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BAROMETERS TRADE WITH DECENT GAINS; FINANCIAL SERVICES ADVANCE; VIX RISES 1.7%

Published on Jan 01, 2025 12:33

The headline equity indices traded with modest gains in early afternoon trade. The Nifty climbed above the 23,700 level after hitting the day�s low of 23,562.80 in morning trade. Financial services shares advanced after declining in the past two consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE Sensex rose 408.49 points or 0.52% to 78,547.50. The Nifty 50 index added 100.10 points or 0.42% to 23,744.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.07% and the S&P BSE Small-Cap index rallied 0.70%.

The market breadth was strong. On the BSE, 2,569 shares rose and 1,232 shares fell. A total of 156 shares were unchanged.

Economy:

India�s fiscal deficit reached Rs 8.5 lakh crore in the first eight months of the fiscal year (April-November), representing 52.5% of the budgeted target, according to government data released on December 31st. This exceeds the deficit recorded during the same period in the previous fiscal year, which stood at 50.7%.

Capital expenditure, though improving, lagged behind last year`s pace. At Rs 5.13 lakh crore, it amounted to 46.2% of the budgeted target of Rs 11.1 lakh crore, compared with 58.5% achieved in the corresponding period of the previous fiscal year. Overall government spending reached 60.1% of the budgeted target, slightly higher than the 59% recorded in the previous year.

Revenue receipts fell short of last year`s levels. Net tax revenue collection stood at 55.9%, lower than the corresponding figure in the previous year.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 1.73% to 14.70. The Nifty 30 January 2025 futures were trading at 23,863.95, at a premium of 119.05 points as compared with the spot at 23,744.90.

The Nifty option chain for the 30 January 2025 expiry showed a maximum Call OI of 139 lakh contracts at the 24,500 strike price. Maximum put OI of 120.4 lakh contracts was seen at 23,000 strike price.

Buzzing Index:

The Nifty Financial Services index rose 0.50% to 23,630.90. The index shed 0.66% in the past two trading sessions.

Muthoot Finance (up 1.74%), Bajaj Finance (up 0.95%), SBI Cards & Payment Services (up 0.87%), Shriram Finance (up 0.83%), Bajaj Finserv (up 0.71%), ICICI Bank (up 0.6%), HDFC Bank (up 0.58%), ICICI Lombard General Insurance Company (up 0.4%), SBI Life Insurance Company (up 0.35%) and LIC Housing Finance (up 0.34%) advanced.

On the other hand, HDFC Asset Management Company (down 0.8%), ICICI Prudential Life Insurance Company (down 0.79%) and Power Finance Corporation (down 0.46%) edged lower.

Stocks in Spotlight:

Power Mech Projects added 3.67% after the firm secured a Rs 294 crore order from Adani Power for overhauling, testing, and commissioning services for units 3 and 4 of 2x660 MW Korba Phase-II thermal powers.

VA TECH WABAG rose 0.93%. The company said that it has secured an order worth Rs 145 crore from Chennai Petroleum Corporation (CPCL) for installing desalination water pipelines at CPCL�s Kattupalli plant.

Kalpataru Projects International (KPIL) rose 0.88%. The company announced that the company and its international subsidiaries have received new orders worth Rs 1,011 crore.

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