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Markets end higher for second straight day
Jan-02-2025

Extending their positive streak to the second consecutive day, Indian equity benchmarks ended higher with gains of around 2 percent each amid heavy buying in Auto, IT and Consumer Discretionary shares. Markets made an optimistic start and extended gains as the day progressed as traders took support with provisional data released by the government showing 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.  Some support also came with 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. 

Markets continued their rally in late afternoon deals and ended near day’s high points, taking support from a private report stating that the agri-tech sector is expected to create 60,000-80,000 new employment opportunities over the next five years. It said agritech addresses every aspect of farming, from water irrigation advancements for seeds, fertilisers, and pesticides to offering access to advanced farm machinery and market linkages for selling produce. Traders overlooked a survey showing that 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. Separately, the Securities and Exchange Board of India (Sebi) has made integrated filing for Listing Obligations and Disclosure Requirements (LODR) effective for all disclosures starting with the quarter ending December 2024. The measures aim to ease compliance and simplify disclosure requirements by integrating periodic filings under two broad categories: governance and financial.

On the global front, Asian markets settled mostly down on Thursday, while European markets were trading mostly in red amid much uncertainty about the outlook for U.S.-China relations in the New Year. It is feared that bilateral relations may quickly plunge to a new low during Trump's second term. Besides, underwhelming Chinese factory activity data also signaled a rocky economic outlook and increased calls for further policy support. Back home, on the sectoral front, power stocks were in watch as the government data 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. There were some buzz in auto stocks with report that the domestic passenger vehicle (PV) wholesales in the Indian automobile industry rose by 11 per cent Y-o-Y in December to 320,000 units, driven by strong demand for SUVs (sports utility vehicles), a robust recovery in the urban market, year-end discounts, and solid sales of CNG-powered cars. 

Finally, the BSE Sensex rose 1436.30 points or 1.83% to 79,943.71, and the CNX Nifty was up by 445.75 points or 1.88% to 24,188.65.             

The BSE Sensex touched high and low of 80,032.87 and 78,542.37 respectively. There were 29 stocks advancing against 1 stock declining on the index.  

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

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

The top gainers on the Sensex were Bajaj Finserv up by 7.86%, Bajaj Finance up by 6.50%, Maruti Suzuki up by 5.49%, Titan Company up by 4.22% and Mahindra & Mahindra up by 4.20%. On the flip side, Sun Pharma down by 0.62% was the lone loser.

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 traded in a range of 24,226.70 and 23,751.55. There were 48 stocks advancing against 2 stocks declining on the index. 

The top gainers on Nifty were Eicher Motors up by 8.55%, Bajaj Finserv up by 7.84%, Bajaj Finance up by 6.32%, Maruti Suzuki up by 5.61% and Maruti Suzuki up by 5.61%. On the flip side, Sun Pharma down by 0.84% and Britannia Industries down by 0.20% were the only losers.

European markets were trading mostly in red; France’s CAC fell 76.41 points or 1.04% to 7,304.33 and Germany’s DAX lost 34.79 points or 0.17% to 19,874.35, while UK’s FTSE 100 increased 3.77 points or 0.05% to 8,176.79. 

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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