 "Market Today: FY25 GDP; Quadrant, Capital Infra IPOs; Indo Farm IPO listing")
Stock Markets Today, January 7, 2025: The Indian benchmarks, Sensex and Nifty50, are gearing up for another cautious day, with a mix of economic indicators and global trends setting the stage for trading.
As investors eye FY25 GDP advance estimates and development in Human Metapneumovirus (HMPV) cases, the persistent selling by foreign institutional investors (FIIs) remains a major overhang.
However, early signs indicate a positive opening for the markets. At 6:37 AM, GIFT Nifty futures were trading 51 points higher at 23,772, pointing to a higher start for the bourses.
This comes on the heels of a tumultuous trading session where both indices nosedived over 1.5 per cent, marking their steepest single-day drop in three months. The sell-off was fueled by continued FPI outflows and dismal business updates from Indian banks, sparking concerns about lackluster corporate earnings for the December quarter.
Domestic cues
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With just three weeks to go before the Union Budget for FY26, all eyes are on the National Statistics Office, set to unveil the first advance estimates of FY25 GDP today. Experts are optimistic, predicting a growth trajectory of 6.4-6.8 per cent for FY25, driven by resilient rural demand and steady agricultural and service sector output.
Meanwhile, the finance ministry has wrapped up nine rounds of pre-Budget consultations. Stakeholders have put forth a range of proposals, including measures to spur consumption and employment, tax relief for individuals and MSMEs, and broad-based economic reforms.
In regulatory updates, the Securities and Exchange Board of India (SEBI) introduced new settlement norms for inactive brokerage accounts. Effective immediately, brokers are now required to refund funds lying idle in such accounts on a predetermined monthly settlement date. The move aims to enhance transparency and safeguard investors’ interests. READ MORE
Other triggers
FII, DII
FIIs sold shares worth Rs 2,575.06 crore on January 6. Contrastingly, Domestic Institutional Investors (DIIs) bought equities worth Rs 5,749.65 crore.
IPO market Indo Farm Equipment IPO (Mainline) and Technichem Organics IPO (SME) will list on the bourses.
Meanwhile, Quadrant Future Tek IPO (Mainline), Capital Infra Trust InvIT IPO (Mainline), Avax Apparels And Ornaments IPO (SME), Delta Autocorp IPO (SME), BR Goyal Infrastructure IPO (SME) will open for subscription.
Standard Glass Lining Technology IPO (Mainline), Indobell Insulation IPO (SME) will enter Day 2 of their subscription.
Additionally, Fabtech Technologies Cleanrooms IPO (SME) enters Day 3, while Davin Sons Retail IPO (SME) and Parmeshwar Metal IPO (SME) will see their allotments today.
Global markets
Asia-Pacific markets traded higher on Tuesday, buoyed by a tech rally on Wall Street that pushed the S&P 500 and Nasdaq to back-to-back gains.
Semiconductor stocks led the charge globally, with Nvidia climbing sharply after Foxconn reported record fourth-quarter revenue, signaling strength in the tech sector.
Taiwan Semiconductor Manufacturing Company (TSMC) hit a record high during Monday’s session, continuing to gain momentum as the optimism from US markets spilled over into Asia.
Nikkei rebounded, trading 1.70 per cent higher after leading losses on Monday. Kospi rose 1.14 per cent, fuelled by chipmakers Samsung Electronics and SK Hynix, which gained 2 per cent and 1.35 per cent, respectively. ASX 200 climbed 0.2 per cent, marking its fourth consecutive day of gains.
In the US, the S&P 500 rose 0.55 per cent, and the Nasdaq surged 1.24 per cent, driven by robust performance in technology stocks. The Dow Jones, however, slipped 0.06 per cent, reversing earlier gains and reflecting mixed investor sentiment.
The market also climbed after President-elect Donald Trump refuted a newspaper report suggesting that his incoming administration might adopt a less aggressive tariff policy than he had previously indicated.
Investors in the US now await November JOLTs job openings and import, export data, which is expected to be released later in the day.
Commodity check
Oil prices dipped on Monday after weak economic data from the US and Germany. Brent crude fell 0.27 per cent to $76.30 per barrel, and WTI slipped 0.54 per cent to $73.56, halting a five-day rally driven by a weaker dollar and winter storm-driven energy demand.
Gold also edged lower as rising US Treasury yields offset a weak dollar. Spot gold dropped 0.2 per cent to $2,634.27 per ounce, while US gold futures declined 0.4 per cent to $2,645.50, with markets eyeing economic data for further Fed rate cues.
Here's how analysts are assessing today's (January 7) trading session:
Hrishikesh Yedve, AVP of technical & derivatives Research at Asit C Mehta Investment
The index will face an immediate obstacle around 23,900-23,910. On the downside, the index held 250-DSMA support near around 23,500 levels. A short-term pullback is probable if the index maintains above 23,500; however, if the index slides below 23,500, weakness may intensify.
Shrikant Chouhan, head of equity research at Kotak Securities
As long as the market is trading below 23750/78200, weak sentiment is likely to continue. Below this level, it could retest the 23500/77600 mark. Further downside may also occur, potentially dragging the index down to 23400/77300. Conversely, if it rises above 23750/78200, the market could bounce back to the 23900-23950/78600-78800 range.