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Post Session: Quick Review
Dec-27-2024

Indian markets ended in green on last trading day of week amid positive Budget expectations. Since morning, indices maintained their gains. Traders were hoping that government may consider cutting personal income tax to lift consumption in the forthcoming Union Budget on February 1. As for broader indices, the BSE Mid cap index ended in red, while Small cap index ended in green.

Markets made optimistic start and remained higher tracking broadly positive cues from Asian counterparts. Traders took encouragement as expressing confidence, Finance Ministry in its monthly review has said that India's economy is set to grow at around 6.5 per cent in FY25. The Finance Minister further said that the growth outlook for October to December appears bright, with rural demand remaining resilient and urban demand picking up in the first two months of the quarter. However, in afternoon session, indices come off from day’s high points but continued to trade in green. Sentiments remained firm with the commerce ministry in its 2024 year-end review stated that the Export Credit Guarantee Corporation of India (ECGC) is aiming to reduce the export credit gap through the Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme, which is expected to benefit about 1,000 new small exporters, in addition to the existing 8,000-odd by facilitating the availability of adequate and affordable export finance from banks for working capital. Traders overlooked the Global Trade Research Initiative (GTRI) stated that the depreciation of Indian rupee against the US dollar is expected to push the country's import bill by about $15 billion. Compared to December last year, the Indian Rupee (INR) has depreciated 2.34 per cent against the US dollar, moving from Rs 83.25 to Rs 85.20. Finally, Nifty and Sensex settled above the psychological 23,800 and 78,600 levels respectively. 

On the global front, European markets were trading higher as trading resumed after a two-day break for Christmas holidays. Asian markets ended mixed with Japanese markets leading regional gains on yen weakness while Seoul stocks tumbled amid an ongoing political turmoil in the country. Back home, Reserve Bank of India (RBI) in its report on Trend and Progress of Banking in India 2023-24 has said that the profitability of banks has maintained an upward momentum on the sixth consecutive year in 2023-24. It said that the profitability has continued even in the first half (H1) of financial year 2024-25, with the return of assets (RoA) at 1.4 per cent and return on equity (RoE) at 14.6 per cent.

The BSE Sensex ended at 78,699.07, up by 226.59 points or 0.29% after trading in a range of 78,598.55 and 79,043.15. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index declined 0.08%, while Small cap index was up by 0.28%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 0.86%, Healthcare up by 0.79%, FMCG up by 0.35%, Consumer Disc up by 0.33%, IT up by 0.22% while, Metal down by 1.19%, Oil & Gas down by 0.94%, PSU down by 0.93%, Power down by 0.82%, Energy down by 0.70% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.47%, Indusind Bank up by 2.30%, Bajaj Finance up by 1.37%, Bajaj Finserv up by 1.32% and Tata Motors up by 1.32%. On the flip side, SBI down by 1.49%, Tata Steel down by 1.00%, Adani Ports down by 0.88%, Zomato down by 0.75% and Ultratech Cement down by 0.72% were the top losers. (Provisional)

Meanwhile, expressing cautiousness over India’s import bill, the Global Trade Research Initiative (GTRI) has said that the depreciation of Indian rupee against the US dollar is likely to push the country's import bill by about $15 billion. It noted compared to December last year, the Indian Rupee (INR) has depreciated 2.34 per cent against the US dollar, moving from Rs 83.25 to Rs 85.20, while the Chinese Yuan has weakened by 0.06 per cent.

It added that this depreciation of the INR will negatively impact gold imports, especially as gold prices have surged 27 per cent from $2,066.26 per ounce in December 2023 to $2,617.11 per ounce in December 2024. India's oil imports, mostly priced in USD, could have been significantly costlier due to the rupee's depreciation, however, the impact has been mitigated by a 5 per cent drop in Brent crude prices, from $77.6 per barrel in December 2023 to $73.7 per barrel in December 2024.

GTRI Founder Ajay Srivastava said ‘Overall India's import bill will increase by about $15 billion due to the INR depreciation impact’, and added that the most significant effect of the INR's depreciation will be on India's $100-billion worth of industrial goods imports from China. He said since both the INR and the yuan have weakened against the US dollar, the dual depreciation amplifies the cost of these imports, further straining trade balances.

The CNX Nifty ended at 23,813.40, up by 63.20 points or 0.27% after trading in a range of 23,800.60 and 23,938.85. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddy's Lab up by 2.53%, Mahindra & Mahindra up by 2.48%, Indusind Bank up by 2.30%, Eicher Motors up by 1.57% and Bajaj Finance up by 1.35%. On the flip side, Hindalco down by 1.81%, SBI down by 1.58%, Coal India down by 1.58%, ONGC down by 1.39% and Bharat Electronics down by 1.07% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 6.96 points or 0.09% to 8,143.95, France’s CAC rose 42.35 points or 0.58% to 7,325.04 and Germany’s DAX was up by 82.68 points or 0.41% to 19,931.45.

Asian markets ended mixed on Friday, with Japanese markets leading regional gains on yen weakness following Bank of Japan Governor Kazuo Ueda’s comments Wednesday that avoided giving a clear signal on interest rates next month. Meanwhile, Seoul shares dropped after South Korea's Acting President faced an impeachment vote amid a political crisis sparked by the Constitutional Court's first hearing on President Yoon Suk Yeol's short-lived martial law. Chinese and Hong Kong markets closed on a muted note after data showed China's industrial profits dropped in November for a fourth straight month.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,400.14

2.06

0.06

Hang Seng

20,090.46

-7.83

-0.04

Jakarta Composite

7,036.57

-29.18

-0.41

KLSE Composite

1,628.14

14.44

0.89

Nikkei 225

40,281.16

713.10

1.77

Straits Times

3,771.63

10.18

0.27

KOSPI Composite

2,404.77

-24.90

-1.04

Taiwan Weighted

23,275.68

28.74

0.12


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