Market opens on a firm note; breadth positive

The key equity indices traded with significant gains in early trade. The Nifty traded above the 23,750 mark. All the sectoral indices on the NSE traded in the green, with realty, metal, and bank shares gaining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex was up 545.95 points or 0.70% to 78,585.07. The Nifty 50 index added 168.80 points or 0.72% to 23,751.90.

In the broader market, the S&P BSE Mid-Cap index shed 0.12% and the S&P BSE Small-Cap index shed 0.64%.

The market breadth was positive. On the BSE, 1,750 shares rose and 1,460 shares fell. A total of 146 shares were unchanged.

 

Foreign portfolio investors (FPIs) sold shares worth Rs 3,597.82 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,374.37 crore in the Indian equity market on 20 December 2024, provisional data showed.

Economy:

India's foreign exchange reserves dipped by $1.98 billion to $652.87 billion as of December 13, according to data shared by the Reserve Bank of India (RBI) on Friday.

The Weekly Statistical Supplement released by the RBI showed that the primary contributor to this decline was the drop in Foreign Currency Assets (FCAs), which fell by $3 billion to $562.58 billion.

Meanwhile, gold reserves were up by $1.12 billion, bringing the total to $68 billion.

The Special Drawing Rights (SDRs) dipped by $35 million, now totaling $17.99 billion, while the reserve position in the International Monetary Fund (IMF) contracted by $27 million, standing at $42.40 billion.

Stocks in Spotlight:

Saksoft added 2.62% after the company has executed a share purchase agreement (SPA) to acquire 100% stake in Zetechno Products and Services to enhance its capabilities in ServiceNow implementation, consulting, and custom application development.

IDBI Bank rose 0.93%. The company has announced that its board will meet on Tuesday, 31 December 2024, to review and consider a proposal for long-term rupee bond borrowings as part of its debt capital strategy.

Aurobindo Pharma added 0.81%. The pharma major announced that its subsidiary, CuraTeQ Biologics s.r.o., has received marketing authorization from the UKs Medicines and Healthcare Products Regulatory Agency (MHRA) for Bevqolva, its bevacizumab biosimilar.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.50% to 6.893 as compared with previous close 6.790.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.0500, compared with its close of 85.0400 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement shed 0.06% to Rs 76,377.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 107.72.

The United States 10-year bond yield rose 0.11% to 4.528.

In the commodities market, Brent crude for February 2025 settlement added 27 cents or 0.37% to $73.21 a barrel.

Global Markets:

The Dow Jones index futures were up 107 points, signaling a positive opening for U.S. stocks today.

Asian stocks rose Monday after the US inflation data came in below expectations, boosting hopes for potential interest rate cuts. The dollar remained relatively stable.

Relief washed over markets as the US averted a government shutdown. President Biden signed a bill on Saturday, ending a period of uncertainty after Congress passed a temporary funding plan just before the deadline. This deal funds the government until March 14 and includes disaster aid and agricultural assistance.

US stock markets rebounded on Friday. Technology stocks, which had declined sharply after the Fed's decision, saw some recovery on Friday. NVIDIA (+3.1%), Micron (+3.5%), Broadcom (+1.1%), and Intel (+2.4%) all experienced gains.

On Friday, the S&P 500 gained 1.1% to 5,930.90, the Dow Jones Industrial Average rose 1.2% to 42,841.06, and the NASDAQ Composite climbed 1% to 19,572.60.

The PCE price index, a key inflation measure, rose 0.1% in November, slower than the October increase of 0.2%. This brought the annual PCE inflation rate to 2.4%, still above the Fed's 2% target, suggesting persistent inflationary pressures.

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