Key economic indicators
Actual on 16:00 on December 30
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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- 0.64%
|
|
🇮🇳 Sensex
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- 0.63%
|
|
🇮🇳 India VIX
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+ 5.53%
|
|
🇺🇸 S&P 500
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- 1.35%
|
|
🇺🇸 Nasdaq
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- 1.5%
|
|
🇺🇸 Dow Jones
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+ 1.3%
|
|
🇪🇺 Euro Stoxx
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- 0.64%
|
|
🇨🇳 China A50
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+ 0.5%
|
|
🇨🇳 DJ Shanghai
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+ 0.18%
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🇬🇧 FTSE 100
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- 0.33%
|
|
🇯🇵 Nikkei 225
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- 0.96%
|
|
🇮🇩 IDX Composite
|
+ 0.62%
|
|
🇸🇦 Tadawul All Share
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+ 0.91%
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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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HCL Technologies
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+ 2.19%
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Tech Mahindra
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+ 2.14%
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Sun Pharmaceutical Industries
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+ 1.46%
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Indusind Bank
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+ 0.94%
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|
Asian Paints
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+ 0.69%
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Top Losers on Indian Stock Market
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Stocks
|
Change
|
|---|---|
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Tata Motors
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- 2.38%
|
|
Wipro
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– 1.73%
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|
Titan Company
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– 1.7%
|
|
Mahindra & Mahindra
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– 1.65%
|
|
State Bank of India
|
– 1.56%
|
News
Coforge and Cigniti Join Forces
The merger news had investors buzzing, but the reactions couldn’t have been more different. Cigniti Technologies took a sharp nosedive, tumbling nearly 8% in early trades, while Coforge saw a modest lift, inching up by 0.7%. Clearly, the market has its favorites when it comes to shake-ups. The driving force? Saturday’s big announcement: Coforge and Cigniti are officially merging, with a share swap ratio of one Coforge share for every five shares of Cigniti. Coforge already owns a 54% stake in Cigniti, snapped up earlier this year at ₹1,415 per share. But now, they’re going all in, aiming to create a powerhouse across retail, tech, and healthcare verticals. The merger also positions Coforge to tighten its grip on key U.S. markets, including the South-West, Mid-West, and Western regions. Despite today’s divergent price movements, the bigger picture is clear: this merger could redefine the landscape for both players.
Vakrangee Pops on Life Insurance Partnership Buzz
Vakrangee has been a distribution powerhouse since 1990, bridging the gap in rural and semi-urban areas with services ranging from banking to e-commerce to logistics. The company announced a strategic tie-up with Shriram Life Insurance to distribute life insurance products through its Vakrangee Kendra network, which spans underserved and unserved areas across the country. Investors clearly like the sound of this collaboration. With Vakrangee already positioned as a last-mile distribution giant, this insurance partnership could add significant value to its ecosystem. The stock surged over 5% in intraday trades on Monday, riding high on news of a fresh partnership with Shriram Life Insurance. It opened slightly up at ₹33.44, compared to its previous close of ₹33.17, and quickly shot to ₹34.98.
Indian Real Estate has Optimism Looms for 2025
India’s real estate story in 2024 was anything but straightforward. After riding a high-growth wave post-pandemic, the housing market hit its first bump in years. A combination of soaring property prices and stubbornly high borrowing costs dimmed buyers’ enthusiasm, resulting in a marginal 4% dip in residential sales. Luxury housing thrived as the ultra-rich snapped up swanky penthouses and villas at launch, but affordable housing struggled. Meanwhile, the office space segment soared, recording its highest-ever leasing activity. While the housing segment hit a speed bump, commercial real estate had a stellar year. Office space leasing jumped 14%, hitting a record 85 million square feet. Even the Securities and Exchange Board of India (SEBI) joined the party, introducing regulations for Small and Medium Real Estate Investment Trusts, opening new doors for investment in rent-yielding properties. The surge in e-commerce and manufacturing kept the demand for industrial and logistics spaces buzzing, while premium shopping malls thrived, thanks to entertainment and F&B outlets. If 2024 was a year of recalibration, 2025 could be one of revival—provided policy tweaks and rate cuts align with market needs.
Rupee Volatility Rattles Markets Amid RBI Speculation
The Indian rupee’s usual calm snapped this week, with its one-month implied volatility hitting 4.09%. For a currency that’s spent most of the year as a poster child for low volatility, this spike feels like a plot twist. This speculation gains weight under the watch of new RBI Governor Sanjay Malhotra, who’s yet to reveal his cards on forex intervention. It’s worth noting that while the rupee dipped 0.7% to a new low last Friday, it remains a low-volatility player compared to other Asian currencies like the Chinese yuan and Malaysian ringgit. However, the rupee isn’t without its challenges. Pressure on the yuan, potential U.S. tariffs, and signs of slowing local growth are casting shadows. Add to that India’s trade-weighted real effective exchange rate touching a record high, signaling an overvaluation north of 8%, and it’s clear the currency faces a tricky path ahead.
Adani Enterprises Steps Back
Adani Enterprises is taking a big leap out of the consumer goods arena, announcing its full exit from the Adani Wilmar joint venture. This move will see the conglomerate part ways with its 44% stake in the FMCG giant through a two-phase divestment plan. Wilmar International, via its subsidiary Lence Pte, will scoop up a 31.06% stake from Adani Commodities—AEL’s wholly-owned subsidiary—at a price capped at ₹305 per share. The remaining ~13% will be offloaded to meet public shareholding norms, effectively closing Adani’s chapter in the joint venture. The corporate shake-up doesn’t end there. Adani’s boardroom presence in Adani Wilmar will vanish, with its nominated directors stepping down. The companies also plan to rebrand Adani Wilmar once the transaction wraps up, signaling a clear departure of the Adani name. Adani Wilmar, known for its deep penetration across India’s rural landscape and exports to over 30 countries, will now be entirely under Wilmar International’s umbrella. Meanwhile, Adani Enterprises is redirecting its focus—and presumably, the funds from this deal—toward its core operations in energy, logistics, and infrastructure. Investors were quick to react. Adani Enterprises surged 7.65% to ₹2,593.45 on the BSE, while Adani Wilmar shares dipped briefly before stabilizing, closing slightly lower at ₹329.50.
