Sensex 300 pts higher at 78,250; Broader mkts gain 1%; Oil, health, pharma lead

Indian benchmark equity indices BSE Sensex and Nifty50 were trading higher, tracking overnight gains on the S&P 500 and Nasdaq.

At 11 AM, the BSE Sensex was higher by 253 points, or 0.32 per cent, at 78,218, while the Nifty50 was at 23,721.05, ahead by 105 points, or 0.44 per cent.

After the opening bell, on the 30-stock BSE Sensex, only three stocks, including Zomato (down 3.94 per cent), followed by Mahindra & Mahindra, and Tata Motors, were trading lower, while gains were led by Titan (up 1.90 per cent), followed by Nestle India, Power Grid Corp., Tata Steel, and IndusInd Bank.

On the Nifty50, only five stocks, including Apollo Hospitals Enterprises (down 0.82 per cent), followed by Mahindra & Mahindra, Tata Motors, Bajaj Auto, and Hero MotoCo, were trading lower, while gains were led by ONGC (up 3.11 per cent), followed by Tata Consumer Products, Titan, Shriram Finance, and BPCL.

That apart, all the sectoral indices, barring the Media index (down 0.58 per cent), were trading higher, with the top Oil & Gas and Consumer Durables emerging as the top gainers, climbing 1.47 per cent and 1.16 per cent, respectively.

The PSU Bank, Metal, FMCG, IT, Bank, and Financial Services indices were the other notable gainers.

The broader markets were higher too, with the Nifty Midcap 100 climbing 0.63 per cent and the Nifty Smallcap 100 gaining 0.55 per cent. In contrast, the India VIX had declined 2.63 per cent to 15.24.

While the Indian equity benchmarks saw their worst single-day fall in the past three months on account of continued selling by foreign institutional investors (FIIs), markets in other regions, including Europe and the US climbed as a Washington Post report indicated that the incoming Donald Trump administration might be exploring imposing a less severe set of tariffs targeted towards sectors critical for the US. However, President-elect Trump later denied the reports as ‘Fake News’ on a Truth Social post.

While FIIs net sold Indian equities worth Rs 2,575.06 crore on Monday, domestic institutional investors (DIIs) continued to repose faith in the long-term prospects of the Indian economy by buying shares worth Rs 5,749.65 crore during the previous trading session.

In other news, as the finance ministry concluded nine rounds of pre-Budget consultations on Monday, steps to boost consumption and employment, tax concessions — for individuals and micro, small and medium enterprises (MSMEs) — along with wide ranging reforms were among the suggestions given by various stakeholders.

However, the rupee fell to a new low of Rs 85.83 per dollar on Monday as the US dollar hovered near a two-year high. State-owned banks sold dollars on behalf of the Reserve Bank of India (RBI) which avoided further depreciation. The local currency settled at Rs 85.78 per dollar on Friday. READ MORE

Separately, the finance ministry has suggested that banks and non-banking financial companies (NBFCs) increase their participation in financing large-scale infrastructure initiatives, which are crucial for India’s ambition to achieve developed nation (Viksit Bharat) status by 2047. Speaking at an event organised by the India Infrastructure Finance Company (IIFCL), M Nagaraju, secretary of the Department of Financial Services in the finance ministry, said he had advised IIFCL, National Bank for Financing Infrastructure and Development, and banks to move away from secured assets and pursue new, larger infrastructure projects. READ MORE

Elsewhere, Indian bonds included last year in a key global benchmark will fail to draw as much money as previously estimated, according to Morgan Stanley. Analysts Nimish M. Prabhune and Gek Teng Khoo, in a note, cited pressure on the Indian rupee, rising US Treasury yields, a hawkish Federal Reserve stance and uncertainties around US trade policy as reasons for the shortfall. READ MORE

On the positive side of things, amidst discussions about slowing government capex, the Ministry of Railways has spent 76 per cent of its allocated budgetary capital expenditure for 2024-25 (FY25) in the first nine months of the financial year, according to estimates from Indian Railways. READ MORE

In other news, the 100-stock largecap basket of Mutual funds (MFs) has seen a major reshuffle in the latest semi-annual reclassification, with seven midcap stocks and four new listings earning the largecap tag. READ MORE

In contrast, shares of state-owned bank stocks were under pressure on Monday due to muted deposit and credit growth numbers reported by these lenders in the October-December quarter (Q3) of 2024-25 (FY25). READ MORE

Elsewhere, the Securities and Exchange Board of India (Sebi) on Monday relaxed settlement norms for brokerage accounts remaining inactive for more than 30 days. Brokers will now have to return the money lying in such idle accounts on a pre-decided settlement date every month. READ MORE

The primary markets, meanwhile, is poised to see heightened activity today, with one mainline IPO, Indo Farm Equipment Limited IPO, listing on the bourses, and two mainline IPOs, including Capital Infra Trust InvIT IPO and Quadrant Future Tek Limited IPO, opening for subscription.

