Key economic indicators
Actual on 16:00 on January 07
World economic indicators
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Stocks
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Change
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|---|---|
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🇮🇳 Nifty 50
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+ 0.32%
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🇮🇳 Sensex
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+ 0.21%
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|
🇮🇳 India VIX
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– 6.31%
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|
🇺🇸 S&P 500
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- 0.4%
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🇺🇸 Nasdaq
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- 1.1%
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|
🇺🇸 Dow Jones
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+ 0.06%
|
|
🇪🇺 Euro Stoxx
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+ 0.58%
|
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🇨🇳 China A50
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+ 0.25%
|
|
🇨🇳 DJ Shanghai
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+ 0.91%
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🇬🇧 FTSE 100
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- 0.05%
|
|
🇯🇵 Nikkei 225
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+ 2.14%
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🇮🇩 IDX Composite
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+ 0.04%
|
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🇸🇦 Tadawul All Share
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+ 0.07%
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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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Tata Motors
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+ 2.25%
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Reliance Industries
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+ 1.86%
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Indusind Bank
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+ 1.46%
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ICICI Bank
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+ 1.28%
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|
Asian Paints
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Asian Paints
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Top Losers on Indian Stock Market
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Stocks
|
Change
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|---|---|
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HCL Technologies
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- 1.73%
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Tata Consultancy
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- 1.62%
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|
Tech Mahindra
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- 0.94%
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Maruti Suzuki India
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- 0.37%
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|
Kotak Mahindra Bank
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- 0.92%
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News
Energy Boost Powers a Market Rebound
Tuesday brought some relief to Indian markets after Monday’s bruising session. The Nifty 50 nudged up 0.3% to 23,686.1 points, while the BSE Sensex ticked 0.15% higher to 78,075. Energy stocks took the lead, lending some much-needed momentum to an otherwise cautious trading day. Monday’s slump—fueled by earnings jitters, human metapneumovirus (HMPV) fears, and persistent foreign outflows—was the steepest since early October 2024. But government reassurances downplaying HMPV risks seem to have calmed nerves. With quarterly earnings kicking off Thursday, analysts are betting these updates will set the tone for near-term market moves. 11 of the 13 major sectors closed in the green. The oil and gas index stole the spotlight, surging 1.5%. Oil and Natural Gas Corp (ONGC) surged 3.5%, basking in CLSA’s upgrade to “high conviction outperform.” Meanwhile, Bharat Petroleum Corporation gained 1.5%, while GAIL and Indraprastha Gas climbed 2.3% and 1%, respectively, following BPCL’s decision to list Maharashtra Natural Gas (MNGL).
MobiKwik’s Market Debut Sparks a Surge
MobiKwik shares stole the spotlight on Tuesday, skyrocketing 14% to touch ₹638 after the company revealed its first quarterly earnings post-IPO. This surge caps off an impressive debut—just weeks ago, MobiKwik listed at ₹442.25 on the BSE, a staggering 58.51% premium over its IPO price of ₹279. Today, the stock sits a hefty 129% above its issue price, a testament to the market’s confidence. MobiKwik posted a net loss of ₹3.5 crore for the September 2024 quarter, a stark drop from the ₹5.2 crore profit it enjoyed a year earlier. A calculated move, according to MobiKwik, as the company doubles down on investments to fuel its next growth phase. With a vast ecosystem spanning 161 million users and 4.3 million merchants, MobiKwik isn’t just a wallet—it’s an entire financial hub. From utility payments to retail shopping, the platform has carved out a hefty 23.11% market share in India’s PPI wallet segment, solidifying its dominance in digital payments. Funds raised being funneled into scaling services, enhancing AI capabilities, and expanding payment infrastructure. MobiKwik is playing the long game, and while short-term losses may sting, its growth trajectory looks primed for more fireworks.
Rupee Gains as Trump Denies Trade Tariff Speculations
The Indian rupee rebounded in early trading on Tuesday, buoyed by U.S. President-elect Donald Trump’s denial of a report suggesting his trade tariffs might not be as stringent as previously feared. By 10:10 a.m. IST, the rupee had strengthened to 85.6750 against the U.S. dollar, recovering from its record low of 85.84 hit on Monday. The Washington Post had reported that Trump’s aides were contemplating tariffs targeting sectors critical to national or economic security. Trump’s denial of this report provided support for the dollar, helping it recover some ground, although it still dipped about 1% against major global peers. The dollar index, which tracks the greenback against a basket of currencies, settled at 108.2, while Asian currencies, including the rupee, logged modest gains. Domestically, the rupee’s recovery was supported by dollar sales from at least two large foreign banks, likely acting on behalf of custodial clients, according to a state-run bank trader. Meanwhile, benchmark Indian equity indexes were back in the green, recovering from the previous session’s slump of over 1.5%.
ITI Takes a Tumble After Price Surge Triggers Exchange Queries
After a meteoric rise that turned heads across the market, ITI shares came crashing down, plunging 10% on January 7 to hit their lower circuit. This sharp drop came a day after the BSE and NSE demanded clarification on the stock’s dramatic movements, which had seen it soar over 43% in just two sessions. Opening strong at â‚ą572.40 on the BSE and â‚ą575.15 on the NSE, the stock quickly spiraled downward, hitting its lower price bands of â‚ą491.25 and â‚ą489.95, respectively. This dramatic shift follows an astounding rally: ITI shares had climbed 19% on Monday and 20% the previous Friday, setting the market abuzz. The exchanges’ inquiry into these abnormal movements highlights their efforts to ensure transparency and protect investors. ITI acknowledged the query in a filing but has yet to provide a response. What’s driving the rollercoaster? ITI, a PSU under the Department of Telecommunications, has been a favorite among investors lately, with its stock climbing over 75% in the past year and skyrocketing 180% since hitting a 52-week low of â‚ą210.20 in October. Strong financials and government-backed infrastructure initiatives have fueled this impressive performance.
