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Domestic indices add more losses in late morning deals
Jan-06-2025

Domestic indices added more losses in late morning deals as market participants indulged in reducing their positions. Meanwhile, the broader markets were also facing the heat of selling; the BSE mid-cap index declined by 1.64 per cent and the small-cap index was down 2.17 per cent. Hectic selling in ITC, Tata Steel, Kotak Mahindra, Power Grid and Adani Ports dragged the Sensex and Nifty to trade below their psychological 78,600 and 23,800 levels respectively. Further, rising crude oil prices also weighed on the domestic sentiments. Meanwhile, an outbreak of Human Metapneumovirus (HMPV) in China has sparked global concern, and India has now reported its first confirmed case. Traders overlooked report that the HSBC India Services PMI, compiled by S&P Global, said India’s Services Purchasing Managers' Index (PMI) for December 2024 rose to 59.3 points, an increase from 58.4 points recorded in November, signalling growth in the country’s services sector.

On the global front, Asian markets were trading mixed as investors assessed business activity figures from several key economies in the region. China’s Caixin services purchasing managers’ index from S&P Global rose to 52.2 in December - the service sector’s fastest expansion since May 2024. China’s central bank said it would implement a moderately loose monetary policy in 2025 as it seeks to boost growth. Meanwhile, Hong Kong’s PMI declined in December compared to the month before. Back home, all the sectoral indices on the BSE were trading in red led by Utilities, PSU, Oil & Gas, Metal and Power.

The BSE Sensex is currently trading at 78526.90, down by 696.21 points or 0.88% after trading in a range of 78352.57 and 79532.67. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.64%, while Small cap index down by 2.17%.

The top losing sectoral indices on the BSE were Utilities down by 2.74%, PSU down by 2.50%, Oil & Gas down by 2.48%, Metal down by 2.46% and Power down by 2.36%, while there were no gainers. 

The few gainers on the Sensex were Titan up by 1.10%, ICICI Bank up by 0.27%, Bajaj Finance up by 0.02% and Infosys up by 0.01%. On the flip side, ITC down by 6.40%, Tata Steel down by 3.83%, Kotak Mahindra Bank down by 2.67%, Power Grid down by 2.21% and Adani Ports down by 2.16% were the top losers.

Meanwhile, SBI research on consumption expenditure survey has stated that rural poverty has declined significantly to 4.86 per cent in the fiscal ending March 2024 from 25.7 per cent in 2011-12 mainly driven by government support programmes. Urban poverty too is estimated at 4.09 per cent, down from 13.7 per cent in 2011-12. The latest Household Consumption Expenditure Survey, released by the Ministry of Statistics & Programme Implementation, showed that consumption inequality in rural as well as urban areas declined during the August 2023-July 2024 period as compared to a year ago. 

The research report said the sharp decline in rural poverty ratio is on account of higher consumption growth in lowest 0-5 per cent decile with significant government support and such support is important as we also find that change in food prices has a significant impact on not just food expenditures, but overall expenditure in general. It said enhanced physical infrastructure is scripting a new story in rural mobility and added that one of the reasons for the increasingly shrinking horizontal income gap between rural and urban and the vertical income gap within rural income classes.

It further said the difference between rural and urban monthly per capita consumption expenditure/ Monthly Per Capita Consumption Expenditure (MPCE) to rural MPCE is now at 69.7 per cent, a rapid decline from 88.2 per cent in 2009-10...mostly due to the initiatives the government has taken in terms of DBT transfers, building rural infrastructures, augmenting farmer’s income, (and) improving the rural livelihood significantly. The research estimates that food inflation dampens consumption demand more in lower-income states as compared to higher-income states, reflecting that rural people are comparatively more risk-averse in low-income states than in high-income states. Most of the high-income states delineate a savings rate greater than the national average (31 per cent).

The CNX Nifty is currently trading at 23782.35, down by 222.40 points or 0.93% after trading in a range of 23716.80 and 24089.95. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Titan up by 0.97%, Apollo Hospital up by 0.81%, ICICI Bank up by 0.39%, Bajaj Finance up by 0.33% and TCS up by 0.03%. On the flip side, ITC down by 6.48%, Tata Steel down by 4.04%, BPCL down by 3.17%, Adani Enterprises down by 2.88% and Kotak Mahindra Bank down by 2.71% were the top losers.

Asian markets were trading mixed; Hang Seng declined 92.24 points or 0.47% to 19,668.03, Jakarta Composite plunged 52.1 points or 0.73% to 7,112.33, Shanghai Composite weakened 21.09 points or 0.66% to 3,190.34 and Nikkei 225 slipped 576.45 points or 1.44% to 39,318.09. However, Straits Times rose 7.4 points or 0.19% to 3,809.23, KOSPI increased 44.53 points or 1.82% to 2,486.45 and Taiwan Weighted added 638.67 points or 2.79% to 23,546.97. 
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