Stock Market Today - December 9; Indian Stocks Weather Global Storms
Closing Bell - Stock Market 10 December
On December 10, 2024, the Indian stock markets experienced a relatively subdued performance. The BSE Sensex closed flat at 81,510.05, with a marginal increase of 1.59 points. The Nifty50 ended at 24,610.05, showing a slight decline of 8.95 points or 0.04%. This stability in the Sensex, despite the overall muted market activity, was attributed to the support provided by bank and technology stocks.
Broader Market Performance
Contrary to the benchmark indices, the broader markets exhibited a positive trend, continuing their upward trajectory for the 13th consecutive day.
- The Nifty Smallcap 100 index increased by 0.28%.
- The Nifty Midcap 100 experienced a gain of 0.23%.
- The Nifty Microcap 250 finished with a 0.66% increase.
All these indices have shown a remarkable growth of 9-12% from their recent lows during this 13-session period.
Market Trends and Factors
Market experts anticipate a period of consolidation in the near future, with no significant triggers expected to drive the market into a new bull phase or cause a substantial correction from the current levels. This sentiment is further supported by the absence of major catalysts that could influence the market's trajectory.
FMCG stocks, in particular, have been facing selling pressure due to their current phase of sluggish growth.
Analysts at Kotak Securities believe that the Indian market remains an attractive investment destination, primarily due to India's status as one of the fastest-growing major economies globally. However, they advise investors to approach the market with a sense of cautious optimism, suggesting that while long-term growth potential is intact, short-term volatility should be anticipated.
Expert Outlook
Shripal Shah, the Managing Director and CEO of Kotak Securities, highlights that India's economic growth, coupled with the increasing number of young investors entering the stock market, is expected to fuel overall market growth in 2025. Kotak Securities also predicts that the equity market will gain momentum and commodities will surpass their historical highs in 2025.
Commodities Market Updates
Gold prices remained positive, trading around $2700 per ounce internationally. This trend is attributed to the rising demand for safe-haven assets amid escalating tensions in the Middle East, particularly in Syria and South Korea.
In contrast, crude oil futures experienced a decline despite China's efforts to stimulate its economy through proposed policy measures.
The study by the International Copper Association India (ICAI) reveals a 13% year-on-year increase in India's copper demand during the 2023-2024 fiscal year, reaching 1.7 million tonnes. This growth is attributed to the overall economic expansion, with a notable 21% average annual increase in copper demand observed between 2020-2021 and 2023-2024.
Mid Day Updates - 10 Dec
Benchmark Indian equity indices BSE Sensex and Nifty 50 were trading lower on Tuesday.
At 1 PM, the BSE Sensex stood at 81,353.63, down by 154.83 points, or 0.19%, while the Nifty 50 was at 24,561.90, slipping by 57.10 points, or 0.23%.
Sectoral Performance: Mixed Trends
While the overall market remained relatively flat, some sectors experienced notable movements. The Auto, OMC (Oil Marketing Companies), and Consumer Durables indices were under pressure, declining by 0.28%, 0.14%, and 0.09%, respectively. In contrast, the Realty index exhibited strong growth, rising by 0.83%, followed by gains in the IT, Healthcare, and Pharma indices.
Nifty IT Index Reaches Record High
The Nifty IT index achieved a new all-time high of 45,377.75, driven by strong performance from major IT companies. The index surged by 1.21% from its previous close. Among the top performers were LTIMindtree (up 2.12%), Mphasis (up 2.02%), Wipro (up 1.70%), and Infosys (up 1.53%).
Mid-Cap and Small-Cap Indices Surge
The broader market indices, Nifty Midcap 100 and Nifty Smallcap 100 demonstrated significant gains. The Nifty Midcap 150 index soared over 9% from its November low, while the Smallcap 250 index jumped nearly 12% from its November low, indicating a potential extended recovery in the market.
Notable Stock Movements: Metropolis Healthcare, Glenmark Pharma, Bajaj Healthcare
Metropolis Healthcare shares rose 2.88% following the company's announcement of its acquisition of Core Diagnostics. This acquisition is expected to bolster Metropolis Healthcare's capabilities in advanced cancer testing and expand its market presence.
