaar

Major U.S. stock indexes ended a volatile session little changed on Thursday, although the Dow snapped a 10-day losing streak. The S&P 500 and Nasdaq were slightly in the red by day’s end, extending Wednesday’s sharp selloff tied to a signal from the Federal Reserve that it may deliver fewer interest rate cuts in 2025 than it had earlier projected. Asian shares were pinned near three-month lows on Friday as investors awaited key U.S. inflation data that could either ease or worsen concerns about price pressures, while the dollar towered at two-year peaks. Japan’s Nikkei rose 0.2% on Friday and is up a whopping 16% for the year, in part due to the weakness in the yen, which has depreciated 12% in 2024 and drew intervention warnings again from Japanese authorities. Considering the global market cues, the Indian benchmarks will likely have a negative start, Indian shares are set for a muted open on Friday after the previous session’s declines on concerns over a slower pace of rate cuts by the U.S. Federal Reserve, while IT stocks are likely to find support after solid results by U.S. peer Accenture. On a stock-specific note, GE Vernova T&D will be in focus as the company has received an order worth Rs. 400 crores from Sterlite Grid 32 Ltd.

Markets Around Us

BSE Sensex –78,575.73 (0.75%)

Nifty 50 – 23,747.15 (0.68%)

Bank Nifty – 51,125.00 (0.72%)

Dow Jones – 42,866.59 (0.08%)

Nasdaq – 19,553.28 (0.93%)

FTSE – 8,084.61 (-0.26%)

Nikkei 225 – 39,034.66 (0.86%)

Hang Seng – 19,819.85 (0.50%)

Sector: : Cement

UltraTech Deal Boosts India Cements

India Cements’ share price surged nearly 11% on December 23 after the Competition Commission of India (CCI) approved UltraTech Cement’s ₹7,000-crore acquisition deal. The approval, granted on December 20, allows UltraTech Cement, led by Kumar Mangalam Birla, to acquire a 32.72% stake in India Cements from its promoters and an additional 26% through an open offer. This deal strengthens UltraTech’s market leadership amidst growing competition from the Adani Group, which has been expanding its capacity through acquisitions. Following the announcement, India Cements’ shares saw a sharp rise to ₹376.20 per share, while UltraTech Cement’s shares traded flat at ₹11,392.95. The approval comes shortly after CCI sought clarifications from UltraTech regarding the deal, highlighting its significance in reshaping market dynamics in the cement industry.

Why it Matters:

This deal consolidates UltraTech Cement’s position as a market leader, enhancing its capacity amidst increasing competition from the Adani Group. It marks a significant shift in the cement industry with strategic acquisitions driving growth. For traders, it signals opportunities in India Cements due to its sharp price surge.

 NIFTY 50 GAINERS

JSWSTEEL – 934.90 (1.91%)

TATASTEEL – 142.62 (1.38%)

SHRIRAMFIN – 2915.20 (1.32%)

 

NIFTY 50 LOSERS

APOLLOHOSP – 7223.00 (-0.40%)

SBILIFE – 1395.25 (-0.38%)

HDFCLIFE – 621.95 (-0.30%)

Sector: : Pharmaceuticals

UK Approval Boosts Aurobindo pharma

Aurobindo Pharma’s shares rose in early trade on December 23 after its step-down subsidiary, CuraTeQ Biologics, received marketing approval from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) for Bevqolva, a biosimilar of bevacizumab. Bevqolva, available in 100 mg and 400 mg vials, is used to treat various cancers, including colorectal, lung, renal, cervical, ovarian, and other advanced cancers. At 9:36 am, the stock was trading at ₹1,245.95, up 0.42%. This approval adds to Aurobindo’s recent achievements, including a positive opinion from the European Medicines Agency for another biosimilar and USFDA approval for a cancer treatment drug. However, the company also received two observations from the USFDA after an inspection at its API facility. These developments highlight Aurobindo’s growing presence in the global oncology market while maintaining regulatory focus, making it a stock to watch for traders and investors.

Why it Matters:

The UK MHRA approval strengthens Aurobindo Pharma’s oncology portfolio, enhancing its presence in the high-demand biosimilar market. It showcases the company’s progress in expanding globally with innovative cancer treatments. For investors, it signals growth potential amid regulatory achievements and product launches.

Desh Duniya Bazaar

Around the World

Asian stocks rose on Monday, following Wall Street’s rally after softer U.S. inflation data fueled hopes of falling interest rates in 2025. Japanese markets gained, with Honda up 2% on reports of a potential merger with Nissan, aiming to create the world’s third-largest automaker by sales. Broader Asia saw advances, including a 1.2% rise in Australia’s ASX 200, driven by News Corp’s sale of Foxtel, and a 1.5% jump in South Korea’s KOSPI, as investors bought discounted stocks. Chinese indices rose slightly as Beijing assured increased fiscal spending in 2025. Singapore’s Straits Times gained 1.1%, while India’s Nifty 50 futures hinted at a positive open after last week’s losses. Optimism over U.S. inflation, potential mergers, and regional fiscal policies drove the gains across markets.

Option Traders Corner

 Max Pain

Nifty 50 – 23,772

Bank Nifty – 52,000

Nifty 50 – 23,730 (Pivot)

Support – 23,994, 23,201, 22,886

Resistance – 23923,014, 24,258, 24,451

Bank Nifty – 50,999 (Pivot)

Support – 50,369, 49,979, 49,349

Resistance – 51,839, 52,018, 52,408

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

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