Sensex Gains 337 Points, Bajaj Auto Up 2.34%, Apollo Hospitals Down 1.23%
The Indian stock market showed positive momentum on Friday, December 27, 2024, as the benchmark indices BSE Sensex and Nifty50 traded higher amid tepid global cues. Despite caution due to broader economic concerns and thin trading during the holiday season, the market exhibited strength driven by specific sectors and stocks.
Benchmark Indices Update
By midday, the BSE Sensex had climbed 337.09 points, or 0.43%, to trade at 78,809.57. The Nifty50 followed suit, gaining 108.25 points, or 0.46%, to reach 23,858.45. This uptick reflected optimism in select sectors and stocks despite the mixed global sentiment.
Key Movers on the Indices
BSE Sensex:
Among the 30 stocks on the BSE Sensex, 24 were trading higher. IndusInd Bank led the gainers with a 1.41% increase, followed by NTPC, Tata Motors, ICICI Bank, and Mahindra & Mahindra. On the downside, Adani Ports & SEZ shed 0.35%, along with losses from HCLTech, Titan, TCS, Larsen & Toubro, and Sun Pharma.
Nifty50:
On the Nifty50 index, 36 stocks traded in the green, led by Bajaj Auto, which rose 2.34%, followed by IndusInd Bank, Hero MotoCorp, NTPC, and Mahindra & Mahindra. Meanwhile, Apollo Hospitals Enterprises was the biggest laggard, down 1.23%, with HCLTech, TCS, Dr. Reddy’s, and Larsen & Toubro also showing declines.
Sectoral Performance
Sector-wise, most indices traded higher, with gains driven by the Auto index, which rose 0.89%, supported by robust demand in the automotive sector. Banking and financial stocks also performed well, with the Nifty Bank and Financial Services indices gaining 0.48% and 0.41%, respectively.
However, the Healthcare, Realty, and IT indices saw marginal cuts as investors remained cautious in these sectors. Broader indices showed moderate gains, with the Nifty Smallcap 100 rising by 0.32% and the Nifty Midcap 100 climbing 0.19%.
Global Market Sentiment
Global markets painted a mixed picture.
Asia-Pacific:
Japan’s Nikkei 225 rose 0.92%, while the Topix added 0.88%, signaling positive sentiment in the Japanese market.
South Korea’s Kospi declined 0.83%, and the Kosdaq dipped 0.31%.
Hong Kong’s Hang Seng fell 0.2%, while the CSI 300 in mainland China inched up 0.08%.
US Markets:
Wall Street closed mixed in light post-Christmas trading on Thursday. The Dow Jones Industrial Average gained 0.07% to 43,325.80, while the S&P 500 edged down 0.04% to 6,037.59, and the Nasdaq Composite slipped 0.05% to 20,020.35.
Commodities and Currencies:
Crude oil prices softened, with US crude falling 0.7% to $69.61 a barrel and Brent down 0.49% to $73.22 per barrel.
Gold gained 0.79% to $2,633.77 an ounce on safe-haven demand.
The dollar index remained flat, tracking stable bond yields.
Market Trends and Institutional Activity
Foreign institutional investors (FIIs) continued to offload Indian equities, net selling shares worth ₹2,376.67 crore on Thursday. Domestic institutional investors (DIIs), however, showed confidence, net buying equities worth ₹3,336.16 crore.
The broader market remains cautiously optimistic as investors weigh global uncertainties, including geopolitical tensions, US Federal Reserve policy signals, and the impact of high valuations in Indian equities.
India’s Market Performance in 2024
India’s market capitalization surged by 18.4% in 2024, reaching $5.18 trillion and adding $806 billion. This remarkable growth positioned India as the fifth-largest global market and ranked third among the top 15 markets in both percentage and absolute gains.
Economic and Policy Updates
The Indian finance ministry’s latest economic review highlighted a slowdown in demand during the first half of FY25 due to tight monetary policies. However, the outlook for the second half remains optimistic, with expectations of improved growth.
Speculation around February’s budget is building, with reports suggesting a potential income tax cut for individuals earning up to ₹15 lakh annually. This move aims to boost consumption and provide relief to the middle class amid a slowing economy.
IPO Market Buzz
The primary markets remained active with multiple IPOs in focus:
Mamata Machinery Limited, DAM Capital Advisors Limited, and Sanathan Textiles Limited IPOs were set to list on the mainline bourses.
Newmalayalam Steel Limited IPO will debut in the SME segment.
Citichem India Limited’s IPO opened for subscription in the SME section, while Anya Polytech & Fertilizers Limited entered its second subscription day.
Additionally, the basis of allotment for Unimech Aerospace and Manufacturing Limited IPO was being finalized.
Derivatives Market and Passive Investments
Derivatives trading volume in India dropped 37% month-on-month in December due to new measures by SEBI to curb speculative trading.
On the other hand, index funds and exchange-traded funds (ETFs) saw record growth in 2024, driven by a surge in sectoral and thematic investments. This shift toward passive investment strategies indicates changing preferences among retail and institutional investors.
Looking Ahead: Factors to Watch
As the year-end approaches, thin trading volumes during the holiday season and key macroeconomic developments are likely to influence market trends. Investors are closely monitoring:
The Federal Reserve’s monetary policy stance for 2025.
India’s RBI Monetary Policy Committee (MPC) meeting.
The economic implications of geopolitical developments, including US President-elect Donald Trump’s inauguration.
While global markets show mixed sentiment, Indian equities continue to attract interest due to strong domestic fundamentals and promising growth potential.
Friday’s positive movement in the Indian stock market highlights resilience amidst global uncertainties. With the Sensex and Nifty50 showing gains, supported by strong sectoral performance, the outlook for Indian equities remains cautiously optimistic. As the year draws to a close, investors are expected to focus on sector-specific opportunities and prepare for broader economic shifts in 2025.
The continued growth of India’s market capitalization and robust activity in the primary markets underscore the economy’s potential. However, cautious trading is likely to persist as investors navigate a complex global environment and high domestic valuations.
