Sensex 200 pts higher at 76,950; PSB, Metal, Realty lead, FMCG, Cons Dur drag

Indian benchmark equity indices BSE Sensex and Nifty50 were trading higher on Thursday, amid positive global cues.

At 11 AM, the BSE Sensex was higher by 220.10 points, or 0.29 per cent, at 76,950.18, while the Nifty50 was at 23,290.10, ahead by 76.90 points, or 0.33 per cent.

After the opening bell, only six stocks, including Hindustan Unilever (down 0.68 per cent), followed by Nestle India, Sun Pharma, ITC, Bharti Airtel, and Mahindra & Mahindra, were trading lower, while gains were led by Zomato (up 4.65 per cent), followed by Adani Ports & SEZ, SBI, UltraTech Cement, and IndusInd Bank.

On the Nifty 50, 34 stocks were trading higher, with gains led by HDFC Life (up 9.39 per cent), followed by Adani Enterprises,

SBI Life, Adani Ports & SEZ, and SBI, while losses were capped by Hindustan Unilever (down 0.97 per cent), followed by Tata Consumer Products, Nestle India, ITC, and Cipla.

Across sectoral indices, the PSU Bank index was the top gainer, climbing 2.46 per cent. The Nifty Bank was higher by 1.10 per cent and the Financial Services index was ahead by 1.15 per cent. That apart, the Media, Metal, and Realty indices were higher by more than 1 per cent each, followed by the IT, Auto, Private bank, Consumer Durables, and Energy indices were also trading higher.

On the flip side, only the FMCG and Pharma indices were lower by 0.24 per cent and 0.14 per cent, respectively, while the Healthcare index was flat.

The broader market indices ha surged ahead, with the Nifty Midcap 100 climbing 1.50 per cent, and the Nifty Smallcap 100 gaining 1.55 per cent.

Wall Street’s benchmark indices rallied overnight and Treasury yields pulled back after lower-than-expected core inflation readings there strengthened prospects of at least two rate cuts by the Federal Reserve during this year. Adding to the momentum was the stellar December quarter results posted by some of the largest banks on Wall Street, including JPMorgan and Goldman Sachs, among others. Asian markets were also trading higher following the robust showing on Wall Street.

Moreover, investors here are expecting December quarter numbers from some large names, including oil-to-telecom conglomerate Reliance Industries, IT bellwether Infosys, and Axis Bank, among others.

That apart, a combination of concerns about corporate earnings, uncertainty about rate cuts in the US, and strengthening US dollar and bond yields has nudged foreign portfolio investors (FPIs) to continue with their selling in Indian equities in 2025. Till January 14, FPIs have been net sellers of shares worth Rs 30,307 crore. On Wednesday (January 15), FPIs were net sellers worth Rs 4,534 crore, according to provisional data from exchanges. The selling has pulled down the benchmark Nifty and Sensex by 1.8 per cent on a Year-to-Date (YTD) basis.

Moreover, Indian financial markets are expected to remain volatile in the first half of 2025 amid global and domestic uncertainties, including policies of the Donald Trump administration and the upcoming Union Budget, said Motilal Oswal Private Wealth (MOPW) in its outlook for the calendar year. READ MORE

Elsewhere, after hitting fresh lows for five consecutive sessions, the rupee staged a recovery on Wednesday, recording its best single-day gain versus the dollar in more than seven months. The rupee appreciated by 0.3 per cent to close at 86.36 per dollar, after hitting an intraday high of 86.30. On Tuesday, it had closed at 86.64 per dollar.

In other news, and a first for it, the Reserve Bank of India (RBI) has announced that it will conduct daily variable rate repo (VRR) auctions on all working days in Mumbai, until further notice. The daily auctions, aimed at easing the current liquidity tightness in the banking system, will begin on Friday, with a notified amount of Rs 50,000 crore. The liquidity deficit in the banking system has exceeded Rs 2 trillion in the past few days. READ MORE

That apart, with short-term rates firming up due to tight liquidity conditions, Indian corporates are opting to borrow long-term to take advantage of the attractive rates by locking them in these uncertain times. READ MORE

Elsewhere, India’s investments in green infrastructure and energy projects will grow five-fold over the next five years to Rs 31 trillion, according to market intelligence firm CRISIL. READ MORE

In the previous trading session, benchmark equity indices BSE Sensex and NSE Nifty50 ended in positive territory for the second consecutive day on Wednesday. The BSE Sensex added 224.45 points, or 0.29 per cent, to settle at 76,724.08, and the Nifty50 settled in the green at 23,213.20, with gains of 37.15 points, or 0.16 per cent.

