Nifty scale above 23,850; Auto shares rally for 3rd day

The key equity indices traded with substantial gains in morning trade. The Nifty traded above the 23,850 mark. Auto shares extended gains for the third consecutive trading session. Trading could be volatile due to weekly F&O series expiry today.

At 10:30 IST, the barometer index, the S&P BSE Sensex jumped 449.03 points or 0.60% to 78,979.62. The Nifty 50 index rallied 132.95 points or 0.56% to 23,875.85.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% and the S&P BSE Small-Cap index gained 0.23%.

The market breadth was strong. On the BSE, 2,174 shares rose and 1,414 shares fell. A total of 173 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 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.

Buzzing Index:

The Nifty Auto index gained 1.05% to 23,381.65. The index rallied 2.69% in three consecutive trading sessions.

Ashok Leyland (up 2.36%), Mahindra & Mahindra (up 1.42%), Tube Investments of India (up 1.13%), TVS Motor Company (up 1.12%), Maruti Suzuki India (up 0.93%), Eicher Motors (up 0.84%), Hero MotoCorp (up 0.76%), Bajaj Auto (up 0.68%), Samvardhana Motherson International (up 0.61%) and Tata Motors (up 0.27%) advanced.

On the other hand, Apollo Tyres (down 1.62%), MRF (down 0.81%) and Balkrishna Industries (down 0.41%) edged lower.

Stocks in Spotlight:

Ashok Leyland jumped 4.15% 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.

RailTel Corporation of India surged 6.77% after the company said that it has received the work order from Bharat Coking Coal for works amounting to Rs 78.43 crore.

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