Indices trade with robust gains; IT shares advance

The key equity benchmarks traded with major gains in the early afternoon trade. The Nifty climbed above the 23,950 mark. IT shares extended gains for the second consecutive trading session.

At 12:28 IST, the barometer index, the S&P BSE Sensex, jumped 837.54 points or 1.07% to 79,344.95. The Nifty 50 index rallied 253.25 points or 1.07% to 23,992.55.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.23% and the S&P BSE Small-Cap index rallied 0.34%.

The market breadth was positive. On the BSE, 2,191 shares rose and 1,647 shares fell. A total of 128 shares were unchanged.

 

Economy

In December 2024, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 56.4, marking a 12-month low and indicating a slower improvement in operating conditions. The headline figure declined slightly from 56.5 in November but remained above the long-run average of 54.1, signaling a robust rate of growth.

Looking to 2025, Indian manufacturers were confident of a rise in output. Optimism reflected advertising, investment, and the expectation of favorable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures.

Ines Lam, economist at HSBC, said, Indias manufacturing activity ended a strong 2024 with a soft note amidst more signs of a slowing trend, albeit moderate, in the industrial sector. The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production. That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July. The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.32% to 14.56. The Nifty 30 January 2025 futures were trading at 24,055, at a premium of 62.45 points as compared with the spot at 23,992.55.

The Nifty option chain for the 30 January 2025 expiry showed a maximum Call OI of 145.9 lakh contracts at the 24,300 strike price. Maximum put OI of 124.3 lakh contracts was seen at 23,000 strike price.

Buzzing Index:

The Nifty IT index added 1.18% to 43,886.15. The index rose 1.27% in two consecutive trading sessions.

Infosys (up 2.94%), HCL Technologies (up 1.46%), L&T Technology Services (up 1.24%), LTIMindtree (up 1%), Mphasis (up 0.97%), Tata Consultancy Services (up 0.55%), Tech Mahindra (up 0.52%), Coforge (up 0.47%), Persistent Systems (up 0.19%) and Wipro (up 0.12%) advanced.

Stocks in Spotlight:

Reliance Power added 3.49% after the companys subsidiary, Sasan Power, repaid a payment of $150 million to IIFCL, UK.

Goa Carbon jumped 5.49% after the company informed that the operations at its Bilaspur Unit located in Sirgitti Industrial Area, Bilaspur (Chhattisgarh), have resumed.

Sahaj Solar climbed 4.17% after the firm received an order worth Rs 36.42 crore from the Tripura Renewable Energy Development Agency (TREDA) under the PM-KUSUM Scheme.

Powered by Capital Market - Live News