NALCO share price jumped by 9 percent during early trades. NALCO was star performer in a weak market as metal stocks witnessed strong rally on China stimulus measures. NALCO shares were trading at Rs 237 at the time of publication of this report. Indian markets were facing selling pressure with majority of selling in technology stocks while private banks were supporting the markets. PAYTM stock was trading down by almost one percent. The stock opened the session at Rs 771 and touched intraday high of Rs 778 before sliding to intraday low of Rs 758. At the time of publication of this report, PAYTM was trading at Rs 764. IRCTC shares were trading one percent lower. IRCTC is currently hovering around its 52-week lows and we can expect a rally from lower levels if the stock goes below Rs 700 levels.

Among other PSU stocks, IREDA (Indian Renewable Energy Dev Agency) share price was down by 2 percent in early trades. IREDA opened at Rs 192 but soon declined to intraday low of Rs 186. Railtel Corporation of India was trading 2 percent lower at Rs 364. The stock has touched intraday high of Rs 376.

PSU stocks continued to struggle with declining market capitalization and weak earnings, while the IT sector faced setbacks due to global monetary policy concerns. On a brighter note, companies like Neelam Linens and Brainbees highlighted investor optimism with impressive IPO performances and narrowing losses, respectively.

PSU Stocks Face Significant Decline

Public Sector Undertakings (PSUs) in India have experienced a notable decline, with their share in the country’s total market capitalization hitting an 11-month low in November 2024.

Market Capitalization Impact: PSU firms accounted for only 15.34 percent of India's total market capitalization in November, the lowest since December 2023.

Performance of Listed PSUs: Out of 103 listed PSU companies, five entities have seen their stock prices fall over 50 percent from recent 52-week highs, while 21 firms recorded declines of 40-49 percent.

Weak Q2 Earnings: Half of the 100 PSUs that reported September quarter earnings underperformed. Fourteen posted losses, while 29 reported a year-on-year decline in net profit, reflecting the challenges faced by the sector.

Nifty IT Falls 3% After Powell's Cautious Outlook

The Nifty IT index dropped by nearly 3 percent on concerns about prolonged higher interest rates after US Federal Reserve Chair Jerome Powell emphasized a measured approach to rate cuts.

Major Declines: Shares of TCS and Wipro fell over 3 percent each, contributing significantly to the index's decline.

Powell's Remarks: Powell cited steady economic growth, a resilient job market, and persistent inflation above the 2 percent target as reasons for holding off on aggressive rate cuts.

Neelam Linens Makes Strong Debut on NSE SME

Neelam Linens and Garments had a stellar listing on the NSE SME platform, opening at a 66.7 percent premium to its offer price.

Listing Details: The stock debuted at Rs 40 per share against the issue price of Rs 24, marking a significant premium.

IPO Success: The Rs 13 crore IPO was subscribed 91.97 times, driven by strong demand from retail investors (57.8 times), Qualified Institutional Buyers (15.4 times), and Non-Institutional Investors (273.5 times).

Company Background: Established in 2010, Neelam Linens specializes in manufacturing and exporting high-thread-count bedding and towels, catering to discount retail outlets in the USA and Australia. Its diverse product range includes bedsheets, pillow covers, and rugs.

Brainbees Shares Surge 7% as Losses Narrow

Shares of Brainbees Solutions Ltd, the parent company of FirstCry, gained over 7 percent as the company reported a significant narrowing of its Q2 losses.

Financial Performance: Brainbees posted a Q2FY25 revenue of Rs 1,904.9 crore, a 26.4 percent increase from Rs 1,506.88 crore in the same quarter last year. The net loss narrowed to Rs 63 crore from Rs 119 crore a year ago.

Steady Improvement: The Pune-based mother and baby products company also reduced its Q1FY25 losses to Rs 76 crore from Rs 110 crore in Q1FY24.

Market Presence: FirstCry had a strong debut on August 13, 2024, with its shares listing at Rs 651 on the NSE, a 40 percent premium over the IPO price of Rs 465.