Benchmarks trade flat in morning deals

Indian equity benchmarks erased initial gains and were trading flat in morning deals as traders turned cautious ahead of the monthly F&O expiry.  Trading volumes remained subdued due to year-end holidays as investors wrapped books for the year. Some concern came as net foreign direct investment (FDI) