What's Happening With The Stock Market Today?
hint: A LOT
Hello there, visionary!
"Small steps every day lead to giant leaps someday," and today, we’re here to be part of your leap toward success.
This Tuesday, we’re serving up insights to help you stay inspired and informed. Ready to turn those big dreams into bigger realities? Let’s get started!
Top headlines of the day
📌 Sensex drops 807 points, Nifty falls 1%
The main culprits? Heavyweights like Reliance Industries, Infosys, and HDFC Bank dragged the indices down as investors stayed cautious ahead of the US Federal Reserve's meeting on December 18. Everyone’s waiting for clues on the Fed’s rate cut plans.
However, mid and small-cap stocks held up much better, losing only 0.06% each.
Why the caution? The FOMC outcome is in focus. Markets have already priced in a 25 basis point rate cut, so the real buzz will be around what the Fed chief has to say. A surprisingly hawkish tone could rattle markets, but experts think that’s unlikely.
So, what is the FOMC outcome?The Federal Open Market Committee (FOMC) is convening to deliberate on monetary policy, with a decision expected on December 18. Market consensus anticipates a 0.25% reduction in the federal funds rate, bringing it down to a target range of 4.25% to 4.5%.
This anticipated cut would mark the third such adjustment since September, reflecting the Federal Reserve's ongoing efforts to balance economic growth with inflation control.
📌 Vishal Mega Mart IPO allotment status is out
The Vishal Mega Mart IPO was a massive hit with investors, getting oversubscribed by 27.28 times! The subscription window opened on December 11, 2024, and wrapped up by December 13, 2024 with a price band set at ₹74-₹78 per share. The company raised a whopping ₹8,000 crore through an Offer for Sale (OFS) of 102.56 crore shares.
So, what’s next? The allotment process is done, and if you applied, you can expect shares to be credited to your demat account today.
📌 Should you apply for the International Gemmological Institute IPO?
The International Gemmological Institute (IGI) IPO, which kicked off on 13 December, wraps up today, 17 December - so it’s the final call for investors to get in. IGI is looking to raise a whopping ₹4,225 crore through this offering, with ₹1,475 crore from fresh shares and ₹2,750 crore from an offer for sale. The price range? ₹397 to ₹417 per share, and investors can apply in lots of 35 shares.
As of today, the IPO has seen decent traction—it’s 1.16 times subscribed so far. The retail investors are leading the pack with a 3.53x subscription, followed by non-institutional investors (1.17x).
📌 HDFC Bank gets warning over non-compliance with listing regulations
The issue? The bank delayed disclosing the resignation of Arvind Kapil, the Group Head of Mortgage Business. They announced it on April 30, 2024, but there was a three-day gap, which goes against Sebi's rules that require companies to report such changes within 12 hours. This is actually the second warning HDFC Bank has received from Sebi this week for regulatory issues.
📌 Swiggy is soaring
Swiggy's stock jumped over 6% on December 16 after Axis Capital gave it a 'Buy' rating with a target price of ₹640, which is a 20% upside from its previous close of ₹532.35. The brokerage believes Swiggy is a strong investment, especially with its position as India's second-largest player in both quick commerce and food delivery. They also pointed out that Swiggy’s current valuation is 27% lower than Zomato’s, but that’s justified given Swiggy’s smaller scale and delayed profitability.
So, that’s it from me today!
See ya 👋
