Markets Today: FY25 GDP; Wall St. slips; Q3 results; Leo Dry Fruits listing

Stock Markets Today, January 8, 2025: Traders will closely analyse the FY25 GDP advance estimates on Wednesday, as market sentiment remains pressured by sustained selling from Foreign Institutional Investors (FIIs) and weakness in US markets. Consequently, the benchmark indices, Sensex and Nifty, are likely to open on a cautious note.

 

At 6:31 AM, GIFT Nifty futures indicated a subdued start, trading 72 points lower at 23,723, suggesting a negative opening for Indian bourses.

 

In the previous trading session, however, domestic markets showed resilience. The Sensex climbed 234.12 points, or 0.30 per cent, to close at 78,199.11. Similarly, the Nifty50 added 91.85 points, or 0.39 per cent, to end at 23,707.90.

 

  Also Read: Equities may deliver 8-12% in 2025: Aditya Birla Sun Life Mutual Fund 

Domestic cues

 

The Indian economy's growth is projected to slow to a four-year low of 6.4 per cent in FY25, falling short of the Reserve Bank of India’s (RBI) forecast of 6.6 per cent, according to the First Advance Estimates released by the National Statistics Office (NSO) on Tuesday.

 

Also Read: Farm sector holds out amid headwinds: NSO's 1st advance estimates for FY25 

Ahead of the Union Budget for FY 2025-26, M Nagaraju, Secretary of the Department of Financial Services, will chair a meeting on January 15 with Managing Directors and Chief Executive Officers of public sector banks. The meeting will review progress on various financial inclusion schemes and address funding requirements in the context of the upcoming Budget, according to sources.

 

Also Read: FY25 GDP growth of 6.4% underwhelms, but are there silver linings?

 

On the regulatory front, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 9 lakh on Stockholding Services for violations identified during a thematic inspection conducted between April 2022 and June 2023.

 

Meanwhile, the Rs 68-trillion mutual fund (MF) industry is set for expansion in 2025, with several new players set to enter the market. Sebi has granted multiple partial and final approvals to new entrants over the past few months.

 

Other market triggers

 

Q3 results

 

Indian IT service providers are set to take centre stage as earnings season unfolds. For Q3FY25, the sector is expected to show a year-on-year (Y-o-Y) revenue improvement. According to Bloomberg consensus estimates, the top four IT firms — Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Wipro — are projected to report Y-o-Y growth ranging between 0.1 per cent and 7 per cent.  

Net profit of 19 listed banks for the quarter ended December 2024 (Q3FY25) is likely to grow at a modest pace of 9.7 per cent year-on-year (Y-o-Y). This is owing to pressure on margins, moderation in credit off-take, along with some increase in credit costs, according to analysts’ estimates. 

FII, DII activity

 

FIIs continued their selling spree, offloading shares worth Rs 1,491.46 crore on January 7. On the other hand, Domestic Institutional Investors (DIIs) remained net buyers, buying Rs equities worth 1,615.28 crore.

 

IPO market

 

Leo Dry Fruits IPO will list on BSE SME. 

Quadrant Future Tek IPO (Mainline), Capital Infra Trust InvIT IPO (Mainline), Avax Apparels And Ornaments IPO (SME), Delta Autocorp IPO (SME), BR Goyal Infrastructure IPO (SME) will enter Day 2 of their subscription.

 

Standard Glass Lining IPO (Mainline) and Indobell Insulation IPO (SME) will enter Day 3 of their subscription. 

 

Meanwhile, Fabtech Technologies Cleanrooms IPO (SME) will see its allotment.

 

Global Markets

 

Asia-Pacific markets opened lower on Wednesday, mirroring losses on Wall Street as Treasury yields rose and major US tech stocks declined. 

 

Nikkei dropped 0.57 per cent at the open, while the Topix index shed 0.45 per cent. Kospi, in contrast, edged up 0.28 per cent

 

Meanwhile, ASX 200 hovered just below the flatline.

 

In the US, Wall Street saw declines led by major technology stocks. The S&P 500 fell 1.11 per cent, the Dow Jones Industrial Average dropped 0.42 per cent, and the Nasdaq Composite slid 1.89 per cent.

 

Commodity prices

 

Oil prices rose on Tuesday, driven by concerns over tighter supply stemming from Western sanctions on Russia and Iran, as well as expectations of increased demand from China. 

 

Brent crude futures climbed 0.98 per cent to settle at $77.05 per barrel, while US WTI crude advanced 0.94 per cent to close at $74.25 per barrel.

 

Gold prices, meanwhile, pared earlier gains as a strengthening dollar and rising Treasury yields weighed on the metal. A surge in US job openings reduced the likelihood of major rate cuts by the Federal Reserve, further pressuring gold. 

 

Spot gold rose 0.5 per cent to $2,647.59 per ounce after reaching a high of 1 per cent earlier in the session, while US gold futures increased 0.6 per cent to $2,662.60 per ounce.

 

Here's how analysts are assessing today's (January 8) trading session:

 

Hrishikesh Yedve, AVP of technical & derivatives Research at Asit C Mehta Investment

 

Nifty index will face resistance near 23,900 levels, where its 200-Days Simple Moving Average (200-DSMA) is placed. On the downside, the index held 250-DSMA support near around 23,500 levels. In the short term, Nifty is expected to consolidate between 23,500 and 23,900, with a breakout on either side, further determining the direction of the market.

 

Shrikant Chouhan, head of equity research at Kotak Securities

 

For day traders, 23800/78500 would be the key resistance zone. If the index manages to trade above this level, it could bounce back to 23900-23950/78800-79000. On the other hand, if it falls below 23600/77900, selling pressure is likely to accelerate. Below this level, the market could slip to 23500-23425/77500-77400 The current market texture is non-directional; therefore, level-based trading would be the ideal strategy for day traders.