Mumbai: The Indian equity market started the New Year on a flat trajectory as domestic benchmark indices reflected mixed sentiments.
Selling pressure was observed in key sectors, including auto, PSU banks, financial services, pharma, and metals, keeping the overall mood cautious.
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Market Performance: Sensex and Nifty Update
At 9:35 am, the Sensex was trading at 78,054.12, down by 84.89 points or 0.11 percent, while the Nifty was trading at 23,617.55, declining 27.25 points or 0.12 percent. Despite the subdued start, the overall market trend remained positive, with 1,538 stocks trading in green and 621 stocks in red on the National Stock Exchange (NSE).
Market experts noted, “The New Year began on a somber note for the Indian equity market. The near-term trend appears weak with the macro construct dominated by weak GDP and earnings growth.”
Sectoral Insights
Losers:
- Auto
- PSU Banks
- Financial Services
- Pharma
- Metal Sectors
Gainers:
- IT
- FMCG
- Media
- Energy
The Nifty Bank index dropped 46.65 points or 0.09 percent to 50,813.55. Meanwhile, the Nifty Midcap 100 index showed resilience, rising 70.95 points or 0.12 percent to 57,270.40, and the Nifty Smallcap 100 index increased by 62.35 points or 0.33 percent to 18,831.55.
Stock Highlights
In the Sensex pack:
- Top Losers: Axis Bank, ICICI Bank, IndusInd Bank, Tata Steel, SBI, Nestle India, Tata Motors, M&M, and Maruti Suzuki.
- Top Gainers: Sun Pharma, Asian Paints, Bajaj Finserv, L&T, TCS, Tech Mahindra, HCL Tech, and UltraTech Cement.
Also Read | Indian Share Market Opens Lower, Approaches New Year with Caution
Global Market Trends
The Indian market’s performance aligns with global trends, where major indices faced headwinds:
- Dow Jones: Declined 0.07 percent, closing at 42,544.22.
- S&P 500: Fell 0.43 percent, ending at 5,881.60.
- Nasdaq: Dropped 0.90 percent, closing at 19,310.79.
In Asia:
- Positive Performance: Jakarta and Hong Kong.
- Negative Performance: China, Bangkok, Seoul, and Japan.
Macroeconomic Factors and FII-DII Activity
Impact of Strong Dollar and U.S. Bond Yields
The dollar index remains elevated at 108.5, and high U.S. bond yields continue to exert pressure on the market. These factors contribute to Foreign Institutional Investor (FII) selling, which may influence early 2025 trends. Experts suggest that while Domestic Institutional Investor (DII) buying counters FII selling, sentiments currently favor FIIs due to elevated valuations.
FII and DII Statistics
- FII Activity: Sold equities worth Rs 4,645.22 crore on December 31.
- DII Activity: Bought equities worth Rs 4,546.73 crore on the same day.
Expert Advice for Investors
Market analysts recommend a cautious approach, emphasizing the need to monitor macroeconomic data closely. Potentially market-moving events and data releases could shape the trajectory of the Indian share market in the coming weeks.
A Watchful Start to 2025
The Indian share market’s flat opening in 2025 reflects underlying caution amid sectoral weaknesses and macroeconomic challenges. While select sectors show resilience, the broader market outlook remains tied to global trends and domestic policy developments. Investors are advised to tread carefully and stay informed about key indicators influencing the market’s direction.