Sensex and Nifty Open Higher; Tata Motors and Shriram Finance Lead Gains
The Indian stock market opened on a slightly positive note on Tuesday, December 10, 2024, with the benchmark indices showing marginal gains. Here’s a detailed overview of the market’s performance and key developments shaping today’s trading session.
Benchmark Indices Performance
As of 11:00 AM IST:
- BSE Sensex: Trading at 81,596.25, up by 87.79 points or 0.11%.
- Nifty 50: Trading at 24,639.25, higher by 20.25 points or 0.08%.
Out of the 30 Sensex constituents, Tata Motors led the gains, rising by 0.84%, followed by Infosys, HCLTech, Bajaj Finance, and JSW Steel. On the other hand, Mahindra & Mahindra saw the sharpest decline, losing 1.08%, with Tech Mahindra, Axis Bank, and Maruti Suzuki India also trading lower.
In the Nifty 50 index, 33 stocks traded in the green. Gains were spearheaded by Shriram Finance (up 2.19%), followed by Apollo Hospitals, HCLTech, Wipro, and Infosys. Losses were led by Mahindra & Mahindra (-1.19%), Bajaj Auto, and Tech Mahindra.
Sectoral Indices: Mixed Performance
Sectoral indices displayed a mixed trend:
Gainers:
- The Realty Index surged by 0.83%, buoyed by expectations of a steady demand in the housing sector.
- The IT Index showed modest gains, driven by strong performances from companies like HCLTech and Infosys.
- The Healthcare and Pharma Indices also traded higher amid optimistic market sentiment.
Losers:
- The Auto Index fell by 0.28%, weighed down by losses in Mahindra & Mahindra and Bajaj Auto.
- The Oil Marketing Companies (OMCs) Index dropped 0.14%, reflecting a mixed outlook on crude oil prices.
- The Consumer Durables Index slipped 0.09%, as investors booked profits after recent rallies.
Broader Markets
Broader indices displayed resilience:
- The Nifty Smallcap 100 rose 0.28%, showcasing interest in smaller, growth-oriented companies.
- The Nifty Midcap 100 edged up by 0.03%, highlighting stability in mid-sized businesses.
Key Drivers of the Day
US Inflation Data and Federal Reserve Speculations:
Investors are closely watching the US inflation data due to be released on Wednesday. The outcome may provide clues on whether the Federal Reserve will announce a rate cut in its next meeting. This anticipation is keeping global markets, including India, cautiously optimistic.
FIIs and DIIs Activity:
- On Monday, Foreign Institutional Investors (FIIs) net bought Indian equities worth ₹724.27 crore, signaling continued interest in domestic markets.
- Domestic Institutional Investors (DIIs), however, net sold shares worth ₹1,648.07 crore, possibly due to profit-booking in select sectors.
Chinese Trade Data:
Market participants are also keeping an eye on Chinese imports, exports, and overall trade data. These numbers could provide insights into global demand trends, influencing sectors such as metals and energy.
RBI Leadership Transition:
The appointment of Sanjay Malhotra as the new governor of the Reserve Bank of India is a significant development. He is set to take office on December 11, 2024, succeeding Shaktikanta Das. Malhotra’s policies, particularly on inflation targeting and liquidity management, are expected to have a critical impact on market sentiment.
Monday’s Market Recap
- On December 9, 2024, the benchmark indices ended on a subdued note:
- Sensex closed at 81,508.46, down by 200.66 points or 0.25%.
- Nifty 50 ended at 24,619, slipping 58.80 points or 0.24%.
Broader Indices:
Nifty Midcap 100 and Nifty Smallcap 100 managed to edge higher, gaining 0.50% and 0.19%, respectively.
Sectoral Performance:
The FMCG Index faced the steepest decline, falling 2.22%, dragged by stocks like Godrej Properties, Tata Consumer, and Marico.
- Sectors such as Media, Auto, Banking, and OMCs also faced selling pressure, declining up to 2.02%.
- In contrast, indices like Financial Services, IT, and Metals recorded marginal gains, providing some support to the markets.
Economic Developments
Foreign Direct Investment (FDI):
The first half of FY2024-25 witnessed a 45% jump in FDI equity inflows, reaching $29.8 billion, as per data from the Department for Promotion of Industry and Internal Trade (DPIIT). This reflects growing global confidence in India’s economic prospects.
Corporate Bond Fund Inflows:
Inflows into corporate bond funds have surged to multi-year highs, with September 2024 seeing an inflow of ₹5,039 crore. This trend indicates a preference for stable, high-yield investments amidst economic uncertainty.
Global Market Trends
Asian Markets:
Most Asian indices traded cautiously as investors awaited the US inflation report. The Hang Seng Index rose modestly, while the Shanghai Composite remained flat.
US and European Futures:
Futures in the US and Europe pointed to a mixed opening as investors weighed inflation concerns and geopolitical developments.
Crude Oil Prices:
Crude oil prices remained steady, with Brent crude trading around $74 per barrel. Ongoing discussions within OPEC+ regarding output cuts are influencing market sentiment.
Stock-Specific Highlights
Tata Motors:
The stock continued to rally on the back of strong demand in the electric vehicle segment and a robust performance in its Jaguar Land Rover business.
Shriram Finance:
Leading the Nifty 50 gains, Shriram Finance’s stock surged by 2.19%, supported by strong quarterly earnings and optimistic growth projections.
IT Stocks:
Companies like HCLTech, Wipro, and Infosys traded higher, reflecting renewed interest in the IT sector amidst global digital transformation trends.
Mahindra & Mahindra:
The stock declined by over 1%, weighed down by concerns over potential challenges in the automotive sector.
Outlook for the Day
The Indian stock market is likely to remain range-bound, with stock-specific action taking center stage. Key factors influencing today’s trading include:
- Anticipation of US inflation data.
- Global cues, particularly from China and the US.
- Ongoing FII and DII activity.
- Developments in the RBI’s policy direction post-leadership transition.
Investors may focus on sectors such as IT, Realty, and Healthcare, which have shown resilience, while keeping an eye on potential reversals in lagging indices like FMCG and Auto.
