The Indian equity market displayed mixed movements on Tuesday, December 24, 2024, as the benchmark indices, BSE Sensex and NSE Nifty50, ended the session flat after a day of range-bound trading. Below is a detailed analysis of the day’s market performance, key stock movements, sectoral trends, and major news highlights.
Market Performance
Benchmark Indices
- The BSE Sensex closed at 78,472.87, down 67.30 points or 0.09%, retreating from the day’s high of 78,877.36.
- The NSE Nifty50 ended at 23,727.65, lower by 25.80 points or 0.11%, after trading within the range of 23,867.65 to 23,709.65.
Broader Markets
- The Nifty Smallcap100 index managed to close in positive territory, up 0.24%, reflecting selective interest in small-cap stocks.
- The Nifty Midcap100 index, however, ended slightly lower by 0.06%, highlighting subdued performance in the midcap space.
Top Gainers and Losers
Nifty50 Gainers
- Tata Motors: Up 1.79%, benefiting from strong demand in both domestic and international markets.
- Adani Enterprises: Continued its positive trajectory, closing higher on sustained investor confidence.
- Eicher Motors: Gained on the back of robust performance in the premium two-wheeler segment.
- BPCL: Rose on the progress of its Andhra Pradesh refinery project.
- Nestle India: Higher FMCG demand supported the stock’s upward movement.
Nifty50 Losers
- Power Grid Corporation: Fell 1.68%, leading the list of laggards.
- JSW Steel: Declined as metal stocks faced selling pressure due to weak global cues.
- SBI Life Insurance: Witnessed profit booking after recent gains.
- Titan Company: Slipped as investors turned cautious about valuations.
- Infosys: Closed lower, reflecting concerns over the global IT spending outlook.
Sectoral Highlights
- Gainers:
- Nifty FMCG: Up 0.57%, driven by Nestle India and Britannia.
- Nifty Auto: Up 0.45%, with Tata Motors and Eicher Motors leading the gains.
- Oil Marketing Companies (OMCs): Registered modest gains on positive project developments.
- Flat Performers:
- Nifty Private Bank: Ended marginally higher, with mixed performances from major banks.
- Nifty Healthcare: Recorded slight gains, supported by select pharmaceutical stocks.
- Losers:
- Metal and Power Indices: Witnessed declines, with losses extending up to 0.83%.
- IT and Realty Indices: Closed in the red due to weak investor sentiment.
Key Market Highlights
1. Mobikwik’s Stellar Run
Mobikwik’s stock soared 35% from its Monday low, hitting a new high of ₹630 during intra-day trade. This remarkable performance came amid heavy trading volumes, reflecting strong investor confidence post its stellar market debut.
2. Oyo’s Strategic Acquisition
Oyo Hotels completed the acquisition of G6 Hospitality, a US-based operator of Motel 6 and Studio 6 brands, for $525 million. This acquisition is expected to strengthen Oyo’s presence in the North American market, aligning with its global expansion strategy.
3. Mutual Fund Growth
India’s mutual fund industry achieved a significant milestone, with assets under management surging by ₹17 trillion in 2024. The growth was driven by buoyant equity markets, robust economic fundamentals, and increased investor participation.
4. Indigo’s Record Passenger Traffic
Indigo Airlines set a new benchmark by carrying 10 million passengers in November 2024, reflecting strong recovery in the aviation sector and the airline’s dominance in the domestic market.
5. Greaves Electric Mobility’s IPO Plans
Greaves Electric Mobility, a subsidiary of Greaves Cotton, filed its Draft Red Herring Prospectus (DRHP) with SEBI for its Initial Public Offering (IPO). This move is expected to enhance its capital base as the company eyes growth in the electric vehicle segment.
6. HFCL’s Defence Manufacturing Push
HFCL shares rose 5%, boosted by the announcement of a new advanced defence equipment manufacturing facility in Hosur, Tamil Nadu. The facility is dedicated to producing indigenous technologies, strengthening HFCL’s position in the defence sector.
Technical Outlook
Nifty50
- The Nifty50 closed below its 200-day moving average (DMA) for the first time in three days, indicating a short-term bearish trend.
- Resistance is observed at 23,860, while support lies in the 23,500–23,400 zone.
- The Relative Strength Index (RSI) continues to decline, reinforcing a cautious outlook.
Sensex
- The Sensex displayed a muted trend, with selling pressure in metal and IT stocks offsetting gains in FMCG and auto sectors.
Expert Views
- Rupak De, Senior Technical Analyst, LKP Securities: “The Nifty’s range-bound movement and closing below the 200-DMA suggest short-term bearishness. Investors should watch the 23,400 support level closely.”
- Vinod Nair, Head of Research, Geojit Financial Services: “Market caution is evident amid global economic uncertainties, a strong dollar, and high bond yields. The trajectory will depend on Q3 results and Union Budget developments.”
Broader Market Highlights
- IPO Activity:
- Several IPOs, including those of Carraro India, Senores Pharmaceuticals, and Ventive Hospitality, garnered investor attention. Senores Pharmaceuticals’ IPO was oversubscribed nearly 28 times.
- Defence Stocks in Focus: Stocks like Bharat Forge and HFCL gained on positive developments in the defence manufacturing space.
- Sector Leaders: Tata Motors, BPCL, and Eicher Motors emerged as key gainers, while Infosys and JSW Steel led the declines.
Conclusion
The Indian stock market showcased a day of consolidation, with major indices ending flat amidst mixed performances across sectors. While FMCG, auto, and OMC sectors provided some support, metals and IT stocks dragged the broader indices lower. The market’s near-term trajectory hinges on corporate earnings, global cues, and macroeconomic factors, with investors maintaining a cautious stance ahead of key events like the Union Budget.
The session highlighted the resilience of small-cap stocks, the robust debut of Mobikwik, and strategic moves by companies like Oyo and HFCL. These developments underline the dynamic nature of the Indian equity market, offering opportunities across various sectors for discerning investors. As the market remains closed on December 25, 2024, for Christmas, participants will look forward to fresh cues in the coming sessions.
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