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EQUITY
Post Session: Quick Review
Dec-30-2024

Indian equity markets ended near day’s low levels on Monday with Nifty and Sensex settling below the psychological 23,650 and 78,300 levels respectively. Markets traded under pressure during the day amid lack of domestic triggers, alongside global uncertainties and diminished expectations of U.S. rate cuts in 2025. As for broader indices, the BSE Mid cap index and Small cap index ended in red. Sector wise, Metal sector stocks witnessed heavy selling pressure. 

Markets made negative start and turned volatile after U.S. equities fell sharply on Friday, dragged down by technology stocks amid rising global uncertainties and caution ahead of the year-end holiday season.  Foreign fund outflows weighted on sentiments. FIIs net sold Indian equities worth Rs 1,323.29 crore on December 27. Traders were concerned as data released by the Reserve Bank of India (RBI) showed India’s foreign exchange reserves fell by $8.4 billion to $644 billion in the week ended December 20. In afternoon session, indices gained traction to trade higher for little time as traders took support with a private report indicated that Indian economy is likely to grow at 6.5-6.8 per cent this fiscal and slightly higher between 6.7-7.3 per cent in FY2026. However, markets failed to hold gains and touched day’s low level as sentiments turned pessimistic amid a private report stating that vegetables and spices saw a steep increase in spending across both rural and urban areas during August 2023 to July 2024, compared to the previous year, driven largely by inflation. Overall, food expenditure grew at a faster rate than non-food items. Traders overlooked report that Reserve Bank of India (RBI) latest data has showed that India's current account deficit (CAD) moderated marginally to $11.2 billion or 1.2 per cent of Gross Domestic Product (GDP) year-on-year in the July-September quarter (Q2) of 2024-25. The CAD, an indicator of the country's external payment scenario, was $11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24. Finally, markets ended deep in red.

On the global front, European markets were trading lower amid worries about the country's economic outlook and the prospect of a trade war after U.S. President-elect Donald Trump threatened sweeping tariffs on goods. Asian markets ended mixed as a cautious undertone prevailed, heading into year-end. Higher U.S. Treasury yields underpinned the dollar in Asian trade while oil and gold were little changed. Back home, Ministry of Commerce & Industry in its latest release has showed that India's exports to its trade agreement partner Australia rose 64.4 per cent year-on-year to $643.7 million in November amid healthy growth in sectors such as textiles, chemicals and agricultural products.

The BSE Sensex ended at 78,248.13, down by 450.94 points or 0.57% after trading in a range of 78,077.13 and 79,092.70. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index gained 0.13%, while Small cap index was down by 0.47%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 1.18%, Telecom up by 0.53%, IT up by 0.32%, FMCG up by 0.26% and TECK was up by 0.22%, while Metal down by 1.89%, Capital Goods down by 1.84%, PSU down by 1.37%, Auto down by 1.36% and Industrials was down by 1.32% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Zomato up by 4.33%, Tech Mahindra up by 2.04%, HCL Tech up by 1.97%, Indusind Bank up by 0.77% and Sun Pharma up by 0.46%. On the flip side, Tata Motors down by 2.24%, Titan Company down by 1.57%, Mahindra & Mahindra down by 1.38%, NTPC down by 1.10% and Maruti Suzuki down by 1.08% were the top losers. (Provisional)

Meanwhile, Reserve Bank of India (RBI) latest data has showed that India's current account deficit (CAD) moderated marginally to $11.2 billion or 1.2 per cent of Gross Domestic Product (GDP) year-on-year in the July-September quarter (Q2) of 2024-25. The CAD, an indicator of the country's external payment scenario, was $11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24. During April-September 2024 (H1 2024-25), the current account deficit was $21.4 billion or 1.2 per cent of GDP compared to $20.2 billion (1.2 per cent of GDP) in the year-ago period.

As per the RBI's data on Balance of Payments, merchandise trade deficit increased to $75.3 billion in the second quarter of 2024-25 from $64.5 billion in the comparable period of 2023-24. Net services receipts increased to $44.5 billion in Q2 2024-25 from $39.9 billion a year ago. Services exports have risen, on a year-on-year basis, across major categories like computer services, business services, travel services and transportation services. 

The data showed further, private transfer receipts, mainly representing remittances by Indians employed overseas, rose to $31.9 billion in the July-September quarter in 2024-25 from $28.1 billion in the second quarter of 2023-24. In the financial account, it said net foreign direct investment recorded an outflow of $2.2 billion in Q2 2024-25 compared to $0.8 billion outflow in the corresponding period of 2023-24. Net inflows under foreign portfolio investment increased to $19.9 billion in Q2 2024-25 from $4.9 billion a year ago. 

During April-September 2024, the RBI data showed that net invisibles receipts at $119.0 billion were higher in H1 2024-25 against $101 billion a year ago, primarily on account of higher net services receipts. Also, net FDI inflows at $4.4 billion in H1:2024-25 was higher than $3.9 billion in H1:2023-24. FPI recorded net inflows of $20.8 billion in H1:2024-25 compared to net inflows of $20.7 billion a year ago. In H1 2024-25, there was an accretion of $23.8 billion to the foreign exchange reserves (on a BoP basis).

The CNX Nifty ended at 23,644.90, down by 168.50 points or 0.71% after trading in a range of 23,599.30 and 23,915.35. There were 11 stocks advancing against 39 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 7.57%, HCL Tech up by 1.95%, Tech Mahindra up by 1.71%, Sun Pharma up by 1.22% and Indusind Bank up by 1.06%. On the flip side, Hindalco down by 2.64%, Bharat Electronics down by 2.45%, Trent down by 2.30%, Tata Motors down by 2.25% and ONGC down by 1.79% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 22.17 points or 0.27% to 8,127.61, France’s CAC fell 1.91 points or 0.03% to 7,353.46 and Germany’s DAX was down by 44.82 points or 0.22% to 19,939.50.

Asian markets ended mixed on Monday tracking Wall Street’s losses last Friday as a cautious undertone prevailed heading into year-end, while higher US Treasury yields and ongoing geopolitical risks around the world kept sentiments cautious. Investors are awaiting signals to Federal Reserve's interest rate outlook for 2025 and US President elect Donald Trump's tariff policies. Japanese shares declined after data showed the sixth straight month of fall in Japan's manufacturing for December, albeit at a slower pace. Seoul shares declined after the country grapples with political turmoil and downbeat industrial data. South Korea's joint investigation team said that it has sought an arrest warrant for President Yoon Suk Yeol over his short-lived imposition of martial law, making him the first sitting President to face arrest. The team said it sought the warrant on insurrection and abuse of power charges after Yoon ignored three summonses to appear for questioning. Meanwhile, Chinese shares gained ahead of manufacturing PMI data due on Tuesday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,407.33

7.19

0.21

Hang Seng

20,041.42

-49.04

-0.24

Jakarta Composite

7,079.90

43.33

0.62

KLSE Composite

1,637.68

9.54

0.59

Nikkei 225

39,894.54

-386.62

-0.97

Straits Times

3,795.73

24.10

0.63

KOSPI Composite

2,399.49

-5.28

-0.22

Taiwan Weighted

23,190.20

-85.48

-0.37
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