Domestic equities positive after S&P raises India’s forecast

  • IANS
  • Stock Market News
Domestic equities positive after S&P raises India’s forecast
Credit: © Reuters.

Mumbai, Nov 28 (IANS) Domestic equities were positive on Tuesday despite mixed global cues, after global rating agency S&P raised India's GDP growth forecast for FY24 by 40 bps to 6.4 per cent, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal (NS: MOFS ) Financial Services. Nifty opened higher and sustained its upward move to close with gains of 95 points, or 0.5 per cent, at 19890 levels, while the Sensex jumped 204 points, or 0.31 per cent, to end at 66,174 levels.

Majority of the sectors ended in green with action seen in oil & gas, metals, PSU bank and auto.

Oil marketing companies are witnessing renewed interest on account of fall in oil price ahead of the OPEC+ meeting this week. Mining stocks will remain in focus as the government plans to launch its first tranche auction of 20 blocks of critical and strategic minerals on Wednesday, Khemka said.

Even auto stocks are likely to remain in the limelight amid strong volume sales data for OEM in November due to buoyant festive demand. Further, the momentum is expected to continue with record weddings expected over the next one month, he added.

On Wednesdat, the state-owned Indian Renewable Energy Development Agency (IREDA) is anticipated to make its public debut with about 34 premium. This indicates that in comparison to the issue price of Rs 32 per share, the listing price is anticipated to be about Rs 43, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

In addition to being the first of the five initial public offerings that concluded this past week, this would be the first listing for a government entity since Life Insurance Corporation (NS: LIFI ) of India in May 2022.

Among the five IPOs, Tata Technologies attracted the most interest in the stock market following an astounding subscription demand of around 70 times for the issue.

Given the tremendous demand from investors and the investor-friendly pricing, which highlights the Tata Group's history of rewarding shareholders, a significant listing gain of more than 75 per cent may be anticipated relative to the issue price of Rs 500 per share, Vidwani said.

Based on street assumptions, there's a good chance that Tata Technologies might be a doubler contender after listing.

Political parties are promising universal healthcare in their home states; if this materialises, PSUs will gain business from private businesses. PSUs might receive a sizable portion of new business, which set off a rise in NIA and GIC, Vidwani said.

--IANS

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