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Sensex, Nifty hover near neutral lines
Dec-26-2024

Indian equity benchmarks were hovering near their neutral lines during early afternoon deals, with both Sensex and Nifty trading marginally higher, on the back of buying at Auto and Power counters. Traders got relief, as the Ministry of Statistics and Programme Implementation (MoSPI) in its latest release of the results of Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 for the reference period October, 2023 - September, 2024, has showed that there was significant growth in establishments, employment, and productivity in the unincorporated non-agricultural sector, demonstrating the sector's recovery from pandemic-related challenges and its resurgence with renewed momentum. Besides, Reserve Bank of India (RBI) bulletin has stated that the Indian economy is recovering from the slowdown in momentum witnessed in the September quarter (Q2FY25), driven by strong festival activity and a sustained upswing in rural demand.

On the global front, Asian markets are trading mixed, after Japan's construction orders tumbled in November after rebounding sharply in the previous month. The data from the Ministry of Land, Infrastructure, Transport, and Tourism showed that construction orders received by the big 50 contractors in Japan fell 10.2 percent annually in November, reversing a 44.6 percent surge in the prior month. The decline in November was largely driven by a 41.1 percent plunge in foreign orders. Data showed that total domestic orders also declined notably by 8.6 percent.

The BSE Sensex is currently trading at 78477.89, up by 5.02 points or 0.01% after trading in a range of 78325.37 and 78898.37. 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 by 0.56%, while Small cap index was down by 0.40%.

The top gaining sectoral indices on the BSE were Auto up by 0.74%, Power up by 0.22%, Utilities up by 0.16%, PSU up by 0.10% and Telecom up by 0.03%, while Realty down by 0.67%, Basic Materials down by 0.55%, Metal down by 0.46%, Industrials down by 0.34% and Capital Goods down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.82%, Adani Ports & SEZ up by 1.77%, Mahindra & Mahindra up by 1.52%, Tata Motors up by 0.97% and Bharti Airtel up by 0.84%. On the flip side, Zomato down by 1.00%, Asian Paints down by 0.69%, Titan down by 0.51%, NTPC down by 0.48% and HDFC Bank down by 0.46% were the top losers.

Meanwhile, Reserve Bank of India (RBI) bulletin has stated that the Indian economy is recovering from the slowdown in momentum witnessed in the September quarter (Q2FY25), driven by strong festival activity and a sustained upswing in rural demand. An article on the 'State of the Economy' in the December bulletin noted that the global economy continues to exhibit resilience with steady growth and moderating inflation. High frequency indicators (HFIs) for the third quarter of 2024-25 indicate that the Indian economy is recovering from the slowdown in momentum witnessed in Q2, driven by strong festival activity and a sustained upswing in rural demand. 

The article authored by a team led by RBI Deputy Governor Michael Debabrata Patra further said the growth trajectory is poised to lift in the second half of 2024-25, driven mainly by resilient domestic private consumption demand. Supported by record level foodgrains production, rural demand, in particular, is gaining momentum. Sustained government spending on infrastructure is expected to further stimulate economic activity and investment. Global headwinds, however, pose risks to the evolving outlook for growth and inflation. India's GDP growth slowed to a seven-quarter low of 5.4 per cent during the July-September period of the current fiscal year. 

The article said that from the expenditure side, the major factor contributing to the decline in the growth rate of the economy is fixed capital formation and from the production side, the main concern is manufacturing. Undermining both is inflation. The erosion of purchasing power due to repeated inflation shocks and persisting price pressures is starkly reflected in weakening sales growth of listed non-financial nongovernment corporations. Their outlook on demand conditions also remains subdued as no let-up in the incidence of price shocks seems to be in sight; they will increasingly be inclined to pass on input costs to selling prices. Consequently, there is no robust capacity creation by investing in fixed assets. Instead, corporations are churning and utilising existing capacity to meet the inflation-dented consumer demand.

The CNX Nifty is currently trading at 23747.10, up by 19.45 points or 0.08% after trading in a range of 23701.05 and 23854.50. There were 31 stocks advancing against 18 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Maruti Suzuki up by 1.84%, Adani Ports & SEZ up by 1.84%, Mahindra & Mahindra up by 1.59%, SBI Life Insurance up by 1.14% and Shriram Finance up by 1.03%. On the flip side, Asian Paints down by 0.72%, Grasim Industries down by 0.63%, JSW Steel down by 0.51%, HDFC Bank down by 0.47% and Tata Consumer Products down by 0.47% were the top losers.

Asian markets are trading mixed; Shanghai Composite strengthened 4.73 points or 0.14% to 3,398.08, Nikkei 225 surged 437.63 points or 1.11% to 39,568.06 and Taiwan Weighted added 26.81 points or 0.12% to 23,246.94, while Straits Times fell 6.5 points or 0.17% to 3,763.05 and KOSPI dropped 10.85 points or 0.45% to 2,429.67.
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