Sensex 100 pts higher at 81,650; Nifty at 24,650; IT, financials gain

Benchmark Indian equity indices BSE Sensex and Nifty 50 were trading higher on Tuesday.

At 10 AM, the BSE Sensex was at 81,705.96, higher by 197.50 points, or 0.24 per cent, while the Nifty 50 was at 24,666.40, ahead by 47.40 points, or 0.19 per cent.

Among the 30 constituent stocks in the BSE Sensex index, more than half were trading higher. Gains were led by Tata Motors (up 0.84 per cent), followed by Infosys, HCLTech, Bajaj Finance, and JSW Steel, while losses were capped by Mahindra & Mahindra (down 1.08 per cent), followed by Tech Mahindra, Axis Bank, Maruti Suzuki India, and UltraTech Cement.

In the Nifty 50 index, 33 stocks out of the 50 in the index were trading higher, with gains led by Shriram Finance (up 2.19 per cent), followed by Apollo Hospital Enterprises, HCLTech, Wipro, and Infosys, while losses were capped by Mahindra & Mahindra (down 1.19 per cent), followed by Bajaj Auto, Tech Mahindra, UltraTech Cement, and Trent.

Across sectoral indices, the Auto, OMC and Consumer Durables indices were under pressure, falling 0.28 per cent, 0.14 per cent, and 0.09 per cent respectively. On the flip side, the Realty index had climbed 0.83 per cent, followed by IT, Healthcare and Pharma indices.

Meanwhile, in the broader markets, the Nifty Smallcap 100 index had climbed 0.28 per cent, followed by the Nifty Midcap 100 index, which was marginally up by 0.03 per cent.

As investors keep an eye out for US inflation data scheduled for Wednesday for clues regarding a rate cut by the Federal Reserve next week, markets here are likely to engage in stock-specific trade today.

Actions by Foreign institutional investors, who net bought Indian equities worth Rs 724.27 crore on Monday (domestic institutional investors net sold shares worth Rs 1,648.07 crore during the trading session), are also expected to be a key driver in the absence of other major domestic triggers today. Chinese imports, exports and trade data will also be on investors’ radar.

Benchmark equity indices BSE Sensex and Nifty50 had ended Monday’s trading session on a lower note. The Sensex shed 200.66 points, or 0.25 per cent, to settle at 81,508.46, while the Nifty 50 settled at 24,619, down 58.80 points, or 0.24 per cent, from its previous close on Friday.

In the broader markets, the Nifty Midcap 100 and Nifty Smallcap 100 indices ended higher by 0.50 per cent and 0.19 per cent, respectively. FMCG stocks were the worst hit among the sectoral markets, with the Nifty FMCG index falling by 2.22 per cent, dragged by Godrej Properties, Tata Consumer, and Marico. This was followed by Media, Auto, Banking, OMCs, and Healthcare indices, with fell up to 2.02 per cent on Monday.

Notably, Nifty Financial Services, IT, Metal, Realty and Consumer Durables indices managed to eke out some gains during the trading session.

In a major development, the government on Monday appointed Sanjay Malhotra, currently serving as secretary in the Ministry of Finance, as the 26th governor of the Reserve Bank of India (RBI) for a three-year term, effective December 11. Malhotra, 56, succeeds Shaktikanta Das, who will demit office on Tuesday.

Apart from that, foreign direct equity investment witnessed a 45 per cent jump at $29.8 billion in the first six months of the current financial year, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT). Gross foreign direct investment, which includes equity capital of unincorporated bodies, reinvest earnings and other capital, saw 29 per cent rise at $42.3 billion during April-September. READ MORE

Moreover, inflows into corporate bond funds have risen to multi-year highs in recent months. The inflows into corporate bond funds jumped sharply in September 2024 to a multi-year high of Rs 5,039 crore. Investors poured in another Rs 4,644 crore in October. Including around Rs 2,200 crore estimated inflows in November, the three month tally rises to Rs 11,883 crore.

Markets in the Asia-Pacific region were mostly higher on Tuesday, as traders there assessed Beijing’s announcement of ‘more proactive’ fiscal measures and ‘moderately’ looser monetary policy next year to boost domestic consumption.

