Nifty ends above 24,150; Sensex soars 1,436 pts; auto shares rally

The key equity indices ended with robust gains on Thursday, fueled by strong auto sales numbers. The Nifty settled above the 24,150 mark. Barring the Nifty Media index, all the other sectoral indices on the NSE ended in the green. Trading was volatile due to the weekly F&O series expiry today.

As per provisional closing data, the barometer index, the S&P BSE Sensex, soared 1,436.30 points or 1.83% to 79,943.71. The Nifty 50 index jumped 445.75 points or 1.88% to 24,188.65.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.89% and the S&P BSE Small-Cap index added 0.68%.

 

The market breadth was positive. On the BSE, 2,420 shares rose and 1,554 shares fell. A total of 112 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 5.30% to 13.74.

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 expectation of favourable 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.

IPO Update:

The initial public offer (IPO) of Indo Farm Equipment received bids for 1,69,22,05,266 shares as against 84,70,000 shares on offer, according to stock exchange data at 15:15 IST on 02 January 2024. The issue was subscribed to 199.79 times.

The issue opened for bidding on 31 December 2024 and it will close on 02 January 2024. The price band of the IPO is fixed between Rs 204 and Rs 215 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Auto index jumped 3.79% to 24,016.20. The index rallied 5.48% in three consecutive trading sessions.

Eicher Motors (up 8.74%), Maruti Suzuki India (up 5.66%), Ashok Leyland (up 5.52%), Mahindra & Mahindra (up 4.36%), TVS Motor Company (up 4.15%), Bajaj Auto (up 3.94%), Hero MotoCorp (up 3.04%), Samvardhana Motherson International (up 2.57%), Tata Motors (up 2.30%) and Exide Industries (up 1.76%) advanced.

Auto Sales Impact:

Maruti Suzuki India jumped 5.66% after the car manufacturers total production jumped 30.26% to 157,654 units in December 2024 as against 121,028 units recorded in December 2023.

Tata Motors advanced 2.30% after the companys total sales stood at 2,35,599 units in December 2024, registering growth of 0.26% as compared with 2,34,981 units in December 2023.

TVS Motor Company rallied 4.15% after the companys total sales jumped 7% to 321,687 units in December 2024 as against 301,898 units in December 2023.

Eicher Motors surged 8.74% after the company reported 25% jump in total motorcycle sales to 79,466 units in December 2024 from 63,387 units sold in December 2023.

Ashok Leyland gained 5.52% after the company reported 4.97% increased in total vehicle sales to 16,957 units in December 2024, compared to 16,154 units sold in December 2023.

Stocks in Spotlight:

HDFC Life Insurance Company rose 0.46%. The company informed that the company has received two GST orders from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai, Maharashtra, aggregating to Rs 378.32 crore.

Reliance Power rallied 3.65% after the companys subsidiary, Sasan Power has repaid payment of $150 million to IIFCL, UK.

Hi-Tech Pipes shed 0.16%. The company said that it has recorded sales volume of 1,24,233 MT for Q3 FY25, reflecting a growth of 26.10% on year-on-year (YoY) basis.

NMDC advanced 2.64% after the company has reported a 5.1% increase in iron ore production in December 2024, reaching 4.71 million tonnes (MT) compared to the production volume of 4.48 MT recorded in the same month of the previous year.

Jai Corp was locked in 20% upper circuit after the company's subsidiary, Urban Infrastructure Holding (UIHPL), is seeking capital reduction following the sale of a 74% stake in Navi Mumbai IIA to Reliance Industries.

NTPC added 1.32% after the company recorded a power generation of 326 million units in Q3 FY25, a growth of 3.82% as compared to the corresponding period of the previous year.

Punjab National Bank (PNB) advanced 2.87% after its domestic deposits increased 14.4% to Rs 14,75,482 crore as on December 2024 compared with Rs 12,89,270 crore posted in December 2023.

Rama Steel Tubes rose 0.24%. The company said that it has registered a sales volume of 51,669.01 tons in Q3 FY25, which is higher by 10.12% as compared to the sales volume of 46,919.802 tons recorded in Q3 FY24.

UGRO Capital gained 1.04% after the company informed that its board has approved the issuance of non-convertible debentures (NCDs) aggregating upto Rs 100 crore with an option to retain oversubscription upto Rs 50 crore (green shoe option).

Gujarat Toolroom hit an upper limit of 5% after the company announced plans to consider a 5:1 bonus share issue in its upcoming board meeting.

Sunita Tools hit an upper circuit of 2% after the companys subsidiary, Tripathi Aerotech & Weapons Systems has received a major Letter of Intent (LOI) for the supply of empty artillery shells to a major defence product supplier.

Kaka Industries jumped 4.84% after the company successfully commissioned its advanced manufacturing facility in Village Lasundra, Gujarat.

Sandur Manganese & Iron Ores advanced 2.18% after the company announced the receipt of approval for enhancement of Permissible Annual Production (PAP) limit of iron ore.

Goa Carbon surged 6.05% after the company informed that the operations at its Bilaspur Unit located in Sirgitti Industrial Area, Bilaspur (Chhattisgarh), has resumed.

Sahaj Solar hit an upper circuit of 5% after the firm received an order worth Rs 36.42 crore from the Tripura Renewable Energy Development Agency (TREDA) under the PM-KUSUM Scheme.

CSB Bank advanced 2.76% after the bank's total deposits jumped 22.16% to Rs 33,406 crore as on 31 December 2024 from Rs 27,345 crore as on 31 December 2023.

RailTel Corporation of India rallied 3.96% after the company said that it has received the work order from Bharat Coking Coal for works amounting to Rs 78.43 crore.

Global Markets:

The Dow Jones index futures were up 163 points, signaling a strong opening for U.S. stocks today.

European shares fell on Thursday, after an initially positive start to trading in 2025.

Most Asian stocks ended lower on Thursday after Chinas manufacturing data shows slow down in economy. Chinas Caixin/S&P Global manufacturing purchasing managers index for December fell to 50.5 as against 51.5 in November 2024.

Singapore's gross domestic product (GDP) rose 0.1% in the three months to December 31, advance government data showed on Thursday. The reading slowed sharply from the 3.2% seen in the prior quarter.

The US market was closed on Wednesday for New Year's Day.

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