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EQUITY
Post Session: Quick Review
Jan-02-2025

Indian equity benchmarks gave optimistic performance on second day of new year as investors continued to hunt for fundamentally strong stocks.  Nifty and Sensex settled above the psychological 24,150 and 79,900 levels respectively amid optimism about upcoming Union Budget 2025. There are expectations that the budget will be growth-oriented. Sector wise, IT sector stocks witnessed healthy buying ahead of Q3 earnings. Besides, Bajaj twins remained in limelight during the day.

Markets made positive start and extended their gains despite mostly negative cues from Asian counterparts as most major global markets returned from the New Year's Day break. Traders took support as provisional data released by the government showed that the net goods and services tax (GST) collection grew marginally by 3.3 per cent Y-o-Y to Rs 1.54 trillion in December, amid an increase in refunds. Traders took note of Agriculture Minister Shivraj Singh Chouhan’s statement that the country's agriculture and allied sector is expected to grow at 3.5-4 per cent in 2024-25, marking a significant improvement from the 1.4 per cent rise recorded in FY24. In afternoon session, indices remained higher even after survey showed India’s manufacturing activity grew in December at its weakest pace for the year amid softer demand and despite easing cost pressures and strong jobs growth, dulling the outlook for the start of 2025. The HSBC final India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, fell to 56.4 - the weakest since December 2023 - little changed from November’s 56.5 but below an early estimate that showed a rise to 57.4. In late afternoon session, markets reached at their day’s high levels amid value buying by investors. Finally, markets ended the session near day’s high levels.

On the global front, European markets were trading mostly in red as traders returned to their desks after the New Year holidays. Asian markets ended mostly in red as investor sentiment stayed cautious ahead of Donald Trump's return to the White House. Back home, government data has showed that India's power consumption rose nearly 6 per cent to 130.40 billion units (BU) in December 2024 as compared to the year-ago month. In December 2023, power consumption was 123.17 BU.

The BSE Sensex ended at 79,943.71, up by 1436.30 points or 1.83% after trading in a range of 78,542.37 and 80,032.87. There were 29 stocks advancing against 1 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.89%, while Small cap index was up by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 3.66%, IT up by 2.31%, Consumer Disc up by 2.24%, TECK up by 2.19% and Consumer Durables was up by 2.02%, while there was no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 7.86%, Bajaj Finance up by 6.50%, Maruti Suzuki up by 5.43%, Titan Company up by 4.22% and Mahindra & Mahindra up by 3.99%. On the flip side, Sun Pharma down by 0.62% was the only losers. (Provisional)

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 ended at 24,188.65, up by 445.75 points or 1.88% after trading in a range of 23,751.55 and 24,226.70. There were 48 stocks advancing against 2 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 8.65%, Bajaj Finserv up by 7.88%, Bajaj Finance up by 6.54%, Maruti Suzuki up by 5.65% and Shriram Finance up by 4.84%. On the flip side, Sun Pharma down by 0.63% and Britannia down by 0.14% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 68.23 points or 0.92% to 7,312.51 and Germany’s DAX was down by 13.24 points or 0.07% to 19,895.90. On the flip side, UK’s FTSE 100 was up by 0.21 points or 0% to 8,173.23.

Asian markets settled mostly down on Thursday on uncertainty around the outlook for US-China relations in the New Year, while traders cautiously awaiting more clues on the Federal Reserve's rate trajectory and US President-elect Donald Trump's fiscal and tariff policies. Chinese and Hong Kong shares fell sharply after data showed that the Caixin/S&P Global manufacturing PMI for China nudged down to 50.5 in December from 51.5 the previous month, undershooting forecasts. Although, Chinese President Xi Jinping said in his New Year's address that the country would implement more proactive economic policies in 2025 to hit the growth target of around 5%. Seoul shares ended marginally lower amid the ongoing political turbulence surrounding the impeachment trial and investigation against President Yoon Suk Yeol, while central bank governor Rhee Chang-yong said in a New Year's address that the pace of monetary policy easing would need to be flexible this year due to heightened political and economic uncertainty. Market sentiments weakened further after data showed South Korea's factory activity contracted in December. Japanese markets were remained closed for market holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,262.56

-89.20

-2.73

Hang Seng

19,623.32

-436.63

-2.23

Jakarta Composite

7,163.20

83.29

1.18

KLSE Composite

1,632.87

-9.46

-0.58

Nikkei 225

--

--

--

Straits Times

3,800.81

13.21

0.35

KOSPI Composite

2,398.94

-0.55

-0.02

Taiwan Weighted

22,832.06

-203.04

-0.89
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