HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Benchmarks trade flat with negative bias in morning deals
Dec-20-2024

Indian equity benchmarks erased most of their losses to trade flat with negative bias in morning deals, as foreign investors continued their selling spree amid the US Federal Reserve’s hawkish stance on interest rate cuts for 2025. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,224.92 crore, according to exchange data. However, traders took some support as the Central government has released Rs 47,225 crore to the states and union territories under the Smart Cities Mission till November 15 and out of which Rs 44,626 crore has been utilised. Union Minister of State for Housing and Urban Affairs Tokhan Sahu said the work orders have been issued till November 15 in 8,066 crore amounting to Rs 1,64,669 crore, of which 7,352 projects (i.e. 91 per cent of total projects) amounting to Rs 1,47,366 crore have been completed under the mission. On the global front, Asian markets are trading mixed amid concerns that U.S. President-elect Donald Trump's fiscal, trade and tariff policies could prompt the Federal Reserve to end its rate-cutting cycle. 

The BSE Sensex is currently trading at 79143.16, down by 74.89 points or 0.09% after trading in a range of 78673.68 and 79587.15. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.34%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.54%, Energy up by 0.42%, Metal up by 0.41%, Utilities up by 0.20% and Telecom up by 0.20%, while Realty down by 0.58%, Bankex down by 0.58%, Capital Goods down by 0.34%, Industrials down by 0.34% and FMCG down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.10%, NTPC up by 0.87%, Asian Paints up by 0.60%, Power Grid Corporation up by 0.56% and Maruti Suzuki up by 0.55%. On the flip side, Axis Bank down by 2.17%, Tech Mahindra down by 1.72%, Ultratech Cement down by 1.67%, Mahindra & Mahindra down by 0.96% and Indusind Bank down by 0.86% were the top losers.

Meanwhile, CareEdge Ratings in its latest report has said that India’s solar equipment manufacturing capacity is poised for healthy growth over the next 2-3 years, entailing a capex of nearly Rs 1 lakh crore. It stated of that Capex, an estimated debt funding of nearly Rs 70,000 crore is expected over the medium term, including investments in polysilicon and wafer capacities.

India’s renewable energy capacity stood at 155 Gigawatt as of September 2024, with the solar segment being the largest contributor at 91 GW, thanks to significant capacity additions over the past 7-8 years. The rising share of renewable energy capacity is due to strong policy focus, improving tariff competitiveness, and strong investor interest.

While India installed 18.5 GW of renewable energy capacity in 2023-24, it expects the annual installations to surpass 35 GW over the next two years, primarily supported by a healthy pipeline of more than 100 GW. The growth in solar capacity in the medium term will be driven by an annual tendering target of 50 GW renewable energy capacity through renewable energy implementing agencies, with the majority expected from solar. Significant capacity additions of 20 GW will come from rooftop solar, hybrid solar components, and off-grid solar over the next 2-3 years.

The government is proactive in its policy - it supports the industry through tariff and non-tariff barriers to drive demand for Indian players. To safeguard domestic cells and modules against the predatory pricing of Chinese counterparts, the government imposed a Basic Customs Duty (BCD) of 25 per cent and 40 per cent on Chinese cells and modules respectively, effective from April 01, 2022. The duty remains a key tool in enhancing the cost-competitiveness of domestic modules.

The CNX Nifty is currently trading at 23944.60, down by 7.10 points or 0.03% after trading in a range of 23807.30 and 24065.80. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.92%, Hindalco up by 1.35%, Titan Company up by 1.18%, NTPC up by 0.99% and Apollo Hospital up by 0.75%. On the flip side, Axis Bank down by 2.25%, Tech Mahindra down by 1.68%, Ultratech Cement down by 1.50%, Mahindra & Mahindra down by 0.91% and Indusind Bank down by 0.87% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 22.72 points or 0.06% to 38,836.30, Hang Seng advanced 21.71 points or 0.11% to 19,774.22, Jakarta Composite gained 17.92 points or 0.26% to 6,995.16 and Shanghai Composite strengthened 18.19 points or 0.54% to 3,388.22.

On the flip side, Taiwan Weighted lost 304.6 points or 1.33% to 22,627.65, KOSPI dropped 37.81 points or 1.55% to 2,398.12 and Straits Times fell 33.01 points or 0.88% to 3,729.87. 
  RELATED NEWS >>
Most Viewed >>
December 13 , 2024
Mutual funds see Rs 8,995 crore inflow in mid
December 14 , 2024
Investors return to IPOs with Rs 2.2 trillion
December 14 , 2024
Nifty 2025 target at 26,300, Bharti Airtel and
December 09 , 2024
3 mutual fund NFOs will open for subscription
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.