28 Dec 2024

Domestic Markets Gain Momentum Amid Sectoral Strength; Global Cues Support Sentiment

Domestic equity markets sustained upward momentum in late morning trading, rising over half a percent as investors increased their holdings. Strong buying in IndusInd Bank, Mahindra & Mahindra, Tata Motors, Bajaj Finance, and Bajaj Finserv drove the gains. Positive cues from other Asian markets bolstered domestic sentiment, despite concerns over a potential $15 billion rise in the import bill due to rupee depreciation.

Banking stocks remained in focus after the RBI’s annual report highlighted six consecutive years of profitability growth in the banking sector. On the BSE, Auto, Consumer, Healthcare, Bankex, and FMCG sectors saw notable buying, while Realty, Oil & Gas, PSU, Metal, and Capital Goods witnessed selling pressure.

Globally, most Asian markets traded in the green, despite continued declines in China’s industrial profits and rising inflation in Tokyo. Back home, Power Mech Projects surged after securing a ₹186 crore order from Jaiprakash Power Ventures.

Key Market Data:

  • BSE Sensex: Up 405.22 points (0.52%) at 78,877.70.
    • Top Gainers: IndusInd Bank (+3.57%), Mahindra & Mahindra (+2.20%), Tata Motors (+2.18%).
    • Top Losers: Zomato (-0.59%), Power Grid (-0.35%), HCL Technologies (-0.33%).
  • CNX Nifty: Up 135.40 points (0.57%) at 23,885.60.
    • Top Gainers: IndusInd Bank (+3.62%), Mahindra & Mahindra (+2.38%), Tata Motors (+2.35%).
    • Top Losers: Bharat Electronics (-0.90%), Hindalco (-0.45%), ONGC (-0.42%).

Sectoral Highlights:

  • Top Gaining Sectors: Auto (+1.41%), Consumer (+0.56%), Healthcare (+0.55%), Bankex (+0.50%), FMCG (+0.31%).
  • Top Losing Sectors: Realty (-0.59%), Oil & Gas (-0.20%), PSU (-0.17%), Metal (-0.16%), Capital Goods (-0.16%).

Policy Updates:

The commerce ministry emphasized plans to bridge the export credit gap through the ECGC’s WT-ECIB scheme, benefiting nearly 1,000 new exporters. Additionally, negotiations on the India-Sri Lanka ETCA have made significant progress, except for specific garment-related goods.

Global Snapshot:

  • Asian Markets: Mostly positive, with gains in Hang Seng, Shanghai Composite, and Nikkei. Declines noted in Jakarta Composite and KOSPI.