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Post Session: Quick Review
Jan-13-2025

Mirroring weak global cues, Indian markets went through heavy selling pressure on first trading day of week. Since the morning, markets traded with hefty losses despite positive Index of Industrial Production (IIP). In late hour of the trade, indices touched their day’s low levels and with cut of over a percent. As for broader indices, the BSE Mid cap index and Small cap index concluded the session with the losses of over four percent each. 

Some of the important factors in today’s trade:

Rupee touches new lifetime low: Traders’ sentiments got hit after Indian rupee weakened and crashed to new life-lows of 86.43 against the US dollar tracking strengthening American currency amid sustained outflow of foreign capital and volatile global cues.

Surging bond yields: Investors were cautious as U.S. Treasury yields jumped to their highest level since November 2023. The 10-year Treasury yield added nearly six basis points at 4.745%, following the release of strong U.S. job data. 

India's industrial growth accelerates to 6-month high: Traders overlooked the report that India’s industrial production growth, measured in terms of the Index of Industrial Production, accelerated to a six-month high of 5.2% in November 2024, mainly due to good show by manufacturing sector.

Global front: European markets were trading lower amidst caution ahead of the release of CPI numbers from the U.S. on Wednesday. The unexpectedly strong jobs data released on Friday is also expected to weigh on sentiment. Asian markets ended lower after US stocks fell as good news on the job market raised inflation worries. 

The BSE Sensex ended at 76,376.96, down by 1001.95 points or 1.29% after trading in a range of 76,249.72 and 77,128.35. There were 4 stocks advancing against 26 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 4.18%, while Small cap index was down by 4.03%. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 6.41%, Utilities down by 4.39%, Power down by 4.24%, Industrials down by 4.02% and Consumer Disc was down by 4.00%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 0.92%, Hindustan Unilever up by 0.80%, TCS up by 0.69% and Indusind Bank up by 0.34%. On the flip side, Zomato down by 6.65%, Power Grid down by 4.14%, Adani Ports down by 3.95%, Tata Steel down by 3.34% and NTPC down by 3.23% were the top losers. (Provisional)

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 ended at 23,085.95, down by 345.55 points or 1.47% after trading in a range of 23,047.25 and 23,340.95. There were 4 stocks advancing against 46 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 0.83%, TCS up by 0.60%, Indusind Bank up by 0.44% and Hindustan Unilever up by 0.37%. On the flip side, Adani Enterprises down by 6.29%, Trent down by 5.46%, BPCL down by 4.45%, Bharat Electronics down by 4.21% and Adani Ports &Special down by 4.10% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 39.89 points or 0.48% to 8,208.60, France’s CAC fell 66.01 points or 0.89% to 7,365.03 and Germany’s DAX was down by 159.77 points or 0.79% to 20,055.02.

Asian markets settled down on Monday, tracking Wall Streets’ fall last Friday with concerns that the US Federal Reserve will likely hold interest rates at current levels for longer after data showed a much bigger than expected increase in US non-farm payroll employment in the month of December. China’s Shanghai Composite declined as investors were awaiting more data this week including the forth-quarter GDP. Although, China's December exports grew at a faster pace than expected as factories rushed to fill orders to beat higher tariffs threatened by US President-elect Donald Trump once he takes office. Market in Japan was closed for a holiday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,160.76

-7.76

-0.25

Hang Seng

18,874.14

-190.15

-1.01

Jakarta Composite

7,016.88

-71.99

-1.03

KLSE Composite

1,585.59

-16.82

-1.05

Nikkei 225

--

--

--

Straits Times

3,791.70

-9.86

-0.26

KOSPI Composite

2,489.56

-26.22

-1.05

Taiwan Weighted

22,488.33

-523.53

-2.33


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