HMPV Scare Shakes Airline and Hospitality Stocks
The detection of Human Metapneumovirus (HMPV) cases in India sent ripples across the stock market on Monday, triggering a nearly 5% crash in airline and hotel stocks. By Tuesday morning, some recovery was underway. At 10:24 a.m. IST, InterGlobe Aviation shares rose 1.28% to ₹4319.6, while SpiceJet inched up 1.47% to ₹53.8. TAJGVK Hotels & Resorts Limited gained 2.42% to ₹432.05, and Indian Hotels Company Limited rebounded 2.95% to ₹869.2. The broader market wasn’t immune to the HMPV-triggered jitters. The Ministry of Health confirmed five HMPV cases as of Monday evening, including two in Karnataka, two in Chennai, and one in Ahmedabad. Union Health Minister J.P. Nadda assured the public that the government is monitoring the situation closely. He added that the Health Ministry, ICMR, and the National Centre for Disease Control are keeping tabs on the HMPV outbreaks in China and neighboring countries. For now, the absence of travel restrictions or guidelines is helping contain panic, but markets remain on edge, with investors closely watching for further developments around the HMPV threat.
Paras Defence Sees Major Boost After Good News
Paras Defence and Space Technologies saw its share price skyrocket by 10% on the morning of January 7, following the announcement that the company had been granted a lifetime license under the Arms Act, 1959. This license gives Paras Defence the green light to produce modernised, enhanced MK-46 and MK-48 Belt-fed Light Machine Guns (LMGs), with an impressive production target of 6,000 units annually. This move has the potential to significantly boost the company’s manufacturing capacity. The news caused a surge in the stock, pushing it to ₹1,066.50 per share, hitting the upper price limit. Prior to the announcement, the stock had opened at ₹960.65, slightly below its previous close of ₹969.55. By 10:05 AM, Paras Defence was up 6.8% at ₹1,035.30, bouncing back from its earlier dip. Despite the positive price jump today, in the past month, the stock has faced an 8% decline and a 33% drop over the last six months. However, looking at the longer term, it’s up 32% over the past year.
Indo Farm Equipment Debut Sees Mixed Start but Gains Momentum
Indo Farm Equipment’s IPO debut may have missed sky-high market expectations, but it didn’t disappoint. Opening at â‚ą256 on the NSE and â‚ą258.40 on the BSE—about a 19% premium over its IPO price—the stock quickly gained steam. Within minutes of its listing, the share price surged nearly 10%, hitting an intraday high of â‚ą287 on the NSE and â‚ą286.90 on the BSE. Market watchers attribute the muted initial performance to broader concerns, including reports of human metapneumovirus (HMPV) cases in India, which triggered some caution among investors. But the early jitters didn’t stop the stock from benefiting from a market rally, as traders swooped in to capitalize on the strong debut. Analysts have mixed views about Indo Farm Equipment’s valuation and future trajectory. The market buzz around Indo Farm Equipment isn’t just about its numbers—it’s also about timing. Concerns over HMPV cases in India and respiratory virus outbreaks globally have added a layer of uncertainty. With reports of cases in Karnataka and Gujarat, investors remain cautious, even as the broader market shows resilience. For now, Indo Farm Equipment has managed to secure a strong footing. Whether it can sustain the momentum will depend on its ability to deliver on growth promises amid an ever-evolving market landscape.
Overview
Indian markets found some footing today, bouncing back after two days of losses. The Nifty closed at 23,616.05, gaining 0.39%, and the Sensex wrapped up at 77,964.99, up 0.30%. Both indices saw fluctuations during the session, reaching highs of 23,795.2 and 78,452.74, but they ended on a positive note thanks to some encouraging global cues and a lack of major worries over the HMPV virus. Big names like Reliance Industries, ICICI Bank, and HDFC Bank helped lift the indices, although a bit of profit booking took some steam out of the rally as the day wore on.
Even as the frontline indices showed a bit of a fade towards the end, the broader market performed better. The Nifty Smallcap 100 surged 1.35%, while the Nifty Midcap 100 was up 0.89%. With foreign institutional investors still largely on the selling side, the market managed to recover thanks to sectoral rallies, especially in Oil & Gas, which led the way with a 1.64% rise. Other sectors like Media, Energy, and Metals also made solid gains, providing support for the overall market mood.
While today’s recovery was welcomed, it came amid caution. The market is still processing recent losses, with investors eyeing the upcoming GDP estimates for FY25. Growth expectations have been toned down by the RBI, and that has added a layer of uncertainty moving forward.
On the commodities front, gold prices were unchanged, holding steady after last week’s moves. Oil prices dipped a bit due to technical correction and concerns about oversupply. WTI crude dropped by 0.45% to $73.23 per barrel, although the market still looks positive with predictions of continued support from fiscal measures aimed at boosting China’s economy.
Today’s market action shows some resilience, but the road ahead remains uncertain. How the data on GDP and global conditions play out in the next few days will likely steer the direction for the market. For now, investors seem to be taking a cautious but hopeful stance.