Glenmark Pharmaceuticals shares climbed 4.1% after the company reported positive results from phase 1 trials of its Trispecific TREAT Antibody, ISB 2001, for the treatment of multiple myeloma. The study demonstrated a high overall response rate and a favourable safety profile.
Bajaj Healthcare shares reached a new 52-week high of Rs 466.30 per share, driven by the company's announcement of a CDMO contract with UK/EU-based companies for 15 new APIs.
Shares of Muthoot Finance and Manappuram Finance surged as much as 3.1% on the BSE during Today’s trading session. The rally was driven by a rise in gold prices, which reached a two-week high on Monday, following the resumption of gold purchases by China's central bank after a six-month pause.
Market Outlook and Global Factors
Market analysts predict that Indian markets are likely to focus on stock-specific trades as investors await US inflation data, which could influence the Federal Reserve's decision on a potential rate cut. The actions of foreign institutional investors (FIIs) are also expected to play a key role in market direction. Global markets were influenced by various factors, including China's announcement of more proactive fiscal and moderately looser monetary policies, US inflation data, and geopolitical events in the Middle East.
Market Start of the Day Update - 10 December
Indian stock markets opened on a muted note on December 10, 2024, amid mixed global cues and ongoing volatility.
Market Performance
The Sensex opened higher at 81,575.96 from its previous close of 81,508.46. and is currently trading at 81,596.04 as of 11:10 am, up by 87.58 points or 0.11 per cent. Similarly, the Nifty opened at 24,652.65 compared to its previous close of 24,619.00 and is now at 24,637.35, gaining 18.35 points or 0.075 per cent.
Sector Performance
Sectoral Trends: The market showed mixed sector performance. Selling pressure was observed in sectors like FMCG, PSU Bank, auto, and pharma, while gains were noted in capital goods, IT, and metal stocks. Notable gainers included L&T and Wipro.
Global Influences
Asian Markets: Most Asian stocks showed positive movement, particularly after China hinted at stronger stimulus measures to support its economy, leading to gains of over 2% in Chinese and Hong Kong markets16. This optimism is contributing to a cautiously positive sentiment in Indian markets.
Investor Sentiment
Foreign Institutional Investors (FIIs): FIIs were net buyers in the previous session, adding ₹726 crore worth of equities on December 9. This buying activity may help sustain market momentum despite the cautious opening.
Expert Analysis
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, predicts that the market will likely remain within a narrow range in the short term, lacking significant catalysts for either a major upward or downward trend. Vijayakumar also anticipates the continued strength of banking and IT stocks, supported by favorable conditions.
Mid Day Updated - 9 December; Sensex Edges Up, Nifty Flat Amidst Global Cues
At midday, the Indian stock market is showing mixed signals, with the BSE Sensex and Nifty 50 experiencing slight fluctuations.
BSE Sensex (03:06:00 PM) : The Sensex is currently at 81,491.32, down by 217.81 points or 0.27. Earlier in the day, it opened slightly higher.
Nifty 50: The Nifty is trading at 24,616.75, remaining flat and showing minimal movement from its previous close.
Sector Performance
- Gainers: Key sectors such as Auto, FMCG, Metal, and Financials are performing well. Notably, auto stocks are buoyed by news of upcoming price hikes from major manufacturers like Hyundai and Maruti1.
- Losers: The IT sector is down approximately 1.5%, with Tata Consumer Products and HUL among the top losers.
Global Influences
The Indian markets are influenced by positive trends in US markets, where expectations of a Federal Reserve rate cut have lifted investor sentiment. This follows a report indicating that US nonfarm payrolls increased by 227,000 jobs in November, aligning with market expectations.
Asian Markets
Asian markets exhibited mixed results: Japan's Nikkei 225 rose by 0.15%, while South Korea's Kospi fell by 1.3%, reflecting ongoing political uncertainties in the region.
Investor Sentiment
Market analysts suggest that despite some volatility, there remains an optimistic outlook for continued upward movement in the near term, with potential targets for Nifty around 25,000 if current trends persist.
