Stock Market Live Updates: Nifty, Sensex Near Day’s High; IT, Defence Sectoral Gainers
Good afternoon readers. Nifty and Sensex saw a positive start to the Christmas Week. Nifty rose 0.70% at 26,148.15 but pared gains to trade 0.67% higher at 26,141.35 as of 12 p.m. Sensex rose 0.63% to 85,461.19 before it pared gains to trade 0.55% higher at 85,397.17. With all sectors in the green, Nifty Defence and Nifty IT led the gains. Bharti Airtel and ICICI Bank added the most to Nifty 50 index,
Nifty and Sensex Performance
Nifty and Sensex have been performing well in recent times, with the Nifty rising to a new high of 26,148.15. The Sensex also rose to a new high of 85,461.19. The positive start to the Christmas Week is a good sign for the Indian stock market, and investors are hopeful that the market will continue to perform well in the coming days.
IT and Defence Sectors Lead the Gains
The IT and Defence sectors were the top gainers in the market, with the Nifty IT index rising by 1.2% and the Nifty Defence index rising by 1.1%. The IT sector has been performing well in recent times, with many companies in the sector reporting good quarterly results. The Defence sector has also been doing well, with the government’s focus on defence manufacturing and procurement giving a boost to the sector.
Small-Cap Stocks Take the Lead
Small-cap stocks are once again taking the lead as the Indian stock market heads into the year-end, with historical trends pointing towards a strong Santa Claus Rally for the segment. Data shows that small caps have consistently outperformed mid-caps and large caps during this seasonal period, reinforcing investor optimism as the calendar turns.
The Santa Claus Rally typically refers to the last five trading sessions of December and the first two sessions of January. Over this window, small caps have delivered a remarkable 100%-win rate, making them the most consistent performers among market segments.
Meesho Locked in Lower Circuit
Meesho is locked in lower circuit on Monday. There are several reasons for this, including:
- Low free-float, limited supply of shares in the market
- Pullback following intense early demand, short-covering pressures.
- Path to profitability still a question mark?
- Valuations 3 year forward at 40x EV/EBITDA in line with Eternal, Nykaa but very expensive
- Intensifying competition and higher regulatory risk around product quality
Investors should be cautious when investing in Meesho, as the company’s financials and valuation are a concern.
Abhay Agarwal on Electronics Manufacturing Services (EMS) Sector
At a time when multiple Electronics Manufacturing Services (EMS) sector has faced pressure in the stock market, market veteran Abhay Agarwal believes it is time to invest in the sector rather than exiting it.
Speaking to NDTV Profit, Agarwal, who is the Managing Director of Piper Serica, explained that big corrections are part and parcel of the small and midcap space and should not tempt investors to fully exit the sector.
Watch the interaction here: Abhay Agarwal on Electronics Manufacturing Services
Ceigall India Shares Hit One-Month High
Ceigall India shares hit one-month high after it emerged as L-1 bidder for 130 MW solar power project in Madhya Pradesh. The project is worth Rs 550 crore.
The scrip rose as much as 4.81% to Rs 255.60 apiece on Monday, the highest level since Nov. 12. It pared losses to trade 2.51% higher at Rs 249.99 apiece, as of 1:32 p.m. This compares to a 0.72% advance in the NSE Nifty 50 Index.
It has fallen 30% in the last 12 months.
Investors can learn more about the Indian stock market trends and how to make informed investment decisions by visiting our website.
Conclusion
In conclusion, the Indian stock market is performing well, with the Nifty and Sensex rising to new highs. The IT and Defence sectors are leading the gains, and small-cap stocks are taking the lead as the market heads into the year-end. However, investors should be cautious when investing in Meesho, as the company’s financials and valuation are a concern.
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