HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges end lower on Monday
Dec-30-2024

Indian equity benchmarks ended over half percent lower on Monday amid persistent foreign fund outflows and weak global cues. Foreign institutional investors (FIIs) offloaded Rs 1,323.29 crore in the capital markets on net basis on December 27, according to exchange data. Markets made a negative start as traders were concerned with data released by the Reserve Bank of India (RBI) showing that India’s foreign exchange reserves fell by $8.4 billion to $644 billion in the week ended December 20. However, markets erased opening losses and traded marginally higher in late morning deals, as traders took support with report that following the lackluster growth numbers in the second quarter (Q2FY25), the street believe the upcoming Union Budget for 2025-26 should focus on reforms that will stimulate consumption, manufacturing and spur employment. Some support also came as the 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. Traders took a note of private report 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, boosted by domestic consumption. 

But buying proved short-lived as key gauges once again fell into red terrain in late afternoon deals as some pessimism remained among traders with 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. Investors were looking forward to the Government Budget Value and Infrastructure Output data which going to be out on December 31. Meanwhile, Commerce ministry in its notifications has said that India has initiated investigations into alleged dumping of two Chinese products -- a chemical used in rubber industry and nylon filament yarn. The ministry's investigation arm, Directorate General of Trade Remedies (DGTR), is probing the dumping of nylon filament yarn from China and Vietnam; and TDQ (trimethyl dihydroquinoline). While Century Enka, Gujarat Polyfilms, and Oriilon India have filed an application for the initiation of anti-dumping investigation on the yarn; NOCIL has submitted a similar plea for TDQ. 

On the global front, European markets were trading mostly in red after all three major U.S. averages sold off Friday, thwarting the seasonal Santa Claus rally on concerns about rising bond yields. Asian markets ended mixed on Monday 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, on the sectoral front, there was some reaction in paint industry stocks as CareEdge Ratings in its study said the Indian paint industry, after witnessing robust growth in FY'22 and FY'23, is bracing for a challenging landscape marked by intensifying competition and margin pressures. Power stocks were in limelight with report that India will set up more coal-fired and hydro-power plants and ramp up transmission infrastructure to achieve round-the-clock Power for All' in 2025, besides meeting rising demand fuelled by economic expansion.

Finally, the BSE Sensex fell 450.94 points or 0.57% to 78,248.13, and the CNX Nifty was down by 168.50 points or 0.71% to 23,644.90.            

The BSE Sensex touched high and low of 79,092.70 and 78,077.13 respectively. There were 7 stocks advancing against 23 stocks declining on the index.  

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

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 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%, Industrials down by 1.32% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 4.33%, Tech Mahindra up by 2.04%, HCL Technologies up by 1.97%, Sun Pharma up by 1.10% and Indusind Bank up by 1.09%. On the flip side, Tata Motors down by 2.24%, Titan Co down by 1.62%, Mahindra & Mahindra down by 1.55%, Tata Steel down by 1.48% and SBI down by 1.41% were the top losers.

Meanwhile, India will set up more coal-fired and hydro-power plants and ramp up transmission infrastructure to achieve round-the-clock ‘Power for All' in 2025, besides meeting rising demand fueled by economic expansion. To meet the growing energy demand, the government has devised a major plan for power generation capacity addition and the expansion of transmission infrastructure. 

According to Minister of State for Power Shripad Yesso Naik, India can definitely achieve ‘24x7’ power for all with all the efforts in the ministry under the leadership of Prime Minister Narendra Modi. He said ‘we can do it. In 2025, we will be almost there to have 24X7 power for all in the country.’ He also said that the government is ready to support the expansion plan of the power sector in view of rising demand.

According to government estimates, peak power demand is expected to touch 270 GW in the summer season in 2025, up from the record high of 250 GW in May 2024 and 243 GW in September 2023. The peak power demand is estimated to reach a level of 446 GW by 2035. The Ministry of Power along with states, has planned about 80 by giga watt 2031-32. Besides about 14 GW of hydro projects and 6,050 MW Pumped Storage Projects are under construction. About 24.22 GW of hydroelectric projects and 50.76GW MW of PSP are under various stages of planning and are targeted to be completed by 2031-32.

About 7,300 MW of Nuclear Capacity is under construction and 7,000 MW is under various stages of planning and approval. Besides, the government will also add about 300 GW of renewable energy capacity to have 500 GW of non-fossil fuel-based power generation by 2030. To evacuate electricity from the additional power generation capacity, the government has planned an investment of Rs 9.16 lakh crore to ramp up transmission infrastructure by 2032 to meet the rising demand for electricity.

The CNX Nifty traded in a range of 23,915.35 and 23,599.30. There were 11 stocks advancing against 38 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 7.26%, Tech Mahindra up by 1.03%, HCL Technologies up by 0.99%, Indusind Bank up by 0.80% and Shriram Finance up by 0.79%. On the flip side, Hindalco down by 2.32%, Tata Motors down by 2.03%, Trent down by 2.01%, Bharat Electronics down by 2.00% and Wipro down by 1.65% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 17.62 points or 0.22% to 8,132.16 and Germany’s DAX lost 34.59 points or 0.17% to 19,949.73, while France’s CAC rose 6.38 points or 0.09% to 7,361.75.

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
  RELATED NEWS >>
Most Viewed >>
December 20 , 2024
Sebi board meeting: 2 announcements for mutual
December 20 , 2024
GST Council may provide exporter status to int
December 24 , 2024
Sectoral, thematic mutual funds fetch highest
December 24 , 2024
BSE, NSE to conduct live trading on Saturday,
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.