SSPL WEALTH PVT LTD

Mid - Session

Market behaviours during the course of the trading session.

Barometers nudge higher; breadth positive

20-Jan-25 09:37 Hrs IST

The domestic equity benchmarks traded with moderate gains in early trade, supported by positive results from Wipro and Kotak Mahindra Bank, as well as favorable global market cues. The Nifty traded above the 23,200 level after hitting the day's low of 23,189.70 in early trade. Private bank, bank and media shares advanced while auto, healthcare and pharma shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 125.93 points or 0.16% to 76,732.26. The Nifty 50 index added 16.80 points or 0.07% to 23,220.

In the broader market, the S&P BSE Mid-Cap index shed 0.26% and the S&P BSE Small-Cap index gained 0.07%.

The market breadth was positive. On the BSE, 1,846 shares rose and 1,288 shares fell. A total of 162 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,318.06 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,572.88 crore in the Indian equity market on 17 January 2025, provisional data showed.

Economy:

India's foreign exchange (forex) reserves declined $8.714 billion to $625.871 billion in the week ended January 10, according to the latest RBI data.

For the week ended January 10, foreign currency assets, a major component of the reserves, decreased by $9.469 billion to $536.011 billion, the data released on Friday showed.

Gold reserves increased by $792 million to $67.883 billion during the week. The special drawing rights (SDRs) were down by $33 million to $17.781 billion, the RBI said.

India's reserve position with the IMF was down by $4 million at $4.195 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Kotak Mahindra Bank surged 8.93% after the private lender's net profit jumped 9.97% to Rs 3,304.80 crore on 13.86% rise in total income to Rs 16,050.38 crore in Q3 FY25 over Q3 FY24.

Wipro jumped 7.56% after the company's consolidated net profit grew 4.51% to Rs 3,353.8 crore in Q3 FY25 as against Rs 3,208.8 crore posted in Q2 FY25. However, revenue from operations increased marginally to Rs 22,318.8 crore in the December 2024 quarter as against Rs 22,301.6 crore reported in the preceding quarter same year. The company's board has declared an interim dividend of Rs 6 per equity share.

Jio Financial Services slipped 2.17%. The company's consolidated net profit marginally rose 0.32% to Rs 294.78 crore in Q3 FY25 as compared with Rs 293.82 crore in Q3 FY24. Total income jumped 8.34% to Rs 448.89 crore in Q3 FY25 as compared with Rs 414.33 crore in the corresponding quarter last year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.71% to 6.890 as compared with previous close 6.774.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.4900, compared with its close of 86.6025 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement shed 0.16% to Rs 78,893.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.26% to 109.06.

The United States 10-year bond yield rose 0.26% to 4.623.

In the commodities market, Brent crude for March 2025 settlement lost 11 cents or 0.14% to $80.68 a barrel.

Global Markets:

Most Asian stocks rose on Monday, buoyed by hopes that U.S. President-elect Donald Trump may adopt a less aggressive stance toward China than previously feared when he assumes office later in the day.

Regional markets took cues from Wall Street's strong performance on Friday. U.S. stocks rallied as robust bank earnings and expectations of interest rate cuts fueled investor optimism. The Dow Jones Industrial Average climbed 0.78%, hitting a new one-month high, while the S&P 500 rose 1.00%, and the NASDAQ Composite added 1.51%. Key performers included NVIDIA Corporation (+3.10%), Amazon.com Inc (+2.39%), and Goldman Sachs Group Inc (+2.11%).

Investor sentiment improved further after Trump avoided mentioning trade tariffs during a victory lap rally in Washington on Sunday. However, he reiterated plans to crack down on immigration and reduce government oversight of domestic companies.

Despite the optimism, uncertainty lingers. Fox News Digital reported that Trump is expected to sign a record number of executive orders upon taking office on Monday. While details remain unclear, some orders could potentially include increased trade tariffs against China.

Previously, Trump had vowed to impose tariffs of up to 60% on Chinese imports and suggested similar measures targeting Mexico and Canada. Such policies could disrupt global trade and pose challenges for export-driven economies.

Meanwhile, the People's Bank of China (PBOC) left its benchmark loan prime rate unchanged on Monday, as widely anticipated. Beijing appears to be holding off on new stimulus measures while awaiting greater clarity on Trump's trade policies.

Lastly, U.S. markets will remain closed on Monday in observance of Martin Luther King, Jr. Day.