Sensex climbs 100 pts to 78,650; Smallcap, Oil, Auto up, financials weigh

Benchmark Indian equity indices BSE Sensex and Nifty 50 were trading higher on Tuesday, amid firm global cues.

At 1 PM, the BSE Sensex was higher by 121.87 points, or 0.16 per cent, at 78,662.04, while the Nifty50 was at 23,790.15, higher by 36.70 points, or 0.15 per cent.

In the afternoon, 18 out of the 30 constituent stocks on the BSE Sensex index were trading higher, with gains led by Tata Motors (up 2 per cent), followed by ITC, Mahindra & Mahindra, Nestle India, and Zomato, while losses were capped by Tata Steel (down 1.31 per cent), followed by IndusInd Bank, SBI, Bajaj Finance, and Titan.

On the Nifty50, 31 stocks were trading higher, with gains led by Adani Enterprises (up 2.28 per cent), followed by Tata Motors, Trent, Dr Reddy’s, and Britannia Industries, while losses were capped by Tata Steel (down 1.38 per cent), JSW Steel, IndusInd Bank, SBI, and Hindalco Industries.

Across sectors, the Auto index was the top gainer, climbing 0.92 per cent, followed by the Oil, FMCG and Realty indices.
On the flip side, the Metal index was the top drag, declining 0.78 per cent, followed by the PSU Bank index, which was down 0.57 per cent. The Nifty Bank and Financial Services indices were also trading under pressure, while the IT, Media, Pharma, Healthcare, and Consumer Durables indices were also trading with gains.

In the broader markets, the Nifty Smallcap 100 index was ahead by 0.41 per cent, followed by the Nifty Midcap 100, higher by 0.26 per cent.

In the primary markets, Unimech Aerospace and Manufacturing Limited IPO in the mainline section will enter its second day of subscription today, while five mainline IPOs (Mamata Machinery Limited IPO, Dam Capital Advisers IPO, Transrail Lighting Limited IPO, Concord Enviro Systems Limited IPO, and Sanathan Textiles Limited IPO), will see their basis of allotment get finalised today.

The subscription windows for three mainline IPOs (Carraro India Limited IPO, Senores Pharmaceuticals Limited IPO, and Ventive Hospitality Limited IPO) will also close today, along with Newmalayalam Steel Limited IPO in the SME section.

Moreover, new listings through IPOs in 2024 contributed nearly 3 per cent (Rs 14 trillion) to India’s market capitalisation, surpassing last year’s contribution of 1.4 per cent (Rs 5 trillion). READ MORE

Elsewhere, Asian stocks edged up on Tuesday, though moves were subdued in a holiday-curtailed week, while the greenback held near a two-year high helped by elevated US Treasury yields as investors prepared for fewer Federal Reserve rate cuts in 2025.

In China, stocks extended gains slightly on the back of news of more support from Beijing to shore up the country’s stuttering economic recovery.

The CSI300 blue-chip index and Shanghai Composite Index last traded 0.9 per cent higher each. Hong Kong’s Hang Seng Index advanced 1.08 per cent.

Two sources told Reuters that Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, which would be the highest on record.

Chinese government bond yields ticked up in response, with the 10-year yield gaining two basis points to 1.7125 per cent.

The news came shortly after the country’s finance ministry said authorities will ramp up fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents as well as expanding consumer goods trade-ins.

Still, investors remain cautious on the outlook for the world’s second-largest economy, particularly as it faces the threat of hefty tariffs from US President-elect Donald Trump.

Elsewhere, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.44 per cent, tracking Wall Street’s overnight gain.

EUROSTOXX 50 futures ticked up 0.04 per cent, while FTSE futures rose 0.46 per cent. S&P 500 futures and Nasdaq futures each lost 0.05 per cent.

Japan’s Nikkei fell 0.24 per cent.

After a recent run of central bank decisions, this week is much quieter, leaving the rates theme the main driver of market moves, with the dollar’s continued strength a burden for commodities and gold.

Markets are now pricing in just about 35 basis points of easing for 2025, which has in turn sent US Treasury yields surging and the dollar to new highs.

The two-year Treasury yield last stood at 4.3427 per cent, while the benchmark 10-year yield steadied near a seven-month high at 4.5907 per cent.

Ahead of Trump’s return to the White House in January, global central banks have urged caution over their rate paths due to uncertainty on how his planned tariffs, lower taxes and immigration curbs might affect policy.

Data on Monday showed US consumer confidence unexpectedly weakened in December as the post-election euphoria fizzled and concerns about future business conditions emerged.

In currencies, the dollar index held near a two-year high at 108.14, having climbed more than 2 per cent for the month thus far.

Japan’s Finance Minister Katsunobu Kato on Tuesday reiterated Tokyo’s discomfort over excessive foreign exchange moves and put speculators on notice that authorities are ready to act to stabilise a faltering yen.

The strong dollar combined with high bond yields to weigh on gold, which stood at $2,618.10 an ounce after slipping 1 per cent last week.

Oil prices edged higher, with Brent crude futures rising 0.5 per cent to $72.99 a barrel, while US crude gained 0.46 per cent to $69.56 per barrel.