Top performers include Adani Ports and JSW Steel, leading the rally in a positive market session
The Indian stock market demonstrated strong momentum on December 3, 2024, as the benchmark indices BSE Sensex and Nifty 50 posted gains during the morning trading session. Optimism around global cues, sectoral performances, and upcoming domestic policy announcements influenced investor sentiment.
Key Indices Performance
BSE Sensex: Up 486 points (+0.61%) at 80,734.64 at 11 AM.
Nifty 50: Higher by 136 points (+0.56%) at 24,412.
The gains were supported by advances in heavyweights such as Adani Ports, JSW Steel, and HDFC Bank. Despite overall positive sentiment, some counters like ITC and Bharti Airtel witnessed declines.
Sectoral Insights
Top Gaining Sectors
PSU Bank Index: Leading with a gain of 1.38%, driven by renewed investor interest in public sector banks.
Metal Sector: Up as steelmakers like JSW Steel and Tata Steel recorded notable gains.
Realty Sector: Increased demand in the real estate sector boosted stocks, further fueled by robust quarterly results.
Oil and Gas: Positive momentum was seen, supported by stable global oil prices and strong buying interest.
Lagging Sectors
FMCG: Down 1.33%, making it the worst-performing sector, dragged by declines in ITC and other major players.
Consumer Durables and Pharma: Both indices experienced minor setbacks as investors shifted focus to other segments.
Stock-Specific Highlights
Top Gainers on BSE Sensex
Adani Ports & SEZ: Gained 2.50%, leading the rally with strong trading volumes.
JSW Steel: Rose 2.39%, supported by higher global steel prices.
HDFC Bank: Advanced, reflecting improved market sentiment toward the financial sector.
SBI: Posted gains, benefiting from rising demand in the banking space.
Tata Steel: Continued its upward trajectory due to robust demand in the metal sector.
Top Losers on BSE Sensex
ITC: Declined 2.85%, impacted by concerns over regulatory changes.
Bharti Airtel: Fell as profit-booking took center stage.
Sun Pharma: Experienced minor losses amid lackluster investor interest.
Kotak Mahindra Bank: Dropped slightly due to weaker trading momentum.
Titan: Eased after recent gains, reflecting sectoral rotation.
Performance on Nifty 50
Top Gainers: Led by JSW Steel (+2.39%), followed by Shriram Finance, Adani Ports, HDFC Bank, and ONGC.
Top Losers: ITC (-2.37%), followed by Bharti Airtel, Tata Consumer, Sun Pharma, and Power Grid Corp.
Global Market Trends
Asian Markets
Positive cues from Wall Street translated into gains across Asia-Pacific markets.
Japan’s Nikkei 225: Up 1.7%, buoyed by tech stocks and economic optimism.
South Korea’s Kospi: Advanced 1.53%, while the Kosdaq rose 1.75%.
Australia’s S&P/ASX 200: Increased 0.66%, supported by gains in the financial and mining sectors.
In contrast, Chinese indices showed mixed performance.
Hang Seng Index: Down 0.35%, impacted by profit-taking.
CSI 300: Dropped 0.43%, while the Shanghai Composite edged up by 0.03%.
US and European Markets
Wall Street: Mixed performance overnight, with the Nasdaq Composite up 1%, the S&P 500 gaining 0.24%, and the Dow Jones Industrial Average slipping 0.29%.
European Equities: Closed higher by 0.66%, despite political uncertainties in France.
Domestic Economic Developments
RBI Policy Anticipation
Investors remain focused on the upcoming RBI Monetary Policy Committee (MPC) meeting, with decisions expected on December 6. Market participants anticipate actions to maintain liquidity and address inflationary pressures.
Economic Growth Outlook
India’s Chief Economic Advisor emphasized that the nation’s potential GDP growth lies between 6.5% and 7%, supported by structural reforms implemented over the past decade. The government is also preparing fresh measures to boost economic growth in the second half of FY25.
Block Deal Activity
The domestic markets are witnessing a slowdown in secondary share sales, with block deal activity in November falling to a six-month low of Rs 25,669 crore, compared to the monthly average of nearly Rs 57,000 crore earlier in the year.
Commodity and Currency Markets
Gold
Gold prices slipped 0.6%, trading at $2,637 per ounce, pressured by the strength of the US dollar. The precious metal faced its worst monthly performance since September 2023, declining over 3% in November.
Oil
Oil prices remained steady as optimism around China’s factory activity offset concerns about potential rate hikes by the Federal Reserve.
Currency
The dollar index gained 0.33%, trading at 106.39, supported by strong US economic data and comments from Federal Reserve officials. The euro weakened by 0.75%, trading at $1.0498, as political uncertainty in France weighed on sentiment.
Global Economic Highlights
United States
Manufacturing activity contracted in November but showed improvements in new orders, marking the first growth in eight months.
Traders are eyeing the monthly jobs report due on Friday, which could influence the Federal Reserve’s rate decisions on December 18.
Europe
Political turmoil in France added volatility to European equities.
Broader European shares managed to close higher despite mixed signals.
China
Positive manufacturing data boosted Chinese stocks, with mainland indices rising by 0.8%.
Broader Market Indicators
Midcap and Smallcap Indices
The Nifty Midcap 100 rose by 0.45%, while the Nifty Smallcap 100 gained 0.40%.
Broader market performance highlighted continued investor interest in mid- and small-cap stocks.
Global Equities
The MSCI All-World Index edged up 0.3%, reflecting cautious optimism in global markets.
Key Takeaways
The Indian stock market started the day on a positive note, with BSE Sensex and Nifty 50 posting notable gains.
Sectoral performance was led by PSU Banks, Metals, and Realty, while FMCG and Pharma sectors lagged.
Global markets exhibited mixed trends, with gains in Asia-Pacific indices and muted movements in Europe and the US.
Investors remained focused on the RBI policy meeting, global cues, and macroeconomic developments.
Commodities and currencies reflected the impact of US dollar strength and market expectations around the Federal Reserve’s actions.
The day’s trading session highlighted resilience in Indian equities amidst global uncertainties, with investors keeping a close watch on upcoming economic data and policy announcements.
