Key economic indicators
Actual on 16:00 on December 26
World economic indicators
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Stocks
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Change
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|---|---|
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🇮🇳 Nifty
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+ 0.14%
|
|
🇮🇳 Sensex
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+ 0.06%
|
|
🇮🇳 India VIX
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+ 6.47%
|
|
🇺🇸 S&P 500
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- 0.2%
|
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🇺🇸 Nasdaq
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– 0.2%
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|
🇺🇸 Dow Jones
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– 0.15%
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|
🇪🇺 Euro Stoxx
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– 0.19%
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|
🇨🇳 China A50
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– 0.4%
|
|
🇨🇳 DJ Shanghai
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+ 0.25%
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🇬🇧 FTSE 100
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+ 0.42%
|
|
🇯🇵 Nikkei 225
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+ 1.39%
|
|
🇮🇩 IDX Composite
|
- 0.43%
|
|
🇸🇦 Tadawul All Share
|
- 0.28%
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Top Gainers on Indian Stock Market
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Stocks
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Change
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|---|---|
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Mahindra & Mahindra
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+ 1.57%
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Bharti Airtel
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+ 0.97%
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Sun Pharmaceutical Industries
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+ 1.31%
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Bharti Airtel
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+ 0.97%
|
|
Tata Motors
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+ 0.6%
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Top Losers on Indian Stock Market
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Stocks
|
Change
|
|---|---|
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Titan Company
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- 1.05%
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|
Asian Paints
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- 1.00%
|
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Nestle India
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- 0.75%
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Reliance Industries
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- 0.56%
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Tech Mahindra
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- 0.44%
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News
Sumitomo Mitsui Makes Record â‚ą3,000 Crore Bet on India Growth
Japan’s Sumitomo Mitsui Financial Group (SMFG) has doubled down on its Indian ambitions, injecting â‚ą3,000 crore into SMFG India Credit Co Ltd (SMICC) via a rights issue. This latest boost also earmarks â‚ą300 crore for SMICC’s home finance arm, SMFG Grihashakti, as part of its push to expand operations. This isn’t SMFG’s first show of confidence this year—back in April, it had already infused â‚ą1,300 crore into SMICC. With this fresh round, 2024’s total capital infusion now stands at a record-breaking â‚ą4,300 crore, making it SMICC’s highest-ever annual fund raise since its inception. The timing aligns with SMICC’s strong momentum, as its Assets Under Management (AUM) hit â‚ą49,800 crore as of September 2024, marking a solid 25.1% year-on-year growth. The added funds are expected to bolster the company’s Capital Adequacy Ratio (CAR), further reinforcing its financial resilience. For SMFG, this move is more than just a balance-sheet play—it’s a commitment to deepening financial inclusion in India and riding the wave of the nation’s growing credit appetite. With its focus firmly set on growth, SMICC is shaping up as a key player in India’s financial services landscape.
Ola Electric’s Stock Surges
Ola Electric’s shares charged up by 5% in morning trading on December 26 after the company unveiled a game-changing expansion to 4,000 stores nationwide. With 3,200 new locations opening alongside service centers, this fourfold growth cements Ola as India’s frontrunner in electric vehicle (EV) retail. Ola didn’t stop there. The company also opened beta registrations for its MoveOS 5, a software upgrade packed with features like group navigation, live location sharing, and a road trip mode powered by Ola Maps. On the product side, the recent launch of the Gig and S1 Z scooter range, starting at just ₹39,999, signals Ola’s intent to dominate across urban, semi-urban, and rural markets. With removable batteries and versatile designs, these scooters aim to meet both personal and commercial needs. Reservations are already open at ₹499, with deliveries slated for April and May 2025. For investors, this aggressive expansion and product diversification make Ola Electric a stock to watch in India’s fast-evolving EV landscape.
Mazagon Dock in Focus as Stock Split Nears
All eyes are on Mazagon Dock Shipbuilders today, with the company’s shares poised for action ahead of its 1:2 stock split. December 27 is set as both the record and ex-date, making today the final chance for investors to purchase shares and qualify for the benefit. Each existing share with a face value of â‚ą10 will be split into two shares worth â‚ą5 each. The move aims to increase liquidity and make the stock more accessible to a broader base of investors. In its exchange filing, the company reiterated compliance with SEBI regulations and confirmed the split, emphasizing the Friday record date. Thanks to the T+1 settlement system, the timelines are tight. Investors who purchase shares today will have them settled by tomorrow, ensuring eligibility. However, buying on the ex-date means missing out, as the settlement won’t be completed in time. Mazagon Dock has been a market standout, delivering a stellar 120% return over the past year and 104.35% on a year-to-date basis. These numbers underline the stock’s strong momentum, and the split could serve as a catalyst for further interest, particularly from retail investors.
