Sensex Today Ends 378 Points Lower

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The markets opened the gap up and continued on its winning run in early trade but later came under selling pressure to close in red.

Both the benchmark indices hit their new all-time highs today.

At the closing bell, the BSE Sensex dipped by 378 points (down 0.5%).

Meanwhile, the NSE Nifty closed lower by 21 points (down 0.4%).

Axis Bank, Wipro, and ITC were among the top gainers today.

Maruti Suzuki, Reliance, and Infosys, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 21,034, down by 107 points, at the time of writing.

Border indices ended in red with the BSE MidCap index down by 0.4% while the BSE SmallCap index tanked by 0.3%.

Sectoral indices ended in red with stocks in the realty sector, oil & gas sector, and energy sector witnessing most of the selling.

Shares of Nestle, TCS, and ICICI bank hit their respective 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today. This should help you keep updated with the latest developments...

Asian share markets ended on a positive note. The Shanghai Composite ended 0.4% higher while the Nikkei ended 0.2% marginally higher. The Hang Seng soared 1.7%.

The rupee is trading at 83.39 against the US$.

Gold prices for the latest contract on MCX are trading in green by 0.3% at Rs 61,290 per 10 grams.
 

Why Yes Bank Share Price is Rising

In the news from the banking sector. Today, on 12 December 2023, shares of Yes Bank soared 7% in early trade. However, due to bearish market sentiment, the stock slightly corrected from its day high and closed in green.

The reason behind today's rise was driven by the bank's efforts to find buyers for its corporate and retail loans.

Yes Bank has issued a notice inviting expressions of interest (EoI) for the proposed sale of non-performing assets (NPAs) totaling Rs 42.4 billion (bn). The bank aims to determine an anchor bid for the sale of stressed assets, all of which will be offered on an upfront 100% cash basis.

Eight companies turned NPAs between September 2019 and June 2022, including Katerra India, Indrajit Power, ATS Real Worth, ATS Infrastructure, ATS Real Worth, ATS Township, Umritha Infrastructure Development, and UK-based Malvern Travel, and Prometheon Enterprises.

As of September 2023, Yes Bank had gross NPAs of Rs 43.4 bn, with corporate banking NPAs at Rs 22. 4 bn, mid-corporate NPAs at Rs 2.2 bn, small and medium enterprises (SME) NPAs at Rs 4.5 bn, and retail NPAs at Rs 14.1 bn.

In the July-September quarter, Yes Bank reported a 47.4% year-on-year (YoY) increase in net profit, while net interest income was up 3.3% YoY.

Here is how the share has performed in one year.


Hindalco Plans to Set Up a New Plant

Moving on to news from the metal sector, Hindalco was in the news today.

On Tuesday, 12 December 2023, the share price of Hindalco surged over 3% and recorded a new 52-week high.

The reason behind this rally was that the company is planning to establish a battery foil manufacturing facility in Odisha.

Hindalco wants up to Rs 8 bn in the new battery foil plant, scheduled to be commissioned by July 2025.

Initially, the plant will produce 25,000 tonnes of the resilient product crucial for Lithium-ion and Sodium-ion cells. The facility will be located next to a 25 megawatt (MW) solar power plant and will have access to additional solar energy from a 400 KV National Grid connection, aligning with the government's green initiative to reduce carbon emissions and promote sustainable growth.

These plans reflect Hindalco's strategy to tap into the growing electric vehicle (EV) market.

The company is also collaborating with original equipment manufacturers (OEMs) to co-develop critical components for EVs, such as battery enclosures, motor housings, busbars, structural and safety components, and lightweight load bodies.

Satish Pai, managing director of Hindalco Industries, emphasized the importance of localizing raw materials in strategic sectors like battery manufacturing. He stated that the new battery foil mill investment is part of Hindalco's efforts towards building a self-reliant India.

The upcoming plant will enable Hindalco to expand its manufacturing capacity for high-quality aluminum foil used in rechargeable batteries, catering to the growing demand in the electric vehicle and energy storage systems market.
 

Zomato Plans to Foray into Catering Business

Moving on to news from the e-commerce sector, Zomato is planning to diversify into the catering business by utilizing its existing network of restaurant partners. They have an aim to handle large orders as part of its broader strategy to expand its service offerings.

Rakesh Ranjan, the CEO of the food delivery segment at Zomato, mentioned that the company is exploring additional features for its loyalty program, Gold, despite concerns about potential impacts on profitability.

Today, on 12 December 2023, the share price of Zomato tanked over 2%. However, it has offered over 91% in 2023 so far.


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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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