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Stock Market Update December 26, 2024 – Indian equity markets traded in a muted range on Thursday, with benchmark indices BSE Sensex and Nifty50 showing slight gains amid a lack of significant domestic or international triggers. The broader sentiment remained cautious as investors assessed global economic cues and market trends.
Sensex and Nifty Performance
At midday, the BSE Sensex rose 95.21 points, or 0.12%, reaching 78,568, while the Nifty50 climbed 38.75 points, or 0.16%, to trade at 23,766.40. After the opening bell, most stocks were in the green, led by gains in banking shares. SBI recorded a 1.13% rise, leading the pack, followed by Kotak Mahindra Bank, ICICI Bank, Maruti Suzuki India, and Axis Bank. Only Asian Paints and Tech Mahindra saw marginal declines, down 0.32% and 0.02%, respectively.
The Nifty50 showed similar trends, with only five stocks trading lower, including Asian Paints, Dr. Reddy’s, Cipla, Trent, and TCS. On the gaining side, BPCL rose 1.37%, followed by SBI, ICICI Bank, Maruti Suzuki, and Axis Bank.
Sectoral Indices Show Mixed Trends
The banking sector outperformed, with the Nifty Bank index gaining 0.82%, supported by strong performances in Nifty PSU Bank and Nifty Private Bank, which rose 0.99% and 0.82%, respectively. The Financial Services and Auto indices also contributed to the upward momentum. FMCG, Metal, IT, Healthcare, Consumer Durables, and Oil indices traded positively, reflecting steady investor sentiment in these sectors.
On the downside, Media, Pharma, and Realty indices faced pressure, showing losses for the day. Broader market indices also saw gains, with the Nifty Smallcap 100 and Midcap 100 advancing by 0.22% and 0.15%, respectively.
IPO Activity and Primary Market Developments
The IPO subscription window for Unimech Aerospace and Manufacturing Limited in the mainline section closed today, while Identical Brains Studios Limited IPO listed in the SME segment. Other IPOs in focus included Anya Polytech & Fertilizers Limited, which opened for subscription, and Newmalayalam Steel Limited, Carraro India Limited, Senores Pharmaceuticals Limited, and Ventive Hospitality Limited, whose basis of allotment was finalized.
These IPO activities reflect a healthy appetite for new listings, with investors closely monitoring their potential performance amid volatile market conditions.
Global Market Overview
Global markets presented a mixed picture. In the Asia-Pacific region, Japan’s Nikkei 225 gained 0.42%, while the Topix rose 0.51%, buoyed by reports of a record $735 billion budget proposal for the upcoming fiscal year. South Korea’s Kospi edged up 0.17%, while the Kosdaq declined slightly by 0.11%. In China, the CSI 300 and Shanghai Composite dipped by 0.15% and 0.12%, respectively.
European markets, including Britain’s FTSE 100 and France’s CAC 40, saw minor gains, rising 0.19% and 0.14%, respectively. In the United States, Wall Street closed higher on Tuesday, with the Dow Jones Industrial Average climbing 0.91%, the S&P 500 advancing 1.1%, and the Nasdaq Composite rising 1.35%. These movements capped a global rally ahead of the Christmas holiday.
Commodities and Currencies
Spot gold edged higher by 0.13%, trading at $2,616.26 an ounce, marking a 27% gain for the year, the largest since 2010. Crude oil prices also strengthened, with US crude rising 1.56% to $70.32 per barrel and Brent crude climbing 1.51% to $73.73 per barrel.
In the currency markets, the dollar index advanced 0.14%, nearing a two-year high, supported by firmer Treasury yields and speculation about the Federal Reserve’s slower rate cuts in 2025. The two-year US Treasury yield stood at 4.359%, while the benchmark 10-year yield rose to 4.625%, reflecting investor caution amid shifting monetary policies.
Domestic Market Sentiment
Indian equity investors navigated a volatile environment as 2024 neared its end. Despite a nearly 9% correction in the benchmark Sensex from its 52-week high in September, brokerages see opportunities in reduced valuations, identifying potential entry points for 2025. Small-cap and mid-cap stocks offered some resilience, with selective gains observed in these segments.
Investors also kept an eye on large-cap funds, which have outperformed for the second consecutive year due to strong allocations in mid-cap and small-cap segments. This trend underscores the importance of diversification and strategic asset allocation in achieving superior returns.
Outlook for the Coming Year
As markets prepare to close the year, analysts expect 2025 to bring a mix of challenges and opportunities. The Federal Reserve’s signals of cautious monetary easing, coupled with geopolitical developments and domestic reforms, are likely to influence market dynamics. Sectors such as banking, financial services, and auto are expected to remain in focus, given their recent performance and growth potential.
In the primary market, the robust pipeline of IPOs suggests sustained interest in new listings, providing investors with opportunities to explore diverse sectors. As India’s equity investor base approaches 110 million, increased participation is likely to support market depth and liquidity in the coming year.
The Indian stock market displayed resilience on December 26, 2024, with key indices showing modest gains amid subdued global cues. Strong performances in banking and financial services sectors, coupled with steady interest in primary markets, provided a positive backdrop. As global and domestic factors continue to shape market trends, investors remain cautiously optimistic about the opportunities that lie ahead.
