HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key indices end higher on first trading session of 2025
Jan-01-2025

Snapping two-day falling streak, Indian equity benchmarks ended around half a percent higher on first trading session of 2025, driven by robust performances in Auto, Capital Goods and Industrials sectors. After making a cautious start, key gauges traded lower amid foreign fund outflows. Data from the National Securities Depository showed that India experienced a drastic drop in Foreign Portfolio Investment (FPI) inflows in 2024, with net investments falling by 99 per cent compared to the previous year. The data highlighted that the net FPI inflows came down from Rs 1.71 lakh crore in 2023 to just Rs 2,026 crore in 2024. Some cautiousness came as the government data showed that the output of eight key infrastructure sectors slowed down to 4.3 per cent in November 2024 against 7.9 per cent growth registered in the same month last year. On a monthly basis, the production growth of these sectors last month rose to a four-month high.

However, markets erased initial losses and entered into green terrain in late morning deals, as traders took support with a report by economic think tank Global Trade Research Initiative (GTRI) stating that India's overall exports of goods and services in 2024 has estimated to cross $814 billion, an increase of 5.58 per cent. In 2023, the country's merchandise and services exports stood at $768.5 billion. Sentiments remained upbeat in late afternoon deals as the Reserve Bank of India (RBI) in its latest report ‘Sectoral Deployment of Bank Credit - November 2024’ has showed that credit to agriculture and allied activities registered a growth of 15.3 per cent (y-o-y) as on the fortnight ended November 29, 2024 (18.1 per cent for the corresponding fortnight of the previous year). Adding to the optimism, Prime Minister, Narendra Modi highlighted that India is emerging as a global economic leader with resilience and innovation. 

On the global front, Asian markets and European markets remained shut for the New Year holiday. Back home, the data released by the Controller General of Accounts showed that the government's capital expenditure in the April-November period of financial year 2024-25 (FY25) continued to contract with a 12.3 per cent decline year-on-year (Y-o-Y).

Finally, the BSE Sensex rose 368.40 points or 0.47% to 78,507.41, and the CNX Nifty was up by 98.10 points or 0.41% to 23,742.90.            

The BSE Sensex touched high and low of 78,756.49 and 77,898.30 respectively. There were 22 stocks advancing against 8 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were Auto up by 1.23%, Capital Goods up by 1.22%, Industrials up by 1.17%, Power up by 0.94% and Telecom up by 0.76%, while Realty down by 1.13% and Metal down by 0.11% were the only losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.26%, Mahindra & Mahindra up by 2.45%, Bajaj Finance up by 1.69%, Larsen & Toubro up by 1.64% and Tata Motors up by 1.15%. On the flip side, Tata Steel down by 0.98%, Adani Ports &SEZ down by 0.80%, Zomato down by 0.54%, HCL Technologies down by 0.27% and SBI down by 0.21% were the top losers.

Meanwhile, CRISIL in its latest report has said that India's current account deficit (CAD) is to remain in a safe zone at approximately 1 per cent of GDP for fiscal 2025, up from 0.7 per cent in the previous year. While geopolitical risks will require close monitoring, the strong financial inflows and a steady services trade surplus are expected to provide stability.

India's current account deficit (CAD) remained largely stable at $11.2 billion, or 1.2 per cent of GDP, in the second quarter (Q2) of fiscal 2025, compared with $11.3 billion (1.3 per cent of GDP) in the same period last year. However, sequentially, the CAD widened slightly from $10.2 billion (1.1 per cent of GDP) in the first quarter, as reported by the Reserve Bank of India. Despite pressures from a rising merchandise trade deficit, strong services exports and healthy remittances helped keep the CAD manageable.

The overall trade deficit rose to 3.4 per cent of GDP in Q2 FY25 from 2.9 per cent in the year-ago period, with the merchandise trade deficit increasing to 8.2 per cent of GDP from 7.5 per cent. Meanwhile, the services trade surplus rose to 4.9 per cent from 4.7 per cent. Additionally, the primary income account deficit reduced to 1 per cent of GDP from 1.4 per cent, while the secondary income account surplus grew to 3.2 per cent from 2.9 per cent.

The CNX Nifty traded in a range of 23,822.80 and 23,562.80. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.01%, Mahindra & Mahindra up by 2.36%, Larsen & Toubro up by 1.73%, Bajaj Finance up by 1.71% and Tata Motors up by 1.31%. On the flip side, Hindalco down by 1.40%, Dr. Reddy's Lab down by 1.12%, Adani Ports &SEZ down by 1.04%, ONGC down by 0.98% and Tata Steel down by 0.85% were the top losers.
  RELATED NEWS >>
Most Viewed >>
December 24 , 2024
BSE, NSE to conduct live trading on Saturday,
December 24 , 2024
Retail inflation for farm, rural workers eases
December 24 , 2024
Sectoral, thematic mutual funds fetch highest
December 28 , 2024
Nifty forms Doji candle but crosses 200-DMA
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.