India Eyes 6.5% Growth Amid Global Challenges
India’s economy is charting a steady course, with growth projected at around 6.5% for fiscal 2024/25, as per the government’s announcement on Thursday. This figure leans toward the lower end of its earlier estimate of 6.5%-7%, reflecting caution amidst global uncertainties. The finance ministry’s November report painted a mixed picture. On one hand, there’s optimism: robust rural demand and a surge in urban spending during October and November have brightened the outlook for the December quarter. On the other, growth for July to September lagged expectations, thanks to weaker-than-hoped performance in manufacturing and consumption. Despite the hiccups, India remains confident about hitting its 6.5%-7% target—still an enviable pace in today’s economic climate. The ministry predicts it’ll outshine the first six months. For now, India’s growth story balances resilience with caution. While global headwinds loom, the country’s fundamentals suggest it’s still navigating turbulent waters with skill.
NTPC Green Energy Drops 6% as Lock-In Period for Anchor Investors Ends
NTPC Green Energy’s shares faced a sharp dip of nearly 6% in early Thursday trading, dropping to â‚ą125.20 on the BSE. The sell-off comes as the one-month lock-in period for anchor investors expired, unlocking 1.83 crore shares, representing a 2% stake in the company, for trading. Despite this unlock, it’s important to note that the expiration of a lock-in period simply allows trading eligibility and doesn’t imply that all shares will be sold immediately. NTPC Green Energy, listed on November 29, saw a modest market debut at â‚ą111.5 on the NSE—just 3.2% above its issue price of â‚ą108. On the BSE, it began trading at â‚ą111.6, marking a 3.33% premium. Since then, the renewable energy stock has risen over 23% from its issue price and nearly 19% from its listing price. The IPO, held between November 19-22, raised â‚ą10,000 crore via fresh equity shares at a price band of â‚ą102-108 per share. Preceding this, the company secured â‚ą3,960 crore from anchor investors. The offering drew strong interest, with 2.55 times subscription and bids for 142.65 crore shares against 56 crore on offer.
Sagility India Shares Surge 5%
Sagility India shares climbed another 5% on Thursday, hitting a new peak at â‚ą51.35. This rally marks the stock’s eighth consecutive day of gains, pushing its monthly growth to an impressive 61%, even as the Sensex has dipped by nearly 2% during the same period. Sagility is well-positioned to capitalize on long-term trends, such as the growing trend of outsourcing healthcare services in the U.S. As providers seek cost reductions and efficiency gains, Sagility’s expertise in areas such as data analytics and mining has made it a critical partner. JPMorgan highlighted the firm’s deep domain knowledge, robust client relationships, and structural EBIT margins, which provide scalability and profitability. Adding to the optimism, Jefferies also initiated coverage on Sagility last week, issuing a “buy” rating with a target price of â‚ą52. Jefferies pointed to the company’s potential for sustained double-digit revenue growth, bolstered by its niche expertise and ability to capture high-margin opportunities.
Identical Brains Studios’ Stellar Debut
Identical Brains Studios, a rising star in the visual effects (VFX) world, made a remarkable entrance on the NSE SME platform this Thursday. The stock opened at Rs 95, a striking 76% premium over its IPO issue price of Rs 54—proof that investors are clearly excited about the company’s potential. According to the Red Herring Prospectus (RHP), Identical Brains has outlined clear plans for its IPO funds. It will use Rs 51.78 lakh for office and studio renovations in Andheri, Rs 2.86 crore to fund a Colour Grading Digital Intermediate (DI) and Sound Studio, and Rs 75.56 lakh for a new office in Lucknow. Additionally, Rs 3.43 crore will go towards upgrading computer systems, storage, and software, while Rs 7.04 crore will cover working capital needs. Identical Brains’ earnings paint a picture of a company navigating some growth challenges. In comparison, its FY 2024 performance saw revenues of Rs 20.08 crore and a higher profit of Rs 5.34 crore. While the figures show some volatility, the overall market sentiment and the studio’s rich content pipeline suggest there’s still plenty of growth potential.
