Indian equity markets began Thursday on a positive note, buoyed by upbeat trends on Wall Street and firm trading in Asian markets. This optimism followed U.S. data indicating a slowdown in core consumer price growth, which eased concerns about the Federal Reserve's interest rate trajectory. Early trades saw Sensex and Nifty gaining ground, supported by buying activity in Realty, PSU, and Power sectors.
Market sentiment was also bolstered by a report from industry body PHDCCI, projecting India to become the fourth-largest economy by 2026, surpassing Japan, with GDP growth estimated at 6.8% for FY24 and 7.7% for FY26.
On the global front, Asian markets traded in the green, with Japan's Bank of Japan reporting a 0.3% monthly rise in producer prices for December, slightly below expectations of 0.4%.
Sectoral Highlights and Stock Performances
At 76,998.29, the Sensex climbed 274.21 points (0.36%), trading within a range of 76,984.39 to 77,319.50. Advancing stocks outnumbered declining ones 21 to 9. Broader indices also performed well, with the BSE Mid Cap index up 1.43% and the Small Cap index rising 1.62%.
Among sectoral indices, Realty led with a 2.31% gain, followed by PSU (1.90%), Power (1.69%), Utilities (1.61%), and Industrials (1.58%). FMCG was the sole laggard, down 0.28%.
Top gainers on the Sensex included Adani Ports & SEZ (3.94%), IndusInd Bank (2.35%), Zomato (2.27%), SBI (2.16%), and Ultratech Cement (1.76%). On the losing side, Hindustan Unilever (1.17%), Nestle (0.91%), TCS (0.88%), HCL Technologies (0.81%), and ITC (0.54%) witnessed declines.
Key Developments and Projections
Stocks of energy companies attracted attention as CRISIL projected India's investment in green infrastructure to quintuple to RS 31 trillion over the next five years. Additionally, RVNL saw a significant jump after securing a Letter of Acceptance from BSNL for developing a middle-mile network under the DBOM model.
Meanwhile, Moody's reported that India’s fiscal conditions would continue to constrain its credit strength in 2025. While tensions in US-China relations could potentially benefit India, Moody's noted challenges such as elevated debt levels and fiscal risks due to domestic politics and geopolitical factors.
Global and Nifty Update
The CNX Nifty stood at 23,316.60, up 103.40 points (0.45%), with 37 stocks advancing and 13 declining. Top gainers included HDFC Life Insurance (10.00%), SBI Life Insurance (4.18%), Adani Ports & SEZ (3.88%), Shriram Finance (3.54%), and Adani Enterprises (3.06%). Tata Consumer Products (1.86%), Hindustan Unilever (1.12%), TCS (0.92%), Nestle (0.89%), and Britannia Industries (0.86%) were the top losers.
All major Asian markets traded higher, with Taiwan Weighted surging 2.32%, Hang Seng gaining 0.82%, and Nikkei 225 up by 0.23%. Shanghai Composite, KOSPI, and Jakarta Composite also registered gains.
This broad-based optimism signals strong investor confidence amid easing inflation concerns and robust domestic demand.