Market Commentary - Mid-Session
Benchmarks nudge higher; breadth positive As on : 10-Dec-24  09:37

The key equity indices traded with minor gains in early trade. The Nifty traded above the 24,600 level. Realty, healthcare and pharma shares advanced while auto, oil & gas and media stocks declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex declined 46.18 points or 0.06% to 81,462.28. The Nifty 50 index added 5.55 points or 0.02% to 24,624.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.03% and the S&P BSE Small-Cap index added 0.03%.

The market breadth was positive. On the BSE, 1,714 shares rose and 1,314 shares fell. A total of 122 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 724.27 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,648.07 crore in the Indian equity market on 9 December 2024, provisional data showed.

Stocks in Spotlight:

Metropolis Healthcare advanced 1.81% after its board approved the acquisition of 100% stake in Core Diagnostics for total consideration of Rs 246.8 crore. This strategic acquisition will enhance Metropolis' capabilities in advanced cancer testing, while deepening its presence in Northern and Eastern India and driving market share expansion in the specialized segment across the country.

Bharat Electronics added 0.62%. The company has received additional orders worth Rs 634 crore, including maintenance of the Aakash missile system, Telescopic sights for guns, communication equipment, jammers, electronic voting machines , test stations, spares and services. With these orders, the company has now accumulated a total of Rs 8,828 crore in orders for the current financial year.

GE Vernova T&D India advanced 1.40% after the company received an order worth Rs 400 crore from Sterlite Power for the supply and supervision of 765KV power transmission and reactors for the khawda project.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.50% to 6.818 as compared with previous close 6.826.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.8000, compared with its close of 84.8600 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement was added 0.21% to Rs 76,648.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 106.19.

The United States 10-year bond yield fell 0.26% to 4.189.

In the commodities market, Brent crude for February 2024 settlement declined 26 cents or 0.36% to $71.88 a barrel.

Global Markets:

Most Asian stocks climbed on Tuesday, led by a surge in Chinese equities. This uptick was triggered by the Chinese government's announcement of significant policy changes for 2025.

China's Politburo, the country's top decision-making body, signaled a shift towards a more accommodative monetary policy. This departure from the previous prudent stance is expected to stimulate the economy and support stock and property markets. The Politburo also pledged to boost domestic consumption and demand, indicating a potential increase in targeted stimulus measures.

Investors are now awaiting the Central Economic Work Conference, scheduled to begin on Wednesday, for further details on China's economic plans. Analysts anticipate the conference to outline specific policy priorities and the annual growth target.

Beyond China, market participants are closely monitoring the Reserve Bank of Australia's monetary policy decision, due later today.

Meanwhile, China's November exports rose 6.7% YoY, down from 12.7% in October, signaling global demand concerns for Chinese goods and imports dropped 3.9% YoY in November, a sharper fall from October's 2.3% decline, underscoring economic pressures.

US stocks closed lower on Monday, with the Dow Jones Industrial Average hitting a 1.5-week low. Profit-taking and long liquidation pressured the market ahead of the release of crucial US inflation data on Wednesday. Rising Treasury yields and heightened geopolitical tensions in the Middle East, following the fall of the Assad regime in Syria, also weighed on investor sentiment.

The Dow Jones Industrial Average fell 0.54%, while the S&P 500 index fell 0.61%, and the NASDAQ Composite index fell 0.60%.

Nvidia shares declined 2.6% during regular trading hours and further dipped 0.6% in after-hours trading, amid reports of an antitrust investigation by Chinese authorities.

Oracle Corporation's stock plummeted nearly 8% in after-hours trading after the company reported weaker-than-expected quarterly earnings, highlighting increased competition in the cloud computing sector from major players like Microsoft and Amazon.

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