Grasim Industries and Coal India Gain Over 2% on Positive Market Sentiment
Stock Market Update December 11, 2024 – Benchmark equity indices in India, BSE Sensex and Nifty 50, opened on a positive note today, showing mild gains despite weak global cues. At 11 AM, the BSE Sensex was trading 125.75 points higher at 81,635.80, marking a 0.15% rise. Similarly, the Nifty 50 index gained 44.70 points to reach 24,654.75, registering a 0.18% increase. The cautious sentiment prevailing in global markets has not deterred Indian indices from advancing moderately.
Among the 30 constituent stocks of the BSE Sensex, more than half were trading in the green. UltraTech Cement led the gains with a 2.04% rise, followed by Nestle India, Adani Ports & SEZ, Maruti Suzuki India, and Infosys. On the losing end, HCLTech was down by 0.57%, alongside declines in ICICI Bank, JSW Steel, Mahindra & Mahindra, and HDFC Bank. In the Nifty 50 index, 29 out of 50 stocks were trading higher. UltraTech Cement topped the chart with a 2.54% increase, followed by Grasim Industries, Coal India, Tata Consumer Products, and Hero MotoCorp. Losses were capped by Dr. Reddy’s, which fell by 1.03%, followed by HCLTech, Hindustan Unilever, Wipro, and ICICI Bank.
Sectoral performance was mixed, with Nifty Bank and Financial Services indices being the top laggards, falling 0.28% and 0.27%, respectively. The Nifty IT index was marginally down by 0.08%. On the positive side, the Media index led the gains, climbing 0.61%, followed by indices tracking OMCs, Auto, and Realty sectors. In the broader market, the Nifty Smallcap index touched a new all-time high of 19,683.2, gaining 0.51% before settling 0.42% higher. The Nifty Midcap 100 also advanced, trading 0.16% higher during the morning session.
The global economic backdrop remains uncertain, with markets treading cautiously ahead of critical US inflation data. This data is expected to provide insights into the Federal Reserve’s monetary policy direction in its upcoming meeting next week. Indian markets, like their global counterparts, have been largely flat or declining in recent sessions as investors await clarity on inflation and interest rate trends.
Indian equities have been projected to deliver modest returns in 2025. Concerns over earnings growth and elevated valuations have contributed to this cautious outlook, even as India’s fundamental growth narrative remains strong. Equity mutual fund inflows in November also moderated, recording Rs. 35,943 crore, a 14% decline from October’s all-time high inflows of Rs. 41,887 crore. Despite these short-term challenges, global agencies, such as S&P Global Ratings, remain optimistic about India’s long-term growth prospects, citing strong urban consumption, a steady services sector, and robust infrastructure investment as key drivers for 2025.
Primary market activity has gained momentum, with multiple IPOs opening for subscription today. These include One Mobikwik Systems, Vishal Mega Mart, Sai Life Sciences, Purple United Sales Limited, and Supreme Facility Management. The increased IPO activity reflects a healthy interest in new market entrants despite the overall cautious sentiment in secondary markets.
In regulatory developments, the Securities and Exchange Board of India (Sebi) announced that the top 500 stocks would transition to a same-day settlement cycle (T+0) in phases. This change, set to take effect on January 31, 2025, is expected to enhance market efficiency and liquidity.
In the previous trading session, the BSE Sensex ended marginally higher by 1.59 points at 81,510.05, while the Nifty 50 closed 8.95 points lower at 24,610.05. Most sectoral indices ended in the green, with the Nifty Realty index outperforming others, gaining 1.43%, driven by stocks such as Raymond and Phoenix Mills. Broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, ended the session with gains of 0.23% and 0.28%, respectively.
On the global front, Asian markets were mixed. Hong Kong’s Hang Seng index rose by 0.57%, while China’s CSI 300 and Shanghai Composite gained 0.18% and 0.13%, respectively. South Korea’s Kospi surged by 0.78%, with the Kosdaq small-cap index climbing 2%. In contrast, Japan’s Nikkei 225 slipped by 0.25%, and Australia’s S&P/ASX 200 fell by 0.49%. Global equities experienced a decline on Tuesday, with the dollar gaining strength and gold prices reaching a two-week high amid geopolitical tensions and expectations of a US Federal Reserve rate cut next week.
The US markets showed a mixed performance in the previous session. The Dow Jones Industrial Average fell by 154.10 points to 44,247.83, the S&P 500 declined by 17.94 points to 6,034.91, and the Nasdaq Composite dropped by 49.45 points to 19,687.24. In Europe, the STOXX 600 index fell by 0.5%, ending an eight-session winning streak, with luxury stocks leading the declines after weak trade data from China.
Investors worldwide are closely monitoring upcoming US inflation data and the European Central Bank’s policy meeting. Economists expect a 25-basis-point rate cut by the Federal Reserve at its December 18 meeting. An ECB rate cut also seems imminent, and investors are awaiting further clues on its policy direction.
Gold prices surged, with spot gold trading at $2,692.43 per ounce, gaining 1.27%, while US gold futures settled 1.2% higher at $2,718.40. Oil prices extended their gains, supported by supply concerns in Europe and economic stimulus measures in China. Brent crude futures were up 0.07% at $72.19 a barrel, while US West Texas Intermediate rose by 0.32% to $68.59 a barrel.
The dollar index, which measures the greenback against major currencies, rose by 0.25% to 106.42. Benchmark US 10-year Treasury yields increased to 4.23%, reflecting growing investor confidence in the Federal Reserve’s policy measures.
In conclusion, Indian equity markets have shown resilience despite weak global cues and cautious investor sentiment. Gains in heavyweight stocks such as UltraTech Cement and Nestle India have provided support, while sectoral indices have shown mixed performance. The broader market remains buoyant, with small-cap and mid-cap indices hitting new highs. Global economic events, including inflation data and central bank meetings, continue to influence market direction. As the day progresses, investor focus remains on key economic indicators and corporate developments, shaping the outlook for Indian and global markets.
