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Benchmarks extend gains in morning deals
Jan-15-2025

Indian equity benchmarks extended gains in morning deals, led by gains in Utilities, Power and PSU stocks. Traders took support with Union Minister of Commerce and Industry, Piyush Goyal’s statement that by 2027, India will be the world's third-largest economy, ahead of Japan and Germany. Traders overlooked ICRA’s report stated that after experiencing robust growth in FY2023 and FY2024, small finance banks (SFBs) are likely to see a moderation in growth to 18-20 per cent in FY2025, down from 24 per cent in FY2024. The growth and profitability of small finance banks (SFBs) are expected to face significant challenges in the near term, primarily due to an uptick in delinquencies and asset quality concerns. On the global front, Asian markets are trading mixed as investors await the U.S. consumer price index (CPI) report for December 2024 later in the day for clues on the path of Federal Reserve policy. Focus also remains on the U.S. earnings season, with major financial institutions like JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock scheduled to release their fourth-quarter results later in the day.

The BSE Sensex is currently trading at 76880.67, up by 381.04 points or 0.50% after trading in a range of 76555.94 and 76901.16. 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 0.36%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were Utilities up by 2.78%, Power up by 2.27%, PSU up by 1.52%, Realty up by 1.05% and Energy up by 1.01%, while Healthcare down by 0.90% and FMCG down by 0.31% were the few losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 4.02%, NTPC up by 3.20%, Zomato up by 3.08%, Maruti Suzuki up by 2.36% and Kotak Mahindra Bank up by 1.99%. On the flip side, Bajaj Finserv down by 2.99%, Bajaj Finance down by 2.75%, Nestle down by 1.57%, Axis Bank down by 1.41% and Mahindra & Mahindra down by 0.91% were the top losers.

Meanwhile, the Society of Indian Automobile Manufacturers (SIAM) has said that Automobile dispatches from companies to dealers rose 12 per cent in last year (2014) as compared to 2023 on the back of positive consumer sentiments which aided robust demand for two-wheelers. It stated total wholesales across categories rose to 2,54,98,763 units in 2024 against 2,28,39,130 units in 2023, a growth of 11.6 per cent.

SIAM President Shailesh Chandra said ‘2024 has been reasonably good for the auto industry. Positive consumer sentiments and the country's macroeconomic stability helped in propelling reasonable growth for the sector across vehicle segments.’ He added last year, the growth was primarily driven by the two-wheeler segment which grew by 14.5 per cent in 2024 over a year ago. Dispatches of scooters, bikes and models rose by 14.5 per cent to 1,95,43,093 units in 2024 compared to 1,70,75,432 units a year ago. Motorcycle dispatches witnessed a growth of 12 per cent year-on-year to 1,23,52,712 units in the previous year. 

Further he stated that passenger vehicles and three-wheelers posted their highest-ever sales in a calendar year. Passenger vehicles grew by 4 per cent in 2024 compared to 2023, with sales of around 43 lakh units. Similarly, three-wheelers posted a growth of 7 per cent in 2024 with sales of 7.3 lakh units. However, commercial vehicles posted a slight dip of 3 per cent in 2024 compared to the preceding year. Besides, he added ‘The stable policy ecosystem of the Government of India in 2024, carrying on from the previous years, has helped the industry. As the new year commences with a positive sentiment being created through the Bharat Mobility Global Expo, this momentum would further propel growth in 2025.’

The CNX Nifty is currently trading at 23256.90, up by 80.85 points or 0.35% after trading in a range of 23165.30 and 23273.55. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 3.91%, NTPC up by 3.50%, Coal India up by 2.44%, Maruti Suzuki up by 2.43% and Kotak Mahindra Bank up by 1.95%. On the flip side, Bajaj Finserv down by 3.01%, Bajaj Finance down by 2.74%, HDFC Life Insurance down by 1.81%, Axis Bank down by 1.77% and Shriram Finance down by 1.67% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 69.54 points or 0.18% to 38,404.76, Taiwan Weighted lost 264.37 points or 1.17% to 22,533.15, Straits Times fell 19.58 points or 0.52% to 3,769.19 and Shanghai Composite weakened 7.96 points or 0.25% to 3,232.98.

On the flip side, Hang Seng advanced 44.68 points or 0.23% to 19,264.46, KOSPI increased 4.80 points or 0.19% to 2,502.20 and Jakarta Composite gained 42.8 points or 0.61% to 6,999.47.
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