Sensex, Nifty to open flat ahead of RBI policy; Zomato, IRCON, IIFL Sec, rate sensitive stocks eyed

The domestic benchmark indices Sensex and Nifty are seen opening flat on December 8, tracking a muted trend at GIFT Nifty. The GIFT Nifty was down 7 points, or 0.3%, at 21074, as compared to Nifty futures’ previous close of 21,081, signaling a subdued opening on Dalal Street. The stock market is expected to witness cautious trading ahead of the Reserve Bank of India (RBI) policy decisions which will be announced early today.

Snapping a seven-session winning streak, the Indian benchmark indices ended lower on Thursday as investors took some breather after a strong rally in the recent past. The BSE Sensex ended 132 points, or 0.19%, at 69,522, and the Nifty settled 36.50 points, or 0.17%, lower at 20,901, led by sell-off in FMCG and metal space.

Bucking the trend, the broader market extended rally, with the midcap and smallcap indices rising 0.66% and 0.28%, respectively.

The top five losers of the BSE Sensex pack were Bharti Airtel, Hindustan Unilever, Tata Steel, ITC, and Larsen & Toubro. On the other hand, Power Grid Corporation of India, UltraTech Cement, Titan Company, NTPC, and Maruti Suzuki India topped the gainers chart.

Key things to watch today

Global cues

The Asian market witnessed mixed trading on Friday despite a positive closing at Wall Street in overnight trade. Japan’s Nikkei 225 was down 1.7%, Hong Kong’s Hang Seng index slipped 0.3%, and Thailand’s SET Composite fell 0.8% in early trade.

Meanwhile, South Korea’s Kospi gained 0.8% and China’s Shanghai Composite rose 0.4%. Australia’s S&P ASX 200 index was also up 0.2%.

In the overnight trade, U.S. stocks ended higher, with the Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite rising 0.18%, 0.75%, and 1.37%, respectively.

RBI policy

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will announce their policy decisions at 10 am today after the conclusion of the three-day meeting which began on December 6. The RBI Governor Shaktikanta Das-led six-member MPC is widely expected to keep the benchmark interest rates unchanged in the fourth meeting for fiscal 2023-24, and the last meeting of the calendar year 2023. The RBI has kept the repo rate unchanged at 6.5% since February this year.

Stocks to watch

Rate sensitive stocks: The rate sensitive stocks such as auto, realty, and banking will be in focus today as the central bank will announce their monetary policy.

Zomato: SoftBank is likely to sell shares worth ₹1,125.5 crore in the online food delivery company via a block deal today. The floor price for the deal is ₹120.50 per share.

Five-Star Business Finance: A slew of foreign investors, such as Peak XV Partners, TPG and Matrix Partners, are reportedly looking to trim their stake in non-bank lender via a block deal. These three investors are planning to divest around 5.8% combined stake, with the upsize option of around 8.8%.

IIFL Securities: The Securities Appellate Tribunal (SAT) has set aside an order passed by the capital markets regulator SEBI that restrained broking company IIFL Securities from onboarding new clients for two years. The appellate tribunal has also reduced the financial penalty imposed on the company from ₹1 crore to ₹20 lakh.  

IRCON International: The Government of India has decided to exercise the greenshoe option in the offer for sale (OFS) issue and will sell an additional 4% stake in the state-owned firm.

Olectra Greentech: The electric bus manufacturer has bagged an order from Vasai Virar City Municipal Corporation, Mumbai, for the supply and maintenance of 40 electric buses.

TVS Electronics: The TVS Group company has secured an order of ₹35.58 crore from the office of the Commissioner of Customs (Audit), Chennai.

Container Corporation of India: The company has inked a deal with NTPC Vidyut Vyapar Nigam (NVVN) for setting up PV solar renewable energy projects in CONCOR terminals.

Birla Corporation: The Nomination and Remuneration Committee and Audit Committee of the company has approved the extension of the term of service of Aditya Saraogi as the chief financial officer of the company for an additional four years, effective from February 1, 2024.

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