Public sector banks were trading positive on Thursday amid flat overall market trends. NSE Nifty was trading at 23,745 at the time of publication of this report. Among public sector banks, SBI and PNB were trading almost flat while IDBI, Indian Bank and Canara Bank were trading strong.

Indian Markets: A Post-Christmas Trading Snapshot
Indian stock markets exhibited a lackluster performance on the trading day after Christmas, with indices showing limited movement. Thin trading volumes are expected throughout the holiday week due to reduced participation by foreign institutional investors (FIIs). However, volatility in specific stocks remains a possibility. Noteworthy developments include sectoral trends, the remarkable rise of Newgen Software's stock, and post-IPO activities for NTPC Green Energy and MobiKwik Systems. Here’s an in-depth analysis:

Flat Trading Amid Low Volumes

Muted Market Movement:
Indian markets opened on a subdued note, with major indices trading almost flat. The absence of significant FII activity during the holiday week has contributed to the lackluster performance.

Sectoral Underperformance:
Barring auto and PSU banks, most sectoral indices are in the red. Midcap and Smallcap indices on the BSE declined by 0.5 percent each, highlighting broader market weakness. Active stocks on the NSE included names such as Mobikwik, IGIL, Intellect Design, Mazagon Dock, and Vishal Mega Mart, indicating concentrated interest in a few select counters.

Newgen Software: A Rising Star

Strong December Rally:
Newgen Software has emerged as the top performer in the NSE 500, with its shares soaring 44 percent in December. This impressive growth underscores the company’s strong business fundamentals and strategic initiatives.

Middle East Expansion:
To strengthen its foothold in the Middle East, Newgen has focused on acquiring new clients and upselling to its existing customer base. The company’s introduction of Islamic retail and SME financing highlights its ability to cater to niche markets in the region.

Strategic Growth Focus:
The management has set ambitious targets, aiming for 50 percent of growth through upselling. With H1 FY25 order book growth of 20–22 percent, Newgen is also building competencies in AI, generative AI (GenAI), and machine learning to stay ahead of industry trends.

NTPC Green Energy: Post-Lock-In Volatility

Stock Performance:
Shares of NTPC Green Energy dropped over 4 percent as the one-month lock-in period for anchor investors expired. With 1.83 crore shares (2 percent of the company) becoming eligible for trading, investors now have the option to sell up to 50 percent of their holdings.

Profit-Taking Opportunity:
Despite the decline, the stock has gained 9 percent since its debut, offering ample opportunities for investors to book partial profits. It is important to note that the end of a lock-in period does not mandate sales but merely provides eligibility for trading.

MobiKwik Systems: Momentum Post-IPO

Block Deal Boost:
Shares of One MobiKwik Systems surged over 7 percent in morning trade on December 26, driven by a block deal worth Rs 118 crore. Approximately 18.6 lakh shares (2.4 percent equity) were exchanged at an average price of Rs 635 per share, representing a 4.2 percent premium over the previous session's close.

Impressive IPO Performance:
The Gurugram-based fintech player listed with a premium of nearly 60 percent on December 18. The public issue, comprising entirely fresh equity shares worth Rs 572 crore, saw no offer-for-sale component.

Robust Gains:
Since its listing price of Rs 440 per share, the stock has climbed over 50 percent within six trading sessions, reflecting strong investor confidence and growth potential in the digital payments space.