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EQUITY
Markets gain for the second day
Jan-15-2025

Indian equity benchmarks erased some gains but managed to end in green for the second consecutive session on Wednesday amid buying in Utilities, Power and Realty stocks. Markets opened on a positive note and shifted into a narrow range with volatility that continued for throughout session. Traders got support after Union Minister of Commerce and Industry, Piyush Goyal has said that by 2027, India will be the world's third-largest economy, ahead of Japan and Germany. 

Some of the important factors for the markets:

India’s exports contracted 1% to $38.01 billion in December: India’s merchandise exports dipped by about 1 per cent to $38.01 billion in December 2024 against $38.39 billion a year ago. Imports increased by 4.8 per cent to $59.95 billion in December 2024 compared to $57.15 billion in the year-ago month. The trade deficit, or the gap between imports and exports, stood at $21.94 billion during the month under review.  

U.S. dollar and Treasury yields retreated: The dollar retreated slightly following a tame reading on US producer prices on Tuesday, which pulled Treasury yields off their highs, putting the focus on the release of US consumer inflation later in the session. 

Rupee gained for 2nd straight day: Indian rupee gained for the second straight day and was up by 12 paise at 86.40 (provisional) against the US dollar, tracking favourable cues from domestic equity markets and softening crude oil prices. 

FII outflows capped gains: According to exchange data, foreign institutional investors (FIIs) offloaded shares worth Rs 8,132 crore on January 14, marking the largest single-day selling in this calendar year (CY2025). 

Oil prices were largely steady: Oil prices were little changed, after falling in the previous day, as a dip in US crude stockpiles and expectations of supply disruptions from sanctions on Russian tankers lent support amid forecasts for lower global fuel demand. 

Global markets: European markets were trading higher after data showed an unexpected drop in British consumer price inflation in the month of December. Asian markets ended mostly down as investors digested soft U.S. producer inflation print and waited for the release of December Consumer Price Index (CPI) data later in the day for greater clarity on the path of Federal Reserve rates over the coming months.  

Finally, the BSE Sensex rose 224.45 points or 0.29% to 76,724.08, and the CNX Nifty was up by 37.15 points or 0.16% to 23,213.20.    

The BSE Sensex touched high and low of 76,991.05 and 76,479.70 respectively. There were 18 stocks advancing against 12 stocks declining on the index.           

The broader indices ended in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Utilities up by 2.45%, Power up by 1.75%, Realty up by 1.58%, IT up by 0.68% and Consumer Discretionary up by 0.62%, while Healthcare down by 1.20%, Auto down by 0.53%, Oil & Gas down by 0.28% and FMCG down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 4.36%, NTPC up by 3.35%, Power Grid Corporation up by 3.03%, Kotak Mahindra Bank up by 2.29% and Maruti Suzuki up by 1.69%. On the flip side, Mahindra & Mahindra down by 2.91%, Bajaj Finserv down by 2.27%, Bajaj Finance down by 2.16%, Axis Bank down by 2.14% and Tata Motors down by 0.93% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is finalising free trade agreements (FTAs) only after extensive consultations with all the concerned stakeholders, noting that unlike in the past, these pacts are now fair, equitable and balanced. Citing the agreement with the four-European nation bloc EFTA, Goyal said that for the first time in the history of FTAs, India has received a commitment of $100 billion FDI (foreign direct investment) in this pact. 

Commerce Minister also said that India's decision to opt out of RCEP (Regional Comprehensive Partnership Agreement) demonstrates its commitment to safeguarding national interests. He added that ‘it was not in the interest of MSMEs, and it would have opened a floodgate for Chinese goods into the country. Therefore, we refused to join RCEP.’

Besides, Goyal highlighted that the country's goods and services exports touched $778 billion in 2023-24, and this year, it is expected to cross $800 billion. He added that the government has rolled out a series of software measures to boost domestic manufacturing, and today India is the second largest mobile maker in the world.

The CNX Nifty traded in a range of 23,293.65 and 23,146.45. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were NTPC up by 4.01%, Trent up by 3.86%, Power Grid Corporation up by 2.88%, Kotak Mahindra Bank up by 2.14% and Maruti Suzuki up by 1.91%. On the flip side, Mahindra & Mahindra down by 2.90%, Axis Bank down by 2.53%, Bajaj Finserv down by 2.26%, Bajaj Finance down by 2.21% and Shriram Finance down by 1.77% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 59.49 points or 0.73% to 8,261.03, France’s CAC rose 24.22 points or 0.33% to 7,447.89 and Germany’s DAX gained 129.55 points or 0.64% to 20,400.88.

Asian markets ended mostly down on Wednesday, tracking Wall Street's mixed finish overnight ahead the release of December CPI data later in the day for greater clarity on the path of Federal Reserve rates over the coming months. But US producer prices rose by slightly less than expected in December, offering temporary relief to investors worried about inflation and interest rates. However, some falls were limited by reports that US President-elect Donald Trump's economic advisers are discussing slowly ramping up tariffs month by month, rather than imposing sizable levies in one go. Chinese shares fell ahead of Chinese 2024 GDP data due later in the week. Japanese shares declined, while yen strengthened after the Bank of Japan Governor Kazuo Ueda indicated that the central bank may consider raising interest rates if economic and price conditions continue to improve. The Kospi average ended marginally lower after impeached President Yoon Suk Yeol was arrested in connection with his failed declaration of martial law last month.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,227.12

-13.82

-0.43

Hang Seng

19,286.07

66.29

0.34

Jakarta Composite

7,079.56

122.89

1.74

KLSE Composite

1,562.12

-14.34

-0.91

Nikkei 225

38,444.58

-29.72

-0.08

Straits Times

3,772.58

-16.19

-0.43

KOSPI Composite

2,496.81

-0.59

-0.02

Taiwan Weighted

22,514.57

-282.95

-1.26
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