Markets likely to get flat-to-positive start tracking gains in global peers

Indian markets snapped a five-day losing streak and bounced back smartly on Monday, with the Nifty closing around 23,750 led by realty, banking, and metal names. Today, the markets are likely to get flat-to-positive start tracking gains in global peers. Some support will come as retail inflation for farm workers and rural labourers dipped to 5.35 per cent and 5.47 per cent in November compared to 5.96 per cent and 6 per cent, respectively, in October this year. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) registered an increase of 5 points each in November 2024, reaching levels of 1,320 and 1,331, respectively. Traders may take note of Saurabh Garg, secretary, Ministry of Statistics and Programme Implementation’s statement that India needs to leverage data and make data-driven decisions if it wants to achieve a higher rate of growth. Besides, the Government of India and the Asian Development Bank (ADB) has signed a $500 million (about Rs 4,250 crore) loan to support green and sustainable infrastructure projects aligned with the country's climate commitments. Insurance industry stocks will be in focus as the Irdai's annual report stated that net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52 per cent during 2023-24 as against 82.95 per cent in the preceding fiscal year. According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (Irdai), during 2023-24, the non-life insurance industry underwrote a total direct premium of Rs 2.90 trillion in India registering a growth of 12.76 per cent from previous year. There will be some buzz in sugar stocks with a private report that sugarcane yields in India are declining due to last year's drought and this year's excessive rains, which could reduce the country's sugar production below consumption levels for the first time in eight years. The report said lower-than-expected output by the world's second-largest sugar producer could eliminate the possibility of India allowing exports in the current season ending in September 2025, supporting global sugar prices. Meanwhile, Primary market action will keep investors busy today.  Among the mainboard IPOs, Ventive Hospitality IPO, Senores Pharmaceuticals IPO, Carraro India IPO will close for subscription today.

The US markets ended higher on Monday driven by strength in technology names. Asian markets are trading mostly in green on Tuesday tracking the overnight gains on Wall Street.

Back home, Indian equity benchmarks snapped five-day losing streak and ended on strong note on Monday driven by positive global cues and strong performances by financials and heavyweights. Indian equities started the session on a firm note and extended gains as the day progressed as traders took support as India has made significant progress in technology and innovation, securing the 49th rank in the Network Readiness Index 2024 (NRI 2024), an improvement of 11 places compared to last year. This year, the country not only climbed the rankings but also improved its overall score to 53.63, reflecting its consistent efforts in advancing technology, research, and digital infrastructure. However, markets trimmed some of their initial gains in late afternoon trade as traders turned cautious with latest data by the Reserve Bank of India showing that India’s foreign exchange reserves fell by $1.9 billion to $653 billion, around six months low, in the week ended December 13. The reserves fell to their lowest since June 28. Some concern also came with Monetary Policy Committee (MPC) Member Nagesh Kumar’s statement that the ongoing economic slowdown in the country has become serious enough to demand immediate policy attention. Advocating for 25 basis points (bps) cut in the repo rate during the December MPC meeting, he highlighted the urgent need to address the dual challenges of declining growth and inflationary concerns. But markets regained some traction and managed to close the day in firm green, taking support from private report that India is finalising its trade strategy with the United States as Donald Trump prepares to return to office as President. The government is consulting with industry to identify export priorities, referred to as ‘offensive asks’, while keeping all options open, including a potential mini-trade deal and a response to Trump’s anticipated trade retaliation. Finally, the BSE Sensex rose 498.58 points or 0.64% to 78,540.17, and the CNX Nifty was up by 165.95 points or 0.70% to 23,753.45.