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Sustain buying takes Indian markets near day’s highs
Jan-02-2025

A sustained buying helped Indian equity benchmarks to reach intraday high points in early afternoon deals, with both Sensex and Nifty gaining traction, despite negative cues from other Asian markets. Sentiments were upbeat, as the Prime Minister Narendra Modi reiterated that the Government is fully committed to furthering welfare of farmers. The street paid no heed towards reports that India's manufacturing sector activity expanded at a slower pace in the month of December, hitting a 12-month low and indicating a weaker improvement in operating conditions. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 56.4 in December as against 56.5 in November.

On the global front, Asian markets were trading mostly in red, as China's manufacturing sector expanded at a softer pace in December largely due to weaker foreign demand. The survey results from S&P Global showed that the Caixin manufacturing Purchasing Managers' Index posted 50.5 in December, down from 51.5 in November. The score was expected to climb to 51.6. The survey showed that conditions in the manufacturing sector improved for a third straight month but the pace of growth eased since November.

The BSE Sensex is currently trading at 79517.93, up by 1010.52 points or 1.29% after trading in a range of 78542.37 and 79542.69. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.27%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were Auto up by 2.84%, IT up by 1.89%, TECK up by 1.81%, Consumer discretionary up by 1.32% and Basic Materials up by 0.79%, while Power down by 0.16% and Realty down by 0.14% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 6.55%, Bajaj Finance up by 4.66%, Maruti Suzuki up by 4.62%, Mahindra & Mahindra up by 4.35% and Infosys up by 3.67%. On the flip side, Sun Pharma down by 0.62% and Adani Ports & SEZ down by 0.26% were the only losers.

Meanwhile, the Union Cabinet has extended a one-time package to subsidise key fertiliser DAP at the cost of up to Rs 3,850 crore and approved a one-year extension of two crop insurance schemes. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, extended two crop insurance schemes – Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS)-- for one more year till 2025-26 and created a separate Rs 824.77 crore fund for technology infusion in the implementation of flagship schemes. PMFBY and RWBCIS have been extended to align it with the 15th Finance Commission period. The total outlay for PMFBY and RWBCI has been enhanced to Rs 69,515.71 crore for 2021-22 to 2025-26, higher from Rs 66,550 crore for 2020-21 to 2024-25.

In another big decision, the Union Cabinet extended an additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024, to help maintain retail prices of this key fertiliser at Rs 1,350 per bag of 50 kg. Last year, the Centre announced a one-time special package on DAP at Rs 3,500 per tonne, valid from April 1, 2024, to December 31, 2024, with a financial implication of Rs 2,625 crore to keep prices under check. The package was over and above the nutrient-based subsidy (NBS) fixed by the government on non-urea nutrients.

The Cabinet also approved the proposal for an extension of a one-time special package on DAP at the rate of Rs 3,500 per tonne for the period from January 1, 2025, till further orders. The special package on DAP will be provided over and above the approved NBS (nutrient-based subsidy) to ensure the smooth availability of DAP fertiliser to the farmers at an affordable price. The Centre provides 28 grades of P&K (phosphatic and potassic) nutrients to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by the NBS Scheme, with effect from April 1, 2010.

The CNX Nifty is currently trading at 24052.10, up by 309.20 points or 1.30% after trading in a range of 23751.55 and 24063.40. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 6.98%, Bajaj Finserv up by 6.89%, Maruti Suzuki up by 4.95%, Bajaj Finance up by 4.69% and Mahindra & Mahindra up by 4.28%. On the flip side, Britannia down by 0.97%, Sun Pharma down by 0.63%, Bharat Electronics down by 0.26%, Adani Ports & SEZ down by 0.23% and BPCL down by 0.19% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 437.55 points or 2.18% to 19,622.40, KOSPI dropped 0.55 points or 0.02% to 2,398.94, Taiwan Weighted lost 203.04 points or 0.89% to 22,832.06 and Shanghai Composite weakened 89.36 points or 2.67% to 3,262.40, while Jakarta Composite gained 46.89 points or 0.66% to 7,126.80 and Straits Times rose 4.65 points or 0.12% to 3,792.25. 
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