Markets Today: Dec PMI; FIIs; Wall Street up; Standard Glass Lining IPO

Stock Markets Today, January 6, 2025: Foreign institutional investors (FIIs) continued their selling spree, while anticipation built around the release of advance estimates for FY25 gross domestic product (GDP). The mix of cautious sentiment and economic speculation is set to shape market dynamics as the week begins.

 

Benchmarks – Sensex and Nifty50 – are expected to tread carefully, with early indicators pointing to a subdued opening. At 6:35 AM, GIFT Nifty futures were trading merely 4 points higher at 24,096, hinting at a flat to positive start for the day.

 

The previous trading session saw the markets grappling with a sharp downturn. The Sensex tumbled 720.60 points, or 0.90 per cent, to close at 79,223.11, while the Nifty50 followed suit, ending 183.90 points, or 0.76 per cent, lower at 24,004.75. 

 

 

Domestic cues

 

Investors now await Composite and Services final PMI for December, which will be released today.

 

Three weeks before the Union Budget for FY26, the National Statistics Office will release the first advance estimates of gross domestic product (GDP) for FY25 on January 7 amid a moderation in growth expectations. Experts, however, say resilience in rural demand, along with sustained agricultural and services-sector output, will keep India on a growth path towards achieving 6.4-6.8 per cent expansion in FY25.

 

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On the equities front, the recent spike in market volatility stems from a combination of several factors, says Janakiraman Rengaraju, chief investment officer of emerging markets equity-India, Franklin Templeton Asset Management. READ MORE

 

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Also, the defence ministry’s focus on modernisation, new technologies, and exports, along with the concentration of orders in the fourth quarter (Q4) of 2024-25 and long-term growth opportunities from indigenisation, are expected to strengthen the revenue and earnings potential of India’s defence sector.

 

Other triggers

 

FII, DII 

FIIs sold shares worth Rs 4,227.25 crore on January 3. Contrastingly, Domestic Institutional Investors (DIIs) bought equities worth Rs 820.60 crore.

 

IPO market 

Standard Glass Lining Technology IPO (Mainline), Indobell Insulation IPO (SME) will open for subscription. 

 

Fabtech Technologies Cleanrooms IPO (SME) enters Day 2, while Davin Sons Retail IPO (SME) and Parmeshwar Metal IPO (SME) enter the final day of their subscription. 

 

Global cues

 

Asia-Pacific markets mostly advanced Monday, as investors awaited business activity data from key economies in the region. China’s Caixin services purchasing managers’ index from S&P Global is expected later in the day, with market attention on China following the central bank's announcement of a “moderately loose” monetary policy for 2025. 

 

The au Jibun Bank Japan Services PMI was revised lower to 50.9 in December 2024 from a flash reading of 51.4.

 

Nikkei slipped 0.6 per cent. Kospi rose 0.4 per cent despite ongoing political uncertainty after the head of the presidential security service expressed defiance against efforts to arrest impeached President Yoon Suk Yeol. 

 

Meanwhile, ASX 200 gained 0.2 per cent.

 

In the US, tech stocks fuelled a rebound on Friday as the Nasdaq and S&P 500 ended their five-day losing streak. The S&P 500 climbed 1.26 per cent, the Nasdaq advanced 1.77 per cent, and the Dow Jones added 0.8 per cent.

 

Investors in the US now await Services and Composite PMI figures for December, scheduled for today.

 

Commodity check

 

Gold prices slipped from a three-week high on Friday, weighed down by a strong dollar, as markets prepared for potential economic and trade shifts under US President-elect Donald Trump. Spot gold fell 0.7 per cent to $2,637.78 an ounce, after reaching its highest level since December 13. US gold futures declined 0.7 per cent to $2,651.10.

 

Oil prices ended the week with gains on Friday, supported by expectations of additional economic stimulus in China and lower US interest rates. Brent crude futures climbed 58 cents, or 0.76 per cent, to close at $76.51 a barrel. US WTI crude rose 83 cents, or 1.13 per cent, to settle at $73.96 a barrel.

 

Here's how analysts are assessing today's (January 6) trading session:

 

Rupak De, senior technical analyst at LKP Securities

 

On the upside, the index may rise towards 24,200–24,220, with a break above 24,220 potentially pushing it to 24,500. Conversely, a decisive move below 24,000 could lead the index towards 23,700.

 

Amol Athawale, VP of technical research at Kotak Securities

 

The 200-day SMA, or the 23,900-23,750 / 78600-78100 level, would be key support zones, while the 50-day and 20-day SMAs, or the 24,150-24,200/79600-79800 levels, could represent crucial resistance areas. If the market rises above 24,200/79800, the chances of reaching 24,400-24,500/80200-80500 would turn bright. Conversely, if it falls below 23,750/78100, sentiment could change. Below this level, traders may prefer to exit their long positions.