The domestic equity benchmarks traded with significant gains in mid-morning trade. The Nifty traded above the 23,950 mark. Financial services shares extended gains for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex jumped 704.43 points or 0.90% to 79,211.49. The Nifty 50 index rallied 217.65 points or 0.92% to 23,960.55.

In the broader market, the S&P BSE Mid-Cap index added 0.03% and the S&P BSE Small-Cap index gained 0.15%.

The market breadth was strong. On the BSE, 2,172 shares rose and 1,576 shares fell. A total of 149 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.”

IPO Update:

The initial public offer (IPO) of Indo Farm Equipment received bids for 68,56,63,833 shares as against 84,70,000 shares on offer, according to stock exchange data at 11:15 IST on 02 January 2024. The issue was subscribed to 80.95 times.

The issue opened for bidding on 31 December 2024 and it will close on 02 January 2024. The price band of the IPO is fixed between Rs 204 and Rs 215 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Financial Services index rose 0.84% to 23,819.20. The index gained 1.07% in two consecutive trading sessions.

Cholamandalam Investment & Finance Company (up 5%), Bajaj Finance (up 3.73%), Bajaj Finserv (up 3.31%), Kotak Mahindra Bank (up 2.34%), Shriram Finance (up 2.01%), SBI Cards & Payment Services (up 0.94%), HDFC Asset Management Company (up 0.87%), SBI Life Insurance Company (up 0.58%), Muthoot Finance (up 0.52%) and HDFC Bank (up 0.49%) advanced.

Stocks in Spotlight:

Maruti Suzuki India rallied 3.07% after the car manufacturer’s total production jumped 30.26% to 157,654 units in December 2024 as against 121,028 units recorded in December 2023.

Sandur Manganese & Iron Ores jumped 3.73% after the company announced the receipt of approval for enhancement of Permissible Annual Production (PAP) limit of iron ore.

Waaree Energies shed 0.73%. The company announced that it has received an order for supply of solar modules for 150 MWp from a renowned customer engaged in the business of owning, developing, and operating renewable power projects in India.

Global Markets:

The Dow Jones index futures were up 140 points, signaling a strong opening for U.S. stocks today.

Asian stocks began the New Year on a cautious note on Thursday after an inauspicious end to an otherwise stellar 2024 for global equity investors.

Singapore's gross domestic product (GDP) rose 0.1% in the three months to December 31, advance government data showed on Thursday. The reading slowed sharply from the 3.2% seen in the prior quarter.

The US market was closed on Wednesday for New Year's Day.