Markets Brace for Tepid Opening Amid Slowing GDP Growth
Key stocks are expected to be in focus as the domestic equity markets anticipate a flat-to-positive opening on Monday, December 2. The GIFT NIFTY futures, trading at 24,341.50—down 58 points or 0.24%—hint at a modest 37-point rise for the NIFTY50 index. However, market sentiment may face pressure from India’s weaker-than-expected Q2 FY25 GDP data, which revealed a two-year low growth rate of 5.4% during the July-September quarter. Despite the slowdown attributed to underperforming manufacturing and mining sectors and tepid consumption, India retained its status as the fastest-growing major economy globally. Investors are likely to keep an eye on these developments while monitoring key stock movements.
Corporate Highlights: Mergers, Strategic Deals, and Financial Updates
Cipla: The pharmaceutical giant’s promoters are poised to offload up to a 1.72% stake through block deals, with an offer price set at ₹1,442 per share, amounting to an estimated ₹2,000 crore.
Aster DM Healthcare: A significant merger with Blackstone-backed Quality Care India Ltd is underway through a share-swap arrangement. The combined entity will rank among India’s top three hospital chains, boasting 38 hospitals with over 10,150 beds spread across 27 cities.
RBL Bank & Bajaj Finance: The two companies have ended their co-branded credit card agreement. While the issuance of new cards has ceased, the 34 lakh existing cardholders will continue to enjoy the benefits as per the original terms.
GAIL: The state-owned utility has inked a long-term charter agreement with Kawasaki Kisen Kaisha Ltd for a modern LNG ship with a 1,74,000 cubic meter capacity. The vessel is under construction in Korea and expected to bolster GAIL’s LNG shipping capabilities.
RVNL: Rail Vikas Nigam Ltd emerged as the lowest bidder for a ₹642.56 crore distribution infrastructure project in Punjab, focusing on HT/LT infrastructure loss reduction under a revamped distribution sector scheme.
Sectoral Developments and Stock-Specific Updates
Key stocks: Auto stocks, manufacturing stocks, mining stocks, consumer stocks.
- Maruti Suzuki India reported a 10% YoY sales increase, driven by domestic passenger vehicle sales growth of 5%.
- Tata Motors achieved a marginal rise in overall sales at 74,753 units, with a 2% growth in passenger vehicles, including EVs.
- Hyundai Motor India, however, saw a 7% YoY decline in total sales, impacted by a 20% slump in exports.
- Hero MotoCorp faced a 6.4% YoY drop in sales, while its exports rose 30%.
Cochin Shipyard: Signed a ₹1,207.5 crore contract with the Ministry of Defence for refitting and dry docking INS Vikramaditya, enhancing the aircraft carrier’s combat capabilities.
Greaves Cotton: Approved the IPO for its subsidiary, Greaves Electric Mobility, featuring a fresh equity issue alongside an offer for sale by existing shareholders.
Biocon: Its subsidiary, Biocon Biologics, received USFDA approval for YESINTEK, a biosimilar to Stelara, marking progress in treatments for autoimmune diseases.
Other Updates:
- McLeod Russel India faced a ransomware attack, prompting immediate cybersecurity measures.
- Jet Fuel Prices: Aviation turbine fuel saw a second consecutive hike, up by 1.45%, potentially impacting airline stocks like IndiGo and SpiceJet.
Outlook
As markets react to mixed corporate developments and subdued GDP growth, investor sentiment may waver. Key stocks like Cipla, Aster DM Healthcare, Maruti Suzuki, and GAIL will remain under focus, alongside updates from key sectors such as healthcare, infrastructure, and energy.