Overall, while the Sensex shows slight gains and Nifty remains flat, investor focus is shifting towards upcoming economic indicators and macroeconomic data releases scheduled for this week.
Stocks in Spotlight
HDFC Bank: The stock has reached a 52-week high, trading at approximately Rs 1,879, just 0.09% away from this peak. It has outperformed its sector by 0.69% today and is showing strong momentum across various moving averages.
L&T (Larsen & Toubro): This stock is among the top gainers today, benefiting from positive sentiment in the capital goods sector. On December 5, L&T successfully overturned a ₹702 crore customs duty demand, which likely bolstered investor sentiment by eliminating a significant financial liability.
Kotak Mahindra Bank: Also featured as a top gainer, Kotak Mahindra is experiencing favourable trading conditions alongside HDFC Bank, reflecting overall strength in the banking sector despite some volatility in the broader market.
Godrej Consumer Products: In contrast, this stock has fallen by approximately 9%, highlighting that GCPL announced it expects sales growth to be in the mid-single digits for the October-December quarter. Additionally, the company projected flat underlying volume growth (UVG) for its standalone business, indicating subdued demand conditions in the fast-moving consumer goods (FMCG) sector
Tata Power: The company is planning a substantial investment of around Rs 1.25 trillion over the next few years to double its operational capacity in renewable energy, which positions it favourably for future growth as demand for green energy increases.
Suzlon Energy: Priced under ₹100, Suzlon is noted for its significant role in renewable energy and has shown impressive growth metrics over the past five years, making it a stock of interest for investors looking at long-term opportunities.
The Indian stock markets commenced trading on December 9, 2024, with a noticeable lack of enthusiasm, mirroring the cautious sentiment prevailing among investors. Benchmark indices, the BSE Sensex and Nifty 50, opened lower, reflecting the impact of the Reserve Bank of India's (RBI) revised economic forecasts. The Sensex experienced a decline of 106 points, or 0.13%, settling at 81,602, while the Nifty 50 dipped by 43.90 points, equivalent to 0.18%, reaching 24,633.
RBI's Downward Revision of Growth Forecast Impacts Market Sentiment
The RBI's decision to lower the GDP growth projection for FY25 from 7.2% to 6.6%, citing a slowdown in economic activity, weighed heavily on investor sentiment. This downward revision, coupled with an upward revision of the inflation estimate from 4.5% to 4.8%, further dampened market spirits. The central bank's move to reduce the cash reserve ratio (CRR) to 4%, intended to boost liquidity in the banking system, failed to offset the negative impact of the revised forecasts.
FMCG Sector Dragged Down by Godrej Consumer Products
The FMCG sector emerged as the biggest laggard, registering a decline of 1.62%, primarily due to a significant drop in the share price of Godrej Consumer Products. The company's stock plummeted by 10% following its announcement of anticipated flat volume growth in the December quarter. Godrej Consumer Products attributed this subdued outlook to factors such as increased soap prices and unseasonal rainfall impacting sales in the home insecticides segment. The Nifty FMCG index also mirrored this downward trend, falling by over 1%.
Expert Opinions and Market Outlook
Manishi Raychaudhuri, CEO of Emmer Capital Partners, advised investors to exercise caution, emphasizing that geopolitical tensions could drive volatility and pressure in Indian markets in 2025.
Anand James, Chief Market Strategist at Geojit Financial Services, pointed out that consecutive closes above 24,500 on the Nifty encourage a medium-term upside movement up to 25,600-700.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the recent market rally is primarily driven by leading banks and the return of Foreign Institutional Investors (FIIs). However, he expressed doubts about the rally's sustainability, citing concerns about the slowing Indian economy and potential future selling by FIIs
Other Notable Market Trends
Foreign investors have made a significant comeback to Indian equities with a net investment of Rs 24,454 crore in the first week of December.
Fintech companies are increasingly offering traditional banking products like fixed deposits (FDs) to broaden their financial services.
The Indian rupee opened at 84.723 against the US dollar, showing a bearish trend.