HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Domestic indices remain in red in late morning deals
Jan-08-2025

Domestic equity indices remained in red in late morning deals on account of selling by fund and retail investors. Meanwhile, broader indices were also trading in red with BSE Mid cap index and Small cap index falling in the range of 0.90-1.15%. Weak cues from the global markets weighed on the domestic sentiments. Rising crude oil prices also weighed on the sentiments. Traders were cautious as the First Advance Estimates released by the National Statistics Office (NSO) estimated that Indian economy to slow to a four-year low of 6.4 per cent in FY25, falling short of the Reserve Bank of India’s (RBI’s) projection of 6.6 per cent. On the global front, Asian markets were trading mostly in red following weak cues from the US markets. Back home, in stock specific development, Ola Electric fell after the Company has received an administrative warning via email on January 7, 2025, issued by SEBI through its letter dated January 7, 2025.   

The BSE Sensex is currently trading at 77810.18, down by 388.93 points or 0.50% after trading in a range of 77610.21 and 78319.45. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.16%, while Small cap index down by 0.90%.

The only gaining sectoral indices on the BSE were Oil & Gas up by 1.00% and Energy up by 0.98%, while Consumer Durables down by 2.76%, Industrials down by 1.13%, Power down by 1.10%, Capital Goods down by 1.07% and Consumer Disc down by 1.07% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.77%, Maruti Suzuki up by 0.72%, Mahindra & Mahindra up by 0.40%, TCS up by 0.39% and Axis Bank up by 0.21%. On the flip side, Adani Ports down by 2.22%, Zomato down by 2.22%, Titan down by 2.09%, SBI down by 1.67% and ICICI Bank down by 1.59% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that the revenues of the Indian hospitality industry are likely to grow by 7-9% YoY in FY25 and 6-8% YoY in FY26, over the high base of FY24. Further, ICRA estimates pan-India premium hotel occupancy to improve to around 72-74% in FY26 from around 70-72% in FY25. The average room rates (ARRs) for premium hotels are projected to rise to Rs 7,800-8,000 for full-year FY2025 (up 8% YoY) and subsequently improve further to Rs 8,000-8,400 in FY26. ICRA’s sample set, comprising 13 large hotel companies, is expected to report strong operating margins of 31-33% for FY25, against 33% for FY24 and 20-22% pre-Covid. 

According to the report, sustained domestic leisure travel, demand from meetings, incentives, conferences and exhibitions (MICE), including weddings, and business travel (despite a temporary lull during the General Elections) have driven demand in YTD FY25. ICRA anticipates this trend to continue over the next 9-12 months. Spiritual tourism and tier-II cities are expected to contribute meaningfully in FY26 as well. Domestic tourism has been the prime demand driver in YTD FY25 and is likely to remain so in the near term. Foreign tourist arrivals (FTA) are yet to recover to pre-Covid levels and the improvement would depend on the global macroeconomic environment.

The report further said the demand outlook over the medium term remains healthy, supported by a confluence of factors, including improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE events, with the opening of multiple new convention centres in the last few years, among others. It said healthy demand amid relatively lower supply would lead to higher ARRs. Several hotels have also been undergoing renovation, refurbishment and upgradation in the last few quarters, and these are likely to support the ARRs further, going forward. Larger players would also benefit from revenues/share of profits generated from hotel expansions through management contracts and operating leases. 

The CNX Nifty is currently trading at 23,592.85, down by 115.0 points or 0.49% after trading in a range of 23,751.85 and 23,535.35. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 1.78%, ONGC up by 1.67%, Dr. Reddy's Laboratories up by 1.56%, Maruti Suzuki India up by 0.67% and Bharat Petroleum Corporation up by 0.65%, while Shriram Finance down by 3.28%, Trent down by 2.94%, Titan down by 2.29%, Adani Ports down by 2.19% and State Bank of India down by 1.76%. 

Asian markets were trading mostly in red; Hang Seng declined 261.79 points or 1.36% to 19,185.79, Jakarta Composite plunged 3.13 points or 0.04% to 7,080.15, Shanghai Composite weakened 42.56 points or 1.34% to 3,187.08, Nikkei 225 slipped 91.12 points or 0.23% to 39,992.18 and Taiwan Weighted lost 210.41 points or 0.9% to 23,440.86. However, Straits Times rose 31.12 points or 0.81% to 3,859.29 and KOSPI increased 29.48 points or 1.17% to 2,521.58.
  RELATED NEWS >>
Most Viewed >>
December 28 , 2024
Nifty forms Doji candle but crosses 200-DMA
January 01 , 2025
Rupee closes at new all-time low
December 31 , 2024
At Rs 1,20,598 crore, FPI selling makes 2024 s
January 03 , 2025
Local indices hit Bull's Aye! 2% bounce best i
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.