Refex Renewables Expands Green Portfolio
Refex Renewables & Infrastructure announced on Monday that its subsidiary, Refex Sustainability Solutions Ltd, has acquired a 51% stake in Vyzag Bio-Energy Fuel. The deal, completed on December 30, 2024, positions Vyzag Bio as a subsidiary of RSSL and a step-down subsidiary of Refex Renewables. The acquisition involves RSSL purchasing a 51.03% equity stake through a combination of shares bought from existing promoters and fresh equity infusion. This strategic move aligns with Refex’s commitment to sustainable energy solutions. Vyzag Bio operates a Compressed Bio-Gas (CBG) plant that processes segregated municipal waste to produce biogas. The facility boasts a production capacity of 850 kilograms of CBG daily, marking a notable contribution to India’s green fuel initiatives. The total acquisition cost, including share purchase and fresh capital infusion, stands at approximately ₹2.90 crore, as per a prior company filing. This development underscores Refex Renewables’ focus on diversifying its renewable energy portfolio while promoting sustainable waste management and clean energy production.
Ventive Hospitality Makes a Promising Market Debut
Ventive Hospitality shares started strong on December 30, listing at an 11.7% premium on the BSE at ₹718.15, surpassing the issue price of ₹643. The stock quickly climbed to ₹732 on both the BSE and NSE before stabilizing around ₹717.85 and ₹716.45, respectively, by mid-morning trading. The stock’s performance aligned with grey market predictions, where it commanded a ₹68 premium, suggesting an 11% listing gain. Ventive Hospitality made a strong debut with its IPO, which ran from December 20 to December 24, successfully raising ₹1,600 crore. The company issued 2.49 crore fresh shares as part of the offering. With strong ties to global brands such as Marriott and Hilton, the company has positioned itself as a premium player in the hospitality sector. However, analysts note potential vulnerabilities. Akriti Mehrotra of StoxBox highlighted the firm’s dependence on third-party operators for 78% of its keys, which could pose reputational risks. Despite this, she emphasized Ventive’s robust financial performance, including a 44% revenue CAGR and stable cash flows from annuity assets comprising 41% of its revenue.
JSW Energy Takes a Big Leap with O2 Power Acquisition
JSW Energy stock soared nearly 8% after announcing its move to acquire a 100% stake in O2 Power Midco Holdings, O2 Energy SG, and their subsidiaries. The stock opened at ₹650.20 on Monday, cruising more than 5% above its previous close of ₹625.05, and shot up to ₹673.05 during the day. This surge came hot on the heels of the Friday evening announcement: JSW Neo Energy, a fully owned arm of JSW Energy, is set to purchase the renewable energy platform for ₹12,468 crore. This acquisition aligns perfectly with JSW Energy’s renewable energy ambitions, helping it to further its goal of reaching 20 GW of renewable capacity by 2030. Analysts are bullish on this move. ICICI Securities is particularly upbeat, with a ‘buy’ rating on JSW Energy, emphasizing the strategic value of this acquisition. On top of all this, investor sentiment has been further bolstered by solid credit ratings. India Ratings and ICRA both reaffirmed stable ‘AA’ ratings for JSW Energy’s debt, providing extra assurance to shareholders. This deal is a game-changer for JSW Energy, propelling it even closer to its renewable energy goals.
Overview
Monday’s market action? Not the most thrilling. US stocks slipped as rising Treasury yields continued to put pressure on investor sentiment. The Dow Jones dropped 128.3 points, or 0.30%, landing at 42,863.86. The S&P 500 lost 50.2 points, or 0.84%, closing at 5,920.67, and the Nasdaq Composite fell by 261.6 points, or 1.33%, ending the day at 19,460.41. At the same time, the US dollar was on a roll, hitting a two-year high. As of now, the dollar index was up by 0.18%, sitting at 108.17, just shy of its recent high.
The Japanese yen barely nudged up from five-month lows against the dollar, a result of the persistent interest rate gap between Japan and the US. China’s stock market eked out a small gain, thanks to energy and financial sectors, but the Hong Kong market lost ground. Over in Japan, the Nikkei index retreated by 0.96% on Monday, as profit-taking kicked in after a solid year that saw the index rise almost 20%.
Back home, India wasn’t immune to the global market jitters. The Nifty 50 closed down 0.71%, or 169 points, at 23,644.90, while the Sensex shed 451 points, or 0.57%, to settle at 78,248.13. Weak global cues and a struggling banking sector led the charge lower, with giants like HDFC Bank and ICICI Bank taking a hit. The Nifty Bank index dropped by 0.7%, and both PSU and Private Bank indices saw losses. Healthcare and Pharma stocks, which managed to stay afloat, with their respective indices gaining more than 1%.
And as for commodities—gold saw a small dip, with the price of 24-carat gold in India down by ₹10, sitting at ₹7800.3 per gram. Silver also took a hit, dropping ₹100 to ₹95400 per kg. Oil prices rose modestly, buoyed by thin holiday trading and anticipation of upcoming economic data from the US and China.