Market Commentary     02-Jan-25
Mid-Session
Sensex, Nifty surge over 1%; consumer durables shares advance
The headline equity benchmarks traded with robust gains in mid-afternoon trade. The Nifty climbed above the 24,150 mark. Consumer durables shares witnessed buying demand for the fourth consecutive trading session. Trading was volatile due to the weekly F&O series expiry today.

At 13:27 IST, the barometer index, the S&P BSE Sensex, surged 1,312.15 points or 1.67% to 79,825.61. The Nifty 50 index jumped 413.90 points or 1.74% to 24,156.80.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.68% and the S&P BSE Small-Cap index added 0.52%.

The market breadth was positive. On the BSE, 2,325 shares rose and 1,609 shares fell. A total of 120 shares were unchanged.

Economy:

In December 2024, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 56.4, marking a 12-month low and indicating a slower improvement in operating conditions. The headline figure declined slightly from 56.5 in November but remained above the long-run average of 54.1, signaling a robust rate of growth.

Looking to 2025, Indian manufacturers were confident of a rise in output. Optimism reflected advertising, investment and expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures.

Ines Lam, Economist at HSBC, said, “India’s manufacturing activity ended a strong 2024 with a soft note amidst more signs of a slowing trend, albeit moderate, in the industrial sector. The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production. That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July. The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures.”

Buzzing Index:

The Nifty Consumer Durables index gained 1.24% to 42,651.05. The index rallied 2.68% in four consecutive trading sessions.

Titan Company (up 3.46%), Bata India (up 2.26%), Century Plyboards (India) (up 2.17%), Whirlpool of India (up 1.51%), Dixon Technologies (India) (up 1.32%), Havells India (up 0.8%), Voltas (up 0.6%), Cera Sanitaryware (up 0.49%) advanced.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.17% to 6.902 as compared with the previous close of 6.890.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.7400, compared with its close of 85.6450 during the previous trading session.

MCX Gold futures for the 5 February 2025 settlement added 0.31% to Rs 77,128.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.29% to 108.44.

The United States 10-year bond yield declined 0.63% to 4.550.

In the commodities market, Brent crude for March 2025 settlement added 11 cents, or 0.15% to $74.75 a barrel.

Stocks in Spotlight:

TVS Motor Company rallied 3.32% after the company’s total sales jumped 7% to 321,687 units in December 2024 as against 301,898 units in December 2023.

UGRO Capital added 1.02% after the company informed that its board has approved the issuance of non-convertible debentures (NCDs) aggregating upto Rs 100 crore with an option to retain oversubscription upto Rs 50 crore (green shoe option).

Previous News
  Ugro Capital approves issuance of NCDs up to Rs 265 cr
 ( Corporate News - 10-Feb-25   12:56 )
  TVS Motor appoints Gaurav Gupta as President – India 2W business
 ( Corporate News - 03-Feb-25   19:30 )
  TVS Motor Company update on acquisition of minor stake in Killwatt GmbH
 ( Corporate News - 03-Feb-25   19:16 )
  TVS Motor Company Ltd rises for third straight session
 ( Hot Pursuit - 03-Feb-25   13:05 )
  TVS Motor Company records 17% sales growth in Jan'25
 ( Corporate News - 01-Feb-25   15:01 )
  TVS Motor Company
 ( Results - Analysis 29-Jan-25   09:22 )
  TVS Motor jumps after PAT rises 4% YoY to Rs 618 crore in Q3 FY25
 ( Hot Pursuit - 28-Jan-25   16:01 )
  TVS Motor Company consolidated net profit rises 18.23% in the December 2024 quarter
 ( Results - Announcements 28-Jan-25   14:01 )
  Ugro Capital standalone net profit rises 15.31% in the December 2024 quarter
 ( Results - Announcements 25-Jan-25   07:35 )
  Ugro Capital approves NCD issuance of up to Rs 75 cr
 ( Corporate News - 23-Jan-25   19:29 )
  Volumes jump at TVS Motor Company Ltd counter
 ( Hot Pursuit - 21-Jan-25   11:00 )
Other Stories
  Sensex plummet 1,120 pts; consumer durables shares slump
  11-Feb-25   14:36
  Sensex, Nifty plunges over 1%; European mrkt advance
  11-Feb-25   13:39
  Indices trade lower; PSU bank shares slide for 4th day
  11-Feb-25   12:32
  Broader mrkt underperforms; media shares decline for 4th day
  11-Feb-25   11:33
  Nifty slides below 23,300; realty shares tumble
  11-Feb-25   10:36
  Indices nudge lower; breadth weak
  11-Feb-25   09:34
  Barometers trade with deep cuts; consumer durables shares slump
  10-Feb-25   14:36
  Market trade near day’s low; European mrkt advance
  10-Feb-25   13:38
  Indices trade with major losses; media shares slides for 3rd day
  10-Feb-25   12:35
  Broader mrkt underperforms; realty shares tumble
  10-Feb-25   11:36
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