Mumbai, December 25, 2024: The Indian stock market wrapped up a lackluster trading day on Thursday, with the Sensex closing nearly flat at 78,472 and the Nifty gaining marginally to end at 23,750. Despite sluggish movement, auto and pharma stocks emerged as bright spots, bolstered by gains in companies like Adani Ports, Mahindra & Mahindra (M&M), and SBI Life Insurance. The market’s volatility index, India VIX, surged 6.5% to 14.04, reflecting heightened market uncertainty.
Key Market Highlights
Nifty’s Technical Performance:
The Nifty opened on a positive note but struggled to breach the 200-day Simple Moving Average (200-DSMA), which is currently positioned at 23,855. The index formed a small red candle, indicating resistance near this level. Analysts suggest that sustained movement above 23,855 could drive the index to the 24,000–24,100 range, while support remains firm at 23,500.
Market Expert’s View:
According to Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., “In the short term, Nifty is likely to consolidate within the 23,500–23,850 range. A decisive breakout on either side will determine the future trajectory.”
Broader Market Performance
The broader market indices showed mixed performance, with the BSE Midcap closing positive and the Smallcap index ending in the red. Market activity remained muted due to holidays in global markets and a lack of significant domestic triggers.
Sectoral Trends:
Auto stocks recovered from recent corrections, with notable gains in Mahindra & Mahindra and Maruti Suzuki. Pharma stocks also gained traction, driven by optimism in healthcare demand. However, concerns over Foreign Institutional Investor (FII) outflows and the depreciating rupee weighed on sentiment.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The domestic market remained subdued amidst global holidays. While auto stocks showed resilience, uncertainties surrounding the rupee and potential tariffs continue to loom large.”
Stock-Specific Highlights
Adani Ports and M&M Lead Gainers:
Among Sensex constituents, Adani Ports, Mahindra & Mahindra, and SBI Life Insurance led the gains, while select IT and banking stocks saw mild profit booking.
Nisus Finance Soars 20%:
Smallcap stock Nisus Finance Services hit a lifetime high of ₹381.15 per share, locked in a 20% upper circuit. The company reported a 269% surge in net profit for the first half of FY25, reaching ₹18.8 crore, up from ₹5.1 crore in the same period last year.
Redtape Announces Interim Dividend and Bonus Issue:
Redtape Ltd. a listed company in Sensex declared an interim dividend of ₹2 per share (100%) for FY25 and proposed a bonus issue in a 3:1 ratio. The record date for determining eligibility is January 3, 2024. The company also announced plans to increase its authorized share capital from ₹30.02 crore to ₹112.01 crore, creating 40.99 crore additional equity shares.
Outlook for the Market
Analysts predict that the Nifty will continue consolidating within its current range unless it breaches key technical levels. The 200-DSMA at 23,855 remains a critical hurdle for upward momentum, while support at 23,500 provides a safety net.
With the last trading week of the year underway, traders are keenly watching for cues from global markets and policy developments. Corporate announcements, including earnings updates and dividend declarations, are expected to guide near-term sentiment.
The Sensex’s performance also hinges on external factors such as the strength of the US dollar index, geopolitical developments, and the trajectory of interest rates globally.
Looking Ahead
As the year draws to a close, market participants remain cautious but optimistic about opportunities in select sectors like auto and pharma. However, the challenges of FII outflows and macroeconomic headwinds continue to demand vigilant trading strategies.