India Mulls Tax Break for Middle Class
The Indian government is toying with a plan to ease the tax burden on the middle class in the upcoming February budget. Word on the street is that it could reduce income tax for individuals earning up to 1.5 million rupees ($17,590) annually. To provide some much-needed financial relief and boost consumption as the economy shows signs of slowing down. This move could be a game-changer for millions of taxpayers, particularly those living in cities, where the cost of living has been steadily rising. But there’s a catch: the tax cut would only apply to those who opt for the 2020 tax system, which does away with certain exemptions, like housing rental deductions. In this system, income ranging from 300,000 to 1.5 million rupees is taxed at rates between 5% and 20%, with any amount exceeding that subject to a flat 30% tax. It’s a simpler but less forgiving framework than the older one, which allows for more deductions but at higher tax rates. India’s income tax revenue largely comes from the wealthier few, particularly those earning over 10 million rupees a year, who pay the highest tax rate of 30%. But with growth slowing—India’s economy expanded at its slowest pace in seven quarters between July and September—and inflation squeezing urban consumers, the government may see this as a way to inject some life into the economy.
Panacea Biotec: A Boost from UNICEF’s Polio Vaccine Order
Panacea Biotec shares got a healthy boost, climbing nearly 5% to ₹456 after scoring a ₹127 crore (US$ 14.95 million) order from UNICEF for 115 million doses of its bivalent oral polio vaccine (bOPV). Set for delivery in 2025, these vaccines will support immunization efforts across Africa and Asia. This announcement comes as a much-needed win for the company, which recently posted a ₹4.8 crore profit for Q2 FY2024 after three straight quarters of red ink. Revenue jumped 27.18% quarter-on-quarter—the biggest leap in three years—showcasing a strong rebound in operations. Zooming out, Panacea has been a long-term performer, delivering a stellar 126.6% return over three years, outpacing the Nifty Smallcap 100’s 72.66% rise. With a market cap of ₹2,653.69 crore and nearly four decades in the pharma game, this small-cap player continues to punch above its weight. UNICEF’s nod signals more than just a business win; it’s a vote of confidence in Panacea’s capabilities on the global stage. Investors seem to agree, as the stock reflects optimism for what’s ahead.
India’s Renewable Energy Revolution—What’s Next?
India’s renewable energy story hit a major milestone in 2024, with total RE capacity soaring to 205.5 GW by November. That’s a huge leap toward the 500 GW non-fossil fuel target. A mix of solar and wind power growth, storage solutions, and domestic production ramp-ups. But as demand surges, grid integration has become a big headache, with variable energy making grid management a complex game of balancing acts. Solar continues to shine as the superstar, hitting 94.17 GW this year, while rooftop solar efficiency jumped from 15% to over 23%. Advanced storage tech dropped costs to $100/kWh, making 24/7 renewable power a reality. Yet, despite these strides, electricity distribution companies (DISCOMs) remain a financial sore spot. Debt is stacking up, reaching ₹7.14 lakh crore by FY23, and likely climbing higher this year. Investment is following suit, with renewable energy project finance surging by 63% to $3.66 billion in 2024, and solar alone grabbing nearly half the action. Battery Energy Storage Systems (BESS) are expected to boom in 2025, with prices dropping 65% from 2022 levels. With private and public players stepping up, the sector is gearing for another record-breaking year.
Overview
The Indian stock market had a rather uneventful Thursday, closing almost flat as the year-end lull set in. The Nifty 50 eked out a modest 0.1% gain, ending the day at 23,750.2, while the BSE Sensex was nearly unchanged at 78,472.48. Both benchmarks had shown some early promise, gaining around 0.5% in the morning, only to lose momentum as the day wore on.
This marks the fourth consecutive session under that level, signaling some caution among traders. The previous week’s setback was largely driven by the Fed’s outlook on rate cuts and persistent foreign selling. Now, with trading volumes tapering off as we near the year-end, analysts are bracing for a quieter few weeks. Directional cues for the broader market are expected only after the corporate earnings season kicks off in mid-January.
Among the individual stock movements, there were some notable highlights. Panacea Biotech saw a strong 3.9% jump after securing a hefty $14.95 million order from UNICEF for polio vaccine supplies. On the flip side, NTPC Green Energy slumped 5.25% as the lock-in period for 50% of its anchor investors’ shares ended, adding selling pressure. Meanwhile, Epack Durable gained 4% after ICICI Securities initiated coverage with a “buy” rating, highlighting the company’s growth prospects in air conditioners.
On the currency front, the Indian rupee hit a fresh record low for the third consecutive session, closing at 85.2625 against the dollar. Importers, who were active in their month-end dollar demand, helped push the rupee down, despite relatively low trading volumes. This marks an ongoing slide, as the rupee’s fall from 84 to 85 took just two months, a sharp contrast to the slower depreciation over the previous year.
In terms of gold and silver, Delhi saw 10 grams of 24-carat gold priced at Rs 77,513, while 1 kg of silver stood at Rs 94,400. As the market heads into the final stretch of the year, it’s clear that traders are holding their breath, with little in the way of fresh triggers until the corporate earnings season gets underway.