Hong Kong’s Hang Seng index, that had risen nearly 3 per cent following the announcement, extended its gains by another 3 per cent on Tuesday morning, climbing 3.2 per cent. The CSI 300 was also trading higher by 3.66 per cent, while the Shanghai Composite was ahead by 2.58 per cent.

Japan’s Nikkei 225 had climbed 0.32 per cent, while the Topix was higher by 0.41 per cent.

South Korea’s Kospi had gained 2.27 per cent, and the small-cap Kosdaq was up 4.6 per cent, even as investors there continued to monitor the country’s political situation.

However, global shares had turned lower on Monday as traders focused on US inflation data, while chip stocks fell. That apart, Beijing’s promise of more stimulus measures and the sudden collapse of the Syrian government boosted oil and gold prices more than 1 per cent.

US inflation data this week could cement a December interest rate cut by the Federal Reserve at its meeting next week. China’s decision on Monday to alter the wording of its stance toward monetary policy for the first time since 2010 helped global sentiment. Beijing pledged to introduce stimulus to encourage economic growth next year.

The rapid collapse over the weekend of Syrian President Bashar al-Assad’s 24-year rule complicates an already fraught situation in the Middle East.

Friday’s US monthly employment data was strong enough to soothe any concerns about the resilience of the economy, but not so robust as to rule out a rate cut from the Federal Reserve next week.

MSCI’s gauge of stocks across the globe fell 2.05 points, or 0.23 per cent, to 871.68.

The Dow Jones Industrial Average fell 240.59 points, or 0.54 per cent, to 44,401.93, the S&P 500 fell 37.42 points, or 0.61 per cent, to 6,052.85 and the Nasdaq Composite fell 123.08 points, or 0.62 per cent, to 19,736.69.

Shares of chip maker Nvidia fell 2.5 per cent after China’s market regulator said it had opened an investigation into the company over suspected violation of the country’s anti-monopoly law.

European shares closed at their highest levels in six weeks on Monday, led by mining and luxury stocks, after China’s promise of renewed stimulus. The STOXX 600 index edged up 0.1 per cent, and notched its eighth consecutive session of gains.

Last week’s US November payrolls report showed 227,000 jobs were created, compared with expectations for a rise of 200,000, while October’s hurricane-distorted number was revised up.

Markets now imply an 85 per cent chance of a quarter-point cut at the Fed’s December 17-18 meeting, up from 68 per cent ahead of the jobs figures, and markets have a further three cuts priced in for next year. The next test is Wednesday’s US inflation report.

The dollar index, which measures the greenback against a basket of currencies, rose 0.2 per cent to 106.16.

US Treasury yields rose as traders waited to see whether stubbornly high price pressures could derail expectations for a Fed rate cut next week. The yield on benchmark US 10-year notes rose 5 basis points to 4.203 per cent, from 4.153 per cent late on Friday.

The European Central Bank is widely expected to deliver a quarter-point cut on Thursday.

In Asian markets, Chinese stocks and bonds rallied after China’s Politburo was quoted as saying that the country will adopt an “appropriately loose” monetary policy next year, rather than a “prudent” one, marking the first time it has changed the wording of its stance in around 14 years.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 0.88 per cent.

This week is full of central bank meetings, aside from the ECB’s. The Swiss National Bank could cut rates by as much as half a point given slowing inflation, as could Canada’s central bank when it meets on Wednesday.

The Reserve Bank of Australia meets on Tuesday and is one of the central banks expected to hold fire, while Brazil’s central bank is set to hike again to contain inflation.

In France, President Emmanuel Macron had yet to name a new prime minister after Michel Barnier’s minority government collapsed last week over his austere budget. Geopolitical concerns lifted both oil and gold.

Spot gold gained 1.1 per cent to $2,662.98 per ounce, and US gold futures settled 1 per cent higher at $2,685.50. Oil prices rose over 1 per cent, with Brent futures settling up 1.4 per cent at $72.14 per barrel. US crude finished up 1.7 per cent at $68.37.

Bitcoin fell 5 per cent to $95,519 on Monday. It is down 7.1 per cent from the year’s high of $103,647 on December 5.