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Sensex, Nifty trade deeply in red; CPI data eyed
Jan-13-2025

Indian equity benchmarks made gap-down opening on Monday amid global sell-off and higher Treasury yields. Sensex and Nifty are trading deeply in red with cut of around 0.80% in early deals amid continued selling by foreign institutional investors. FIIs sold shares worth Rs 2,254.69 crore on January 10. Traders are concerned as Rupee hit a record low, crossing 86 against the US dollar on Monday, following stronger-than-expected US jobs data. Some cautiousness came as IMF Managing Director Kristalina Georgieva has said the Indian economy is expected to be a little weaker in 2025 despite steady global growth. Traders overlooked data released by the National Statistics Office (NSO) showing growth in India’s Index of Industrial Production (IIP) surged to a six-month high of 5.2 per cent in November 2024 from 3.7 per cent in the previous month, aided by a low base. Now, investors are eyeing December CPI inflation (Consumer Price Index) figures to be released later in the day.

On the global front, Asian markets are trading lower, following the broadly negative cues from Wall Street on Friday, as stronger than expected US employment data weighed heavily on the outlook for interest rates. It raised concerns that the US Fed will likely hold interest rates at current levels or slow down the pace of reductions. The Japanese stock market is closed for The Aged Day on Monday.

Back home, insurance industry stocks are in limelight as the new business premium (NBP) of life insurance companies dropped 21.7 per cent year-on-year (Y-o-Y) to Rs 30,218.71 crore in December 2024 on the back of a steep fall in business. In stock specific development, Biocon traded higher as USFDA classifies its Malaysia site as Voluntary Action Indicated.

The BSE Sensex is currently trading at 76718.03, down by 660.88 points or 0.85% after trading in a range of 76535.24 and 76846.99. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.50%, while Small cap index was down by 1.57%.

The top losing sectoral indices on the BSE were Realty down by 3.07%, Consumer Disc down by 1.66%, Consumer Durables down by 1.57%, Basic Materials down by 1.56% and Industrials down by 1.54%, while there was no gainer on the BSE sectoral front. 

The top gainers on the Sensex were Indusind Bank up by 2.92%, Axis Bank up by 0.55%, TCS up by 0.50%, Hindustan Unilever up by 0.33% and HCL Technologies up by 0.01%. On the flip side, Zomato down by 2.76%, HDFC Bank down by 1.81%, Adani Ports & SEZ down by 1.81%, Tata Steel down by 1.69% and Kotak Mahindra Bank down by 1.59% were the top losers.

Meanwhile, expressing cautiousness over India’s economy, the International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said the Indian economy is expected to be ‘a little weaker’ in 2025 despite steady global growth. Georgieva also said she expects quite a lot of uncertainty in the world this year mainly around the trade policy of the US. She said global growth is expected to be steady in 2025, but with regional divergence. She said ‘the US is doing quite a bit better than we expected before, the EU is somewhat stalling, (and) India a little weaker’. Brazil was facing somewhat higher inflation. In China, the world's second-largest economy, IMF was seeing deflationary pressure and ongoing challenges with domestic demand.

She said ‘Low-income countries, despite all the efforts they are making, are in a position when any new shock can affect them quite negatively’. She added ‘What we expect in 2025 is to have quite a lot of uncertainty, especially in terms of economic policies. Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency’.

She further said this uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region. That uncertainty is actually expressed globally through higher long-term interest rates, even though short-term interest rates have gone down.

The CNX Nifty is currently trading at 23246.05, down by 185.45 points or 0.79% after trading in a range of 23172.70 and 23270.90. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.17%, Britannia Industries up by 0.76%, Axis Bank up by 0.74%, TCS up by 0.59% and Hindustan Unilever up by 0.33%. On the flip side, Apollo Hospital down by 2.66%, Adani Enterprises down by 2.03%, Grasim Industries down by 1.89%, Adani Ports &Special down by 1.81% and HDFC Bank down by 1.66% were the top losers.

Asian markets are trading lower; Taiwan Weighted lost 460.76 points or 2% to 22,551.10, Hang Seng declined 257.26 points or 1.35% to 18,807.03, Jakarta Composite weakened 28.82 points or 0.41% to 7,060.05, KOSPI dropped 27.04 points or 1.07% to 2,488.74, Straits Times fell 22.39 points or 0.59% to 3,779.17 and Shanghai Composite was down by 14.15 points or 0.45% to 3,154.37.
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