HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
Jan-08-2025

Indian equity markets wiped out most of their early losses to end flat on Wednesday led by recovery in IT sectors stocks ahead of TCS Q3 earnings. During the day, markets traded with deep cuts tracing First Advance Estimates of Annual Gross Domestic Product (GDP) data for the Financial Year (FY) 2024-25. As for broader indices, the BSE Mid cap index and Small cap index ended with cut of over a percent. 

Markets made slightly positive start and soon slipped into red amid sustained foreign fund outflows dented domestic sentiments. FIIs offloading shares worth Rs 1,491.46 crore on January 7. Some concerned came 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. In FY24, gross domestic product (GDP) had grown at 8.2 per cent. Separately, driven by a slowdown in government capital expenditure and sluggish private investments, growth in infrastructure investment is expected to moderate in the current financial year (FY25) compared to FY24. In afternoon session, indices extended their losses as sentiments were downbeat after State Bank of India (SBI) has revised its forecast for India's GDP growth in FY25 to 6.3 per cent, slightly lower than the National Statistical Office's (NSO) estimate of 6.4 per cent. SBI noted a ‘downward bias’ in its projection, citing several challenges affecting economic growth. According to the SBI report, the slowdown in manufacturing and credit growth, coupled with the impact of a high base effect, has dampened expectations for FY25. However, in late afternoon session, markets recovered sharply but failed to enter into green zone. Traders took note of report that India Ratings and Research (Ind-Ra) in its latest report has said that Indian banks’ profitability is expected to moderate further in FY26 with an expectation of rising slippages and higher credit costs over the FY24 levels which was at decadal lows. It said a bulk of the asset quality stress will emanate from the unsecured retail exposure.

On the global front, European markets were trading mostly in green despite worries about inflation and the outlook for interest rates. Asian markets ended mostly lower on Wednesday , as Japan's consumer sentiment decreased unexpectedly at the end of the year. The survey data from the Cabinet Office showed that the seasonally adjusted consumer confidence index weakened to 36.2 in December from 36.4 in November. The latest survey was conducted on December 15 among 8,400 households. Back home, Federation of Automobile Dealers Association (FADA) has said that retail automobile sales in India grew 9.1 per cent in 2024 to 2.61 crore units, defying multiple headwinds like extreme weather, elections, and uneven monsoons.

The BSE Sensex ended at 78,148.49, down by 50.62 points or 0.06% after trading in a range of 77,486.79 and 78,319.45. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 1.09%, while Small cap index was down by 1.12%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.58%, Energy up by 1.33%, TECK up by 0.38%, Realty up by 0.38% and FMCG was up by 0.33%, while Consumer Durables down by 1.86%, Industrials down by 1.44%, Capital Goods down by 1.34%, Power down by 1.17% and Utilities was down by 0.95% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 1.97%, Reliance Industries up by 1.92%, ITC up by 1.90%, Asian Paints up by 1.80% and HCL Tech up by 0.83%. On the flip side, Adani Ports down by 1.89%, Ultratech Cement down by 1.75%, Larsen & Toubro down by 1.22%, Sun Pharma down by 1.19% and HDFC Bank down by 1.16% were the top losers. (Provisional)

Meanwhile, National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its the First Advance Estimates of Annual Gross Domestic Product (GDP) for the Financial Year (FY) 2024-25 has showed that India's economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, mainly on account of poor showing by the manufacturing and services sector. The gross domestic product (GDP) rate of 6.4 per cent will be the lowest since the Covid year (2020-21) when the country witnessed a negative growth of 5.8 per cent. It was 9.7 per cent in 2021-22; 7 per cent in 2022-23 and 8.2 per cent in the last fiscal ended in March 2024.

The estimate is lower than the 6.6 per cent projected by the Reserve Bank in December 2024. It is also a tad lower than the finance ministry's initial projection of 6.5-7 per cent. The advance estimates will be used in preparation for the Union Budget to be presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on February 1. The economic growth slowed to a seven-quarter low of 5.4 per cent during the July-September period. It was 6.7 per cent in the first quarter (April-June).

NSO said the manufacturing sector output is expected to decelerate to 5.3 per cent from a high of 9.9 per cent recorded in the previous fiscal. The services sector, comprising trade, hotels, transport and communications, is estimated to expand at 5.8 per cent against 6.4 per cent in 2023-24. On the other hand, the farm sector is estimated to record a growth of 3.8 per cent in the current fiscal, up from 1.4 per cent in 2023-24.

According to the data, nominal GDP (GDP at current prices) is estimated to attain a level of Rs 324.11 lakh crore in 2024-25 compared to Rs 295.36 lakh crore in 2023-24, showing a growth rate of 9.7 per cent. Further, the nominal Gross Value Added (GVA) is estimated to attain a level of Rs 292.64 lakh crore in 2024-25 against Rs 267.62 lakh crore in 2023-24, showing a growth rate of 9.3 per cent. 

Private Final Consumption Expenditure (PFCE) at constant prices has witnessed a growth rate of 7.3 per cent during 2024-25 over the growth rate of 4 per cent in the previous financial year. Government Final Consumption Expenditure (GFCE) at Constant Prices has rebounded to a growth rate of 4.1 per cent compared to the growth rate of 2.5 per cent in the previous fiscal. NSO also said the per capita income (at current prices) is estimated to increase by 8.7 per cent to Rs 2,00,162 per annum. It was Rs 1,84,205 in the preceding fiscal.

The CNX Nifty ended at 23,688.95 down by 18.95 points or 0.08% after trading in a range of 23,496.15 and 23,751.85. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were up by ONGC up by 3.04%, ITC up by 1.94%, Asian Paint up by 1.91%, Dr. Reddy's up by 1.74%, TCS up by 1.66, while Apollo Hospitals down by 4.06%, Trent down by 2.75%, UltraTech Cement down by 2.14%, Shriram Finance down by 1.98% and Bajaj Auto down by 1.89% were the top losers on Nifty. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 6.08 points or 0.07% to 8,251.36 and Germany’s DAX gained 54.78 points or 0.27% to 20,395.35. On the flip side, France’s CAC was down by 7.07 points or 0.09% to 7,482.28.

Asian markets ended mostly lower on Wednesday tracking Wall Streets’ falls overnight and as upbeat US economic data led investors to scale back Fed interest rate cut bets. Investors are awaiting the release of minutes of the US Federal Reserve's December policy meeting and ADP employment data. Japanese shares declined, while Japanese yen sagged close to levels that drew intervention last year undermined by the Bank of Japan interest rate hike uncertainty. Hong Kong shares declined as the yuan fell to its lowest level since September 2023 despite renewed efforts by the country's central bank to support the currency. However, Chinese shares gained as regulators announced plans to broaden the scope of home appliance trade-ins that qualify for subsidies.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,230.17

0.53

0.02

Hang Seng

19,279.84

-167.74

-0.87

Jakarta Composite

7,080.35

-2.93

-0.04

KLSE Composite

1,614.83

-14.96

-0.92

Nikkei 225

39,981.06

-102.24

-0.26

Straits Times

3,886.98

58.81

1.51

KOSPI Composite

2,521.05

28.95

1.15

Taiwan Weighted

23,407.33

-243.94

-1.04
  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.