Standard Glass Lining Technology Limited IPO in the mainline section will enter its second day of subscription. It got fully subscribed within minutes of opening for share sale on Monday and finally ended the day with 13.32 times subscription.

In the SME section, too, one IPO of Technichem Organics Limited, will list on the bourses, while the subscription window for Fabtech Technologies Cleanrooms Limited IPO will close. Three SME IPOs, including Avax Apparels And Ornaments Limited IPO, Delta Autocorp Limited IPO, and B.R.Goyal Infrastructure Limited IPO, will open for bids today, and Indobell Insulation Limited IPO will enter its second day of subscription.

In the previous trading session, benchmark equity indices BSE Sensex and NSE Nifty50 settled down by over 1 per cent each, dragged by selling pressure across counters. The 30-share Sensex tumbled as much as 1,258.12 points or 1.59 per cent to settle at 77,964.99, while the Nifty50 ended lower by 388.70 points or 1.62 per cent at 23,616.05. The Nifty50 recorded a day’s high of 24,089.95, while the day’s low was 23,551.90 on Monday.

The fear index, India VIX, which gauges volatility in the markets, ended higher by 15.58 per cent at 15.65.

Broader markets also mirrored the benchmarks as the Nifty Smallcap100 and Nifty Midcap100 indices ended down by 2.70 per cent, and 3.20 per cent, respectively. All the sectoral indices ended in the red, with the Nifty PSU Bank being the worst hit, ending down by 4 per cent. Other notable decliners included the Nifty Bank, Auto, Financial Services, FMCG, Media, Metal, Private Bank, Realty, Consumer Durables, and Energy, among others that fell between 1 per cent and 3 per cent.

Markets in the Asia-Pacific region, meanwhile, climbed on Tuesday, following a tech rally on Wall Street that saw the S&P500 and Nasdaq Composite post back-to-back gains.

Japan’s Nikkei 225 rebounded 2.06 per cent after yesterday’s fall, while the broad-based Topix gained 1.12 per cent. South Korea’s Kospi advanced 1.01 per cent, and the small-cap Kosdaq rose 0.30 per cent. Australia’s S&P/ASX 200 was ahead by 0.13 per cent.

Hong Kong’s Hang Seng was lower by 0.51 per cent, while mainland China’s CSI 300 was ahead by 0.39 per cent and the Shanghai Composite was marginally ahead by 0.05.

Hong Kong-listed tech stocks were in the spotlight after the US Defense Department added Chinese tech giant Tencent Holdings and battery maker CATL to a list of firms it calls “Chinese military companies.”

Tencent’s Hong Kong listed shares fell 5 per cent, while its American depositary receipts fell almost 8 per cent overnight.

Global stocks rose while the US dollar index dropped on Monday after President-elect Donald Trump denied a newspaper report that his incoming administration would likely pursue a less-aggressive tariff policy than he previously threatened.

European stocks and currencies climbed following a Washington Post report earlier on Monday that Trump aides were exploring tariff plans that would be applied to every country but cover only certain sectors deemed critical to national or economic security. That would mark a significant shift from Trump’s campaign pledge for broader tariffs.

Trump called the story wrong and “just another example of Fake News” in a social media post.

The benchmark S&P 500 index and the Nasdaq finished higher, led by gains in communication services, technology and materials equities. The Dow ended lower, dragged down by consumer staples stocks.

The Dow Jones Industrial Average fell 0.06 per cent to 42,706.56, the S&P 500 rose 0.55 per cent to 5,975.38 and the Nasdaq Composite rose 1.24 per cent to 19,864.98.

The pan-European stock index finished up 0.94 per cent at 512.37, near its session high of 513.08. MSCI’s gauge of stocks across the globe rose 1.20 per cent to 857.39.

The dollar index, which measures the greenback against a basket of currencies, fell 0.68 per cent to 108.22, with the euro up 0.8 per cent at $1.039.

Yields on long-term Treasury securities, including the benchmark 10-year note and 30-year bond, rose as traders weighed Trump’s tariff policy. The 10-year yield rose 1.7 basis points to 4.612 per cent, while the 30-year yield climbed 1.9 basis points to 4.8337 per cent.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.5 basis points to 4.264 per cent.

Oil prices eased in volatile trade. Brent futures fell 0.3 per cent to settle at $76.30 a barrel, while US West Texas Intermediate (WTI) crude fell 0.5 per cent to settle at $73.56.

Gold prices lost ground as rising US Treasury yields offset a weak US dollar. Spot gold fell 0.1 per cent to $2,636.35 an ounce. US gold futures settled 0.3 per cent lower at $2,647.40.