Wednesday, January 01, 2025 | 08:06 PM ISTEN Hindi

Stock Market Close Highlights: Sensex extends rally, rises 111 pts led by HDFC Bank; Nifty ends flat

Market Highlights: The BSE Sensex has now gained around 1,900 points in the last four trading sessions; Bajaj Finserv, NTPC and Titan were the other top gainers among the Sensex 30 shares on Wednesday

SI Reporter New Delhi

Market, BSE, NSE, NIfty, Stock Market, investment

(Photo: Shutterstock)

9:58 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on Indian markets

Stock Market LIVE Updates: In an anaemic growth environment, what we are advising clients in terms of pecking order, the number one country on radar should be India, followed by Taiwan, China/Hong Kong, followed by two underweights, Korea and ASEAN.

We had a pro-defensive approach, that we dropped three weeks back, and totally turned risk-on.

We're saying, if you want to play India, cyclicals is the way to approach. Even in cyclicals, we're recommending to be overweight on industrials, financials, real estate, hospitals.

In terms of consumers, we're much more selective. What we're funding it through, is by going underweight on materials, and the four-wheeler passenger vehicle play and the OEMs; that's what we're underweight on.

9:48 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on Indian markets

Stock Market LIVE Updates: Start of this fiscal, everybody had high hopes on India; 18 per cent earnings growth expectation.

But now, the sell side has become so cautious on India, that the earnings growth expectation for the entire FY25 is 8 per cent only.

Although they're a lot of pressure on 2026 by forecasting 19 per cent earnings growth. Near term basis, next six months, there is a potential for a getting an upward revision.

But for 2026, or CY2025, that's where some downward revision or realty check may hit.

So when we're coming up with our index target of 26,500 for Nifty, our earnings growth forecast is premised on 11 per cent in-line with the nominal GDP growth of the country, rather than consensus sitting at 19 per cent.

In terms of PE, too, we don't think there is a big chance of a de-rating from here-on.

9:41 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on Indian markets

Stock Market LIVE Updates: If we look at the valuations and market performance, the reason the correction largecap index saw of 12-odd per cent; when we do the dissection of return, close to 6-7 per cent came in form of PE derating, and another 4-5 per cent came from the earnings downward revision.

9:38 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on Indian markets

Stock Market LIVE Updates: What is making foreign investors wait on the sidelines is that they want to see high-frequency data showing that green shoots are emerging, and slowdown is not a concern.

We do believe that what we saw last quarter in GDP growth, or earnings growth, we were at a trough level.

As a house call, we believe, in H2FY25, growth will mean revert to 6.7 per cent. And in terms of earnings, led by strong government spending, better farm income, and some discreationary spending due to festive and wedding season, will ring GDP and earnings growth back on radar.

9:34 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on Indian markets

Stock Market LIVE Updates: Foreign investors see GDP slow down as a massive concern.

In India's factors' performance, in good times, earnings momentum and in bad times earnings resilience are what have been driving markets overall.

In the last three quarters in a row, you can see declaration in earnings growth on YoY terms, that has started concerning investors.

All the plugs got pulled off when in Q2FY25, Nifty 50 excluding financials, or MSCI India excluding financials, delivered negative earning growth.

9:28 AM

Stock Market LIVE Updates: Rajiv Batra of JPMorgan on Indian markets

Stock Market LIVE Updates: Some interest has started coming back, but full arrival will take an earnings, or GDP print or even the high-frequency data moving on our side.

The only clarity foreign investors have got is that policy continuity will happen post Haryana and Maharashtra elections.

9:26 AM

Stock Market LIVE Updates: Rajiv Batra of JPMorgan on Indian markets

Stock Market LIVE Updates: Now, value has started emerging in the financial space, some of the auto space, and utility. Hence, people have started drawing their shopping list.

But we've not seen the full arrival yet, because primary market in India is quite buoyant, and all major focus is going there.

9:26 AM

Stock Market LIVE Updates: Nifty gainers and losers

Stock Market LIVE Updates: BEL, L&T, SBI Life among top gainers on Nifty50

9:24 AM

Stock Market LIVE Updates: Rajiv Batra, of JPMorgan on CNBC TV18, on Indian markets

Stock Market LIVE Updates: Conversation have started changing vs what it was a few months back. Investors have now started looking for ideas, because in some places, value has started emerging.

Global investors, particularly in the West, are laregely focused on value, which India was missing for a good amount of time.

9:24 AM