Sensex 700 pts higher at 79,200; IT, auto, financial stocks lead gains

Benchmark Indian equity indices BSE Sensex and Nifty50 were trading higher on Thursday as most major global markets returned from the New Year’s Day break.

At 12 PM, the BSE Sensex was higher by 723 points, or 0.92 per cent, at 79,231.30, while the Nifty50 was at 23,945.10, ahead by 202.20 points, or 0.85 per cent.

After the opening bell, 12 out of the 30 stocks on the BSE Sensex were trading lower, with losses capped by Adani Ports & SEZ (down 0.37 per cent, followed by NTPC, TCS, Sun Pharma, and Bharti Airtel, while gains were led by Bajaj Finance, Kotak Mahindra Bank, Bajaj Finserv, Zomato, and Infosys.

On the Nifty50, 27 out of the 50 stocks were trading lower, with losses capped by Wipro (down 0.82 per cent), followed by Hero MotoCorp, NTPC, Britannia Industries, and Adani Enterprises.

Across sectors, the Metal, Pharma, FMCG, IT, Realty, Healthcare, and Consumer Durables indices were under pressure, while among the sectoral gainers were the Nifty Bank, Auto, Financial Services, Media, and Oil indices.

The broader markets were trading with slight gains, with the Nifty Midcap 100 and the Nifty Smallcap 100 indices climbing 0.03 per cent and 0.04 per cent, respectively.

Even as the Indian markets climbed on the first trading session of calander year 2024, on Wednesday, January 1, investors here are likely to tread cautiously as most major global markets reopen after the Christmas Day and New Year’s Day break in the face of continuing headwinds that include a weakening rupee, higher US Treasury bond yields, interest rate trajectory in the US and India, and tariff-related uncertainties during the upcoming Donald Trump administration.

That apart, on the top of their minds would be a slew of macroeconomic data points on tap today, including the US’, and India’s, December month final Manufacturing PMI data, apart from the US’ jobless claims. Besides, India Nifty50’s weekly F&O expiry will also keep investors busy today.

Separately, a Business Standard poll of 10 respondents showed the rupee, which weakened almost 3 per cent last calendar year, to stay under pressure. The median of the survey indicated the rupee to be around 86 a dollar by the end of March.

Elsewhere, the private sector has pulled back on spending for new factories and other long-term assets, while government infrastructure projects, such as new roads, have also slowed. The total value of new project announcements in the December 2024 quarter declined 22 per cent year-on-year to Rs 6 trillion, according to data from tracker Centre for Monitoring Indian Economy (CMIE). Meanwhile, the value of completed projects plummeted 52 per cent year-on-year to less than Rs 1 trillion.

In other news, the net goods and services tax (GST) collection grew marginally by 3.3 per cent Y-o-Y to Rs 1.54 trillion in December, amid an increase in refunds, according to provisional data released by the government on Tuesday. Sequentially, the mopup was lower than November’s level of Rs 1.63 trillion, which saw 11.1 per cent Y-o-Y growth.

On the positive side, the domestic passenger vehicle (PV) wholesales in the Indian automobile industry rose by 11 per cent Y-o-Y in December to 320,000 units, driven by strong demand for SUVs (sports utility vehicles), a robust recovery in the urban market, year-end discounts, and solid sales of CNG-powered cars. READ MORE

That apart, the NSE has issued a guidance note for stock brokers to ensure prevention and detection of fraud or market abuse. The guidelines follow Securities and Exchange Board of India’s (Sebi’s) directions to the exchange to enforce an institutional mechanism to curb market abuse.

In the primary markets today, Indo Farm Equipment IPO from the mainboard section will close for subscription today, while in the SME segment, today is the last day to subscribe to Technichem Organics IPO.

That apart, Leo Dry Fruits and Spices IPO will enter its second day of subscription, while Davin Sons Retail IPO and Parmeshwar Metal IPO will open for subscription today. Anya Polytech and Fertilisers shares will debut on the NSE SME platform today.

Asian stocks were trading mixed on Thursday as several major markets resumed trading after the New Year’s Day holiday. South Korea’s Kospi was lower by 0.02 per cent, while the Kosdaq rose 1.01 per cent.

Mainland China’s CSI 300 was down 0.74 per cent while Hong Kong’s Hang Seng Index lost 1.78 per cent and the Shanghai Composite was lower by 0.46 per cent.

Australia’s S&P/ASX 200 climbed 0.41 per cent, while markets in Japan are closed on Thursday and Friday on account of Bank Holiday.

In the previous trading session, benchmark equity indices BSE Sensex and NSE Nifty50 ended the current year’s first trading session on a higher note. The 30-share BSE Sensex added 368.40 points, or 0.47 per cent, to settle at 78,507.41.

Similarly, NSE Nifty50 settled at 23,742.90, up 98.10 points, or 0.41 per cent, from its previous close.

Broader markets also mirrored the benchmarks to settle higher, with the Nifty Midcap 100 and Nifty Smallcap 100 ending with gains of 0.44 per cent and 1.02 per cent respectively.

All the sectoral indices on the NSE also ended in green, barring Nifty Realty and Pharma. Auto shares outperformed others, with Nifty Auto index ending higher by 1.34 per cent.