Indices Start Strong; Nifty Crosses 23,800
The Indian equity markets began Thursday on a robust note, with the Nifty scaling past the 23,800 mark despite volatility driven by the monthly F&O series expiry. While PSU bank, banking, and financial services sectors faced losses, gains in media, realty, and pharma stocks lent support to the market.
At 09:30 IST, the S&P BSE Sensex surged by 343.34 points (0.44%) to 78,815.12, and the Nifty 50 index added 103.60 points (0.44%) to settle at 23,831.25. In the broader market, the S&P BSE Mid-Cap index declined slightly by 0.02%, while the S&P BSE Small-Cap index rose 0.30%.
Market breadth showed strength, with 1,873 shares advancing, 900 declining, and 159 remaining unchanged on the BSE.
Institutional Activity Reflects Mixed Sentiment
On December 23, 2024, Foreign Portfolio Investors (FPIs) sold shares worth Rs 2,454.21 crore, while Domestic Institutional Investors (DIIs) were net buyers, investing Rs 2,819.25 crore, according to provisional data.
Stock Highlights
- J&K Bank:
Shares of Jammu and Kashmir Bank surged 3.01% following the board’s approval of Amitava Chatterjee as the Managing Director and CEO. His three-year tenure will begin on December 30, 2024. - Ultratech Cement:
Ultratech Cement gained 0.42% after signing an energy supply agreement to acquire 26% equity shares of Clean Max Sapphire, aligning with its green energy goals and regulatory compliance for captive power consumption. - Transport Corporation of India (TCI):
TCI rose 0.23% after announcing a slump sale agreement to transfer its chemical logistics business to TCI Chemical, a wholly owned subsidiary. The sale, valued at Rs 45 crore, aims to streamline its operations.
Key Market Indicators
- 10-Year Benchmark Yield: India’s 10-year federal paper yield increased to 6.890% from the previous close of 6.776%.
- Rupee Performance: The rupee weakened slightly against the dollar, hovering at 85.2450, compared to its previous close of 85.1500.
- MCX Gold Futures: Gold futures for February 5, 2025, gained 0.45% to settle at Rs 76,614.
- Brent Crude: Brent crude for February delivery rose 0.35% to $73.84 per barrel.
Global Market Trends
Asia-Pacific Markets:
Stocks in the Asia-Pacific region advanced, although several markets remained closed for Boxing Day. Investors tracked developments in Japan, where the government is preparing a record $735 billion budget for the next fiscal year to address social security and debt-servicing costs.
Bank of Japan Governor Kazuo Ueda expressed optimism about achieving 2% inflation by 2025, supported by wage growth.
Chinese Market Developments:
The Chinese government announced plans to stabilize the declining real estate market through measures like optimizing housing supply.
European and US Markets:
European markets saw gains in a truncated Christmas Eve session. In the US, major indices extended their rally on Christmas Eve, with the S&P 500 gaining 1.1% to reach 6,040.04, the Dow Jones adding 390.08 points (0.91%) to close at 43,297.03, and the Nasdaq Composite climbing 1.35% to 20,031.13.
The seasonal Santa Claus rally, marking gains in the final trading days of December and the first two days of January, has boosted the S&P 500 by 1.8% this week.
Despite market volatility triggered by the F&O expiry, indices maintained their upward trajectory, supported by gains in specific sectors and global optimism. As investors eye upcoming data and trends, the question remains: Will this rally sustain into the new year?
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