HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Benchmarks continue to trade higher in morning deals
Jan-14-2025

Indian equity benchmarks continued to trade higher in morning deals, fueled by gains in Utilities, Power and Metal stocks. Investors reacted positively to data showing that India’s retail inflation, based on the Consumer Price Index (CPI), for December stood at 5.22 per cent, slightly lower than 5.48 per cent in November, data released by the Ministry of Statistics & Programme Implementation showed on Monday. In October, CPI inflation had reached a 14-month high of 6.21 per cent and it stood at 5.69 per cent in December 2023. Some support also came as Fitch Ratings in its January update of the 'India Corporates Credit Trends' report stated that India's steady GDP growth outlook, improved banking sector's financial health and expected interest-rate cuts in 2025 will support credit access for corporates in FY26. On the global front, Asian markets are trading mostly in green as bargain buying after recent losses played against ongoing worries about the outlook for the global economy and the impact of a second Donald Trump presidency.  

The BSE Sensex is currently trading at 76630.06, up by 300.05 points or 0.39% after trading in a range of 76335.75 and 76779.49. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.07%, while Small cap index was up by 0.61%.

The top gaining sectoral indices on the BSE were Utilities up by 3.57%, Power up by 2.94%, Metal up by 2.08%, PSU up by 1.90% and Telecom up by 1.64%, while IT down by 1.07%, FMCG down by 0.68% and TECK down by 0.61% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.57%, Indusind Bank up by 3.34%, Zomato up by 3.19%, Adani Ports &SEZ up by 2.77% and Tata Motors up by 2.60%. On the flip side, HCL Technologies down by 8.96%, Hindustan Unilever down by 1.39%, Nestle down by 1.22%, Tech Mahindra down by 1.04% and Titan Company down by 0.50% were the top losers.

Meanwhile, Fitch Ratings in its January update of the 'India Corporates Credit Trends' report has said that India's steady GDP growth outlook, improved banking sector's financial health and expected interest-rate cuts in 2025 will support credit access for corporates in FY26. The credit metrics of rated Indian corporates is expected to improve in FY26 (April 2025-March 2026) driven by wider EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins, despite high capex intensity. However, it stated downside risks could materialise if energy prices rise significantly given ongoing geopolitical risks, a sustained downward pressure on the Indian rupee or adverse trade protectionist measures dampening exports.

Further, it said there is a widespread expectation that the Reserve Bank of India would cut interest rates in 2025 after it eased liquidity by lowering the cash reserve ratio (CRR) by 50 basis points in its policy review meeting last month. Fitch expects aggregate sales growth for Fitch-rated corporates to remain limited to 1-2 per cent in FY26 (FY25 forecast: 1.5 per cent), mainly reflecting the impact of lower prices on oil and gas upstream, and refining and marketing companies, while other sectors will see varying growth.

It stated ‘We expect India's GDP growth of 6.5 per cent and robust infrastructure spending to underpin healthy demand for cement, electricity, petroleum products, steel, and engineering and construction (E&C) companies during FY26.’ Moreover, it said sales will decline in low-single digits for the oil and gas production and oil marketing companies (OMCs) as lower prices counterbalance a low-to-mid single-digit volume growth. Fitch expects only mid-single-digit sales growth for IT service companies, as customers in key overseas markets limit discretionary spending in light of slow economic growth prospects.

It also said Auto suppliers' sales growth will moderate to mid-single digits amid slower volume growth in the domestic market and lower exports. Demand recovery in the travel and tourism industry will continue, albeit at a moderate pace. Global oversupply will continue to weigh on prices for chemical companies. It added revenue growth for telecom companies will be supported by tariff increases while that for the pharmaceutical sector will remain aided by its non-discretionary nature and favourable sector trends.

The CNX Nifty is currently trading at 23156.45, up by 70.50 points or 0.31% after trading in a range of 23134.15 and 23227.20. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 5.13%, NTPC up by 3.64%, Indusind Bank up by 3.35%, Adani Ports &SEZ up by 2.85% and Tata Motors up by 2.60%. On the flip side, HCL Technologies down by 9.10%, Apollo Hospital down by 1.68%, Hindustan Unilever down by 1.31%, Tech Mahindra down by 1.24% and Nestle down by 1.23% were the top losers.

Asian markets are trading mostly in green; Shanghai Composite strengthened 55.24 points or 1.72% to 3,216.00, Taiwan Weighted added 260.18 points or 1.16% to 22,748.51, Hang Seng advanced 266.99 points or 1.39% to 19,141.13 and KOSPI increased 10.54 points or 0.42% to 2,500.10. 

On the flip side, Nikkei 225 slipped 829.79 points or 2.12% to 38,360.61, Straits Times fell 5.23 points or 0.14% to 3,786.47 and Jakarta Composite plunged 42.18 points or 0.6% to 6,974.70.
  RELATED NEWS >>
Most Viewed >>
January 27 , 2025
Bears continue to rule the roost
January 31 , 2025
Highest NAV fund turns Rs 1,000 SIP investors
January 24 , 2025
Corporate law firms, institutional brokers hud
January 24 , 2025
Small IT flaunts strong numbers, spark for eve
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.