Stay updated with sectoral performance, global cues, and IPO activities shaping today’s trading session
The Indian stock market started the week on a positive note, with benchmark indices showing steady gains amid favorable global cues and renewed investor confidence. On Tuesday, the BSE Sensex and Nifty 50 opened higher, continuing the momentum from the previous session, where both indices had snapped a five-day losing streak. This upward trend reflects improved market sentiment driven by reduced selling pressure from foreign institutional investors (FIIs) and a “Santa Claus rally” boosting global equity markets.
Benchmark Indices
At the time of writing, the BSE Sensex was up 223.37 points, or 0.28%, trading at 78,763.54, while the Nifty 50 climbed 69.45 points, or 0.29%, to reach 23,822.90. Gains in blue-chip stocks contributed to the upward movement, particularly in sectors such as IT, auto, and FMCG.
Stocks like TCS (up 0.68%), Tata Motors, Bharti Airtel, Nestle India, and Infosys led the rally on the Sensex. On the other hand, Zomato (down 1.53%), IndusInd Bank, NTPC, and UltraTech Cement were among the top drags.
On the Nifty 50, TCS again led gains with a rise of 0.72%, followed by Tata Motors, Britannia Industries, Hero MotoCorp, and Nestle India. Declines were limited to stocks like JSW Steel (down 0.62%), IndusInd Bank, Cipla, and Tata Steel.
Sectoral Trends
Sectorally, indices such as IT, Auto, and FMCG posted gains of 0.33%, 0.29%, and 0.28%, respectively. These sectors benefited from strong performances by their heavyweight constituents. In contrast, sectors like Metal, Consumer Durables, and Banking saw some pressure, reflecting mixed investor sentiment.
Broader markets underperformed the benchmarks, with the Nifty Midcap 100 slipping by 0.16% and the Nifty Smallcap 100 declining by 0.14%. This disparity indicates selective buying in large-cap stocks while mid- and small-cap stocks faced profit-booking.
Global Market Cues
Global markets provided a firm backdrop for Indian equities. The so-called Santa Claus rally, typically observed during the holiday season, drove Wall Street indices higher in the previous session. Investors were encouraged by reduced selling pressure from foreign institutional investors (FIIs) and optimism over potential policy developments in the U.S.
In the Asia-Pacific region, markets showed mixed trends. Japan’s Nikkei 225 slipped 0.33%, reflecting cautious investor sentiment, while China’s CSI 300 gained 0.47%, driven by domestic optimism. Hong Kong’s Hang Seng added 0.31%, and Australia’s S&P/ASX 200 rose 0.35% during its shortened trading session.
Institutional Activity
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) showed contrasting activity in recent sessions. On Monday, FIIs were net sellers, offloading Indian equities worth ₹168.71 crore, while DIIs purchased shares worth ₹2,227.68 crore, providing support to the markets. This marks a significant recovery after a five-day losing streak, signaling renewed confidence among domestic investors.
IPO Activity
The primary market continues to see heightened activity, with several IPOs attracting substantial interest. Shares of NACDAC Infrastructure IPO from the SME segment were listed today, while Unimech Aerospace and Manufacturing Limited IPO entered its second day of subscription.
Five mainline IPOs, including Concord Enviro Systems Limited IPO and Sanathan Textiles Limited IPO, had their basis of allotment finalized. Additionally, the subscription windows for three IPOs, including Carraro India Limited IPO and Ventive Hospitality Limited IPO, are set to close today.
The IPO frenzy of 2024 has contributed significantly to India’s market capitalization. New listings have added nearly 3% (₹14 trillion) to the market cap, surpassing last year’s contribution of 1.4% (₹5 trillion). This underscores the robust appetite for new equity offerings and the growing vibrancy of the Indian equity market.
Noteworthy Developments
Zomato’s Sensex Inclusion:
Zomato made history on Monday by becoming the first new-age company to be included in the 30-share benchmark Sensex, replacing JSW Steel. With a weightage of 2.77%, Zomato now ranks 12th among the Sensex components, ahead of established players like Hindustan Unilever and Maruti Suzuki.
SEBI’s Action Against Bharat Global Developers:
The Securities and Exchange Board of India (SEBI) suspended trading in Bharat Global Developers, citing lapses in financial disclosures and fraudulent preferential allotments. The company’s valuation of over ₹12,000 crore has come under scrutiny.
Global Market Highlights
On Wall Street, major indices rose in the previous session, driven by gains in mega-cap technology stocks such as Nvidia and Broadcom. The Dow Jones Industrial Average rose 66.69 points to 42,906.95, the S&P 500 gained 43.22 points to 5,974.07, and the Nasdaq Composite climbed 192.29 points to 19,764.89.
In the bond market, U.S. Treasury yields reached a seven-month high, reflecting strong demand for short- and intermediate-term debt. The yield on the 10-year Treasury note rose to 4.591%, while the 30-year bond yield climbed to 4.7791%.
Commodities and Currency Market
Oil:
Oil prices saw marginal declines due to concerns about a potential supply surplus in 2025. U.S. crude settled at $69.24 per barrel, down 0.32%, while Brent crude fell 0.43% to $72.63 per barrel.
Gold:
Gold prices edged lower, pressured by a strong dollar and rising Treasury yields. Spot gold traded at $2,610.66 per ounce, down 0.39%, while U.S. gold futures dropped to $2,611.10 per ounce.
Currency:
The U.S. dollar index, measuring the greenback against a basket of currencies, rose 0.27% to 108.08, signaling strength in the U.S. currency.
The Indian stock market’s performance today reflects a combination of positive global cues, improved domestic sentiment, and sectoral resilience in IT, auto, and FMCG. As the holiday season approaches, the momentum is expected to continue, with institutional activity and global developments playing pivotal roles.
Investors remain optimistic about the prospects of a sustained recovery, supported by new equity offerings, regulatory clarity, and robust domestic participation. The markets will remain closed on December 25 in observance of Christmas, resuming trading on December 26.
