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EQUITY
Post Session: Quick Review
Jan-03-2025

Indian equity benchmarks witnessed heavy selling pressure on last trading day of week with Nifty and Sensex settling below the psychological 24,050 and 79,300 levels respectively amid profit booking. Traders preferred to sell their riskier stocks ahead of Q3FY25 earning season. Sector wise, IT and banking sectors stocks ended with cut of over one percent. As for broader indices, the BSE Mid cap index and Small cap index concluded in red.

Markets made slightly positive start and soon entered into red tracking overnight losses on Wall Street. Traders were cautious with credit rating agency ICRA’s report stating that banks credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high credit-to-deposit (CD) ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. Some concern also came with Chairman of the CII National Committee on EXIM, Sanjay Budhia’s statement that Indian exporters are grappling with significant liquidity challenges due to high interest rates and a decline in export finance, which are undermining their competitiveness.  In afternoon session, markets continued to trade lower. Sentiments remained downbeat, amid reports that more than half of the respondents surveyed in the Reserve Bank of India’s (RBI) Systemic Risk Survey (SRS) do not expect a revival in the private capital expenditure cycle in the coming year, contrary to the central bank’s own assessment that economic activity is likely to pick up in the second half of this year. In late afternoon session, markets touched their day’s low levels and ended deep in red.

On the global front, European markets were trading lower after major U.S. benchmark indexes extended a selloff for a fifth day overnight amid choppy trading. Asian markets ended mostly higher on Friday amid expectations that China will follow through on its pledges to stimulate growth in the new year. Back home, Maharashtra has attracted Rs 1.13 lakh crore in foreign direct investment (FDI) in the first six months of FY 2024-25. This figure is nearly equivalent to the total FDI the state has received annually over the last four years.

The BSE Sensex ended at 79,223.11, down by 720.60 points or 0.90% after trading in a range of 79,109.73 and 80,072.99. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional) 

The broader indices ended in red; the BSE Mid cap index declined 0.33%, while Small cap index was down by 0.02%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.49%, Energy up by 1.10%, Consumer Durables up by 0.45%, PSU up by 0.44% and Metal was up by 0.23%, while IT down by 1.31%, TECK down by 1.13%, Bankex down by 1.07%, Capital Goods down by 1.06% and Industrials was down by 0.70% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 3.33%, Titan Company up by 1.70%, Nestle up by 1.51%, Hindustan Unilever up by 1.49% and Reliance Industries up by 0.78%. On the flip side, Zomato down by 4.27%, HDFC Bank down by 2.46%, Tech Mahindra down by 2.23%, Adani Ports down by 2.15% and TCS down by 2.03% were the top losers. (Provisional)

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the implementation process of free trade agreement (FTA) between India and the four-nation European bloc EFTA is progressing fast and is expected to come into force before the end of this year (2025). The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

The minister said the Swiss Council of States has approved the agreement and now will go to their National Council for approval. He said ‘“So this overwhelming support in political circles in Switzerland for the TEPA with EFTA is truly a sign of the times to come and in their statement also, it shows that that it has cleared an important hurdle and they are hoping to bring in entry to force by autumn of 2025, before the end of calendar year 2025’.

The bloc committed an investment of $100 billion - $50 billion within 10 years after the implementation of the agreement and another $50 billion in the next five years - which would facilitate the creation of 1 million direct jobs in India. This is a first-of-its-kind pledge agreed upon in any of the trade deals signed by India so far. The commitment is the key substance of the TEPA (Trade and Economic Partnership Agreement), which took almost 16 years to conclude, for India in return for opening its markets for several products coming from the EFTA nations. There is a provision in the agreement that if the proposed investments would not come because of some reasons, India can suspend duty concessions to the four countries.

Domestic customers will get access to high-quality Swiss products such as watches, chocolates, biscuits, and clocks at lower prices as India will phase out customs duties under the trade pact on these goods over 10 years. It is taking time to implement the agreement due to an elaborate ratification process of these pacts in different countries. In India, such agreements are approved by the union Cabinet, in EFTA countries, they need approval from their parliament.

The CNX Nifty is currently trading at 24004.75, down by 183.90 points or 0.76% after trading in a range of 23976.00 and 24196.45. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 5.21%, Tata Motors up by 3.31%, Titan Company up by 1.85%, SBI Life up by 1.79% and Hindustan Unilever up by 1.53%. On the flip side, Wipro down by 3.08%, HDFC Bank down by 2.48%, Tech Mahindra down by 2.17%, Adani Ports down by 2.16% and ICICI Bank down by 1.98% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 2.96 points or 0.04% to 8,257.13, France’s CAC fell 51.57 points or 0.7% to 7,342.19 and Germany’s DAX was down by 62.18 points or 0.31% to 19,962.48.

Asian markets ended mostly higher on Friday amid expectations that China will follow through on its pledges to stimulate growth in 2025. China's central bank PBoC said it is likely to cut interest rates from the current level of 1.5% at an appropriate time in 2025. Although, some gains were limited by concerns that US President-elect Donald Trump's policies on tariffs may fuel inflation. Seoul shares rose, led by gains in chips, batteries and bios as investors went for bargains amid protracted political turmoil following the short-lived martial law imposition by President Yoon Suk Yeol. Japanese market was closed for a holiday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,211.43

-51.13

-1.59

Hang Seng

19,760.27

136.95

0.69

Jakarta Composite

7,164.43

1.22

0.02

KLSE Composite

1,629.46

-3.41

-0.21

Nikkei 225

--

--

--

Straits Times

3,801.83

1.02

0.03

KOSPI Composite

2,441.92

42.98

1.76

Taiwan Weighted

22,908.30

76.24

0.33


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