In the broader markets, the Nifty Midcap100 and Nifty Smallcap100 ended with gains of 0.41 per cent and 0.56 per cent, respectively, while sectoral markets ended on a mixed note on Wednesday, with the Nifty IT and Realty indices leading with gains of up to 1.39 per cent. The Nifty Auto, FMCG, Media, and Healthcare indices were among those that ended lower, with losses extending up to 1.78 per cent.

Today, in the primary markets, Stallion India IPO in the mainline section and Landmark Immigration IPO in the SME section will open for subscription, while Rikhav Securities IPO (SME) and Kabra Jewels IPO (SME) will enter the Day 2 of their subscription windows. Laxmi Dental IPO (Mainline) and Barflex Polyfilms IPO (SME) will see their basis of allotment get finalised today as well.

Elsewhere, markets in the Asia-Pacific region climbed on Thursday, tracking the strong showing on Wall Street.

South Korea’s Kospi was up 1.16 per cent while the small-cap Kosdaq index was up 1.61 per cent, following the country’s central bank’s surprised announcement to keep benchmark rates unchanged at 3 per cent. Economists polled by Reuters had expected the Bank of Korea to cut its policy rate by 25 basis points.

Japan’s benchmark Nikkei 225 was trading up 0.54 per cent while the Topix was 0.18 per cent higher. Japan’s annual producer price index climbed 3.8 per cent in December, in line with expectations of economists polled by Reuters.

Hong Kong’s Hang Seng index was ahead by 1.72 per cent, and mainland China CSI 300 was higher by 1.7 per cent. Over in Australia, the S&P/ASX 200 was up 1.47 per cent.

A global equities gauge rallied on Wednesday while US Treasury yields fell after data showed core US inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further.

Oil prices rallied with support from a large draw in US crude stockpiles and potential supply disruptions from new US sanctions on Russia. But oil gains were limited as US and Qatar said negotiators reached a deal to end the war in Gaza between Israel and Hamas, after 15 months of bloodshed.

Earlier, US Bureau of Labor Statistics data showed the consumer price index (CPI) rose in line with expectations at an annual rate of 2.9 per cent in December, from November’s 2.7 per cent.

But core inflation, which excludes food and energy prices, rose by 3.2 per cent, which was below forecasts for 3.3 per cent.

Investors were particularly encouraged by the latest inflation reading since data released on Tuesday showed that US producer prices increased moderately in December.

After Wednesday’s release, traders were pricing close-to-even odds the Fed would cut interest rates twice by the end of this year, with the first reduction to come in June.

Adding to Wednesday’s upbeat tone were bumper fourth-quarter results from the likes of JPMorgan, which reported its biggest annual profit on record, top asset manager BlackRock, which logged a record $11.6 billion in assets, and Goldman Sachs, whose profit more than doubled in the final three months of 2024.

On Wall Street, all three major indices registered their biggest daily percentage gains since November 6, the day after the US presidential election.

The Dow Jones Industrial Average rose 703.27 points, or 1.65 per cent, to 43,221.55, the S&P 500 rose 107.00 points, or 1.83 per cent, to 5,949.91 and the Nasdaq Composite rose 466.84 points, or 2.45 per cent, to 19,511.23.

MSCI’s gauge of stocks across the globe rose 12.79 points, or 1.53 per cent, to 847.20, putting it on track for its biggest one-day percentage gain since September 19. Earlier, Europe’s STOXX 600 equity index had finished up 1.33 per cent.

The US dollar pared earlier losses but was still down against a basket of currencies after the data. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.08 per cent to 109.11.

The euro was down 0.16 per cent at $1.029 while against the Japanese yen, the dollar weakened 0.91 per cent to 156.52. Sterling strengthened 0.16 per cent to $1.2237.

In fixed income, US Treasury yields fell after the inflation data implied that a 2025 rate hike, which some investors had entertained, was off the table for now. When, or by how much, the Fed might cut was still up for debate, however.

The yield on benchmark US 10-year notes fell 13.5 basis points to 4.653 per cent, from 4.788 per cent late on Tuesday. The 30-year bond yield fell to 4.8774 per cent from 4.985 per cent.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 9.7 basis points to 4.268 per cent, from 4.365 per cent late on Tuesday.

In energy markets, US crude settled up 3.28 per cent at $80.04 a barrel and Brent settled at $82.03 per barrel, up 2.64 per cent on the day.

Spot gold rose 0.67 per cent to $2,695.21 an ounce. US gold futures rose 1.12 per cent to $2,707.60 an ounce.