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Bourses reach at day’s high levels in late afternoon session
Jan-02-2025

Indian equity markets reached at their day’s high levels in late afternoon session led by gains in IT sector’s stocks. Traders overlooked the report 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 investor sentiment stayed cautious ahead of Donald Trump's return to the White House. European markets were trading mostly in red as traders returned to their desks after the New Year holidays. Back home, government data has showed that the gross Goods and Services Tax (GST) collection rose 7.3 per cent year-on-year to Rs 1.77 lakh crore in December 2024 as compared to Rs 1.65 lakh crore in the same month a year ago.

The BSE Sensex is currently trading at 79890.51, up by 1383.10 points or 1.76% after trading in a range of 78542.37 and 79890.64. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.73%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Auto up by 3.52%, IT up by 2.16%, TECK up by 2.11%, Consumer discretionary up by 1.96% and Consumer Durables was up by 1.50%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Bajaj Finserv up by 7.63%, Bajaj Finance up by 6.71%, Maruti Suzuki up by 5.50%, Mahindra & Mahindra up by 4.36% and Infosys up by 3.83%. On the flip side, Sun Pharma down by 0.79% was the only loser.

Meanwhile, 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. Although new export sales rose at a slower rate than total new business, the pace of growth for the former strengthened as firms were able to secure international orders from across the globe. 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. 

With container, material and labour costs reportedly rising since November, Indian manufacturers registered another increase in overall expenses. Having eased since the previous month, the rate of input price inflation was moderate by historical standards. Selling prices rose to a greater extent than cost burdens, and one that was stronger than seen on average in the near 20-year series history. 

The survey report further stated that ongoing improvements in new work intakes prompted manufacturing companies in India to purchase additional inputs for use in production processes. The rate of growth remained above its trend, despite being the second-slowest in 2024 (faster only than in November). With regards to input inventories, purchasing growth and shorter lead times underpinned another monthly increase. The rate of accumulation was sharp, albeit the weakest since December 2023.

Looking to 2025, Indian manufacturers were confident of a rise in output. Optimism reflected advertising, investment and expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures.

The CNX Nifty is currently trading at 24168.10, up by 425.20 points or 1.79% after trading in a range of 23751.55 and 24170.85. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 8.34%, Bajaj Finserv up by 7.60%, Bajaj Finance up by 6.79%, Maruti Suzuki up by 5.61% and Shriram Finance up by 4.57%. On the flip side, Sun Pharma down by 0.80% and Britannia down by 0.45% were the few losers.

Asian markets were trading mostly in red; Hang Seng declined 436.63 points or 2.23% to 19,623.32, Taiwan Weighted lost 203.04 points or 0.89% to 22,832.06, Shanghai Composite weakened 89.2 points or 2.73% to 3,262.56 and KOSPI was down by 0.55 points or 0.02% to 2,398.94. On the flip side, Straits Times rose 7.82 points or 0.21% to 3,795.42 and Jakarta Composite was up by 61.71 points or 0.86% to 7,141.62.

European markets were trading mostly in red; UK’s FTSE 100 decreased 3.93 points or 0.05% to 8,169.09, France’s CAC fell 33.53 points or 0.46% to 7,347.21. On the flip side, Germany’s DAX was up by 14.07 points or 0.07% to 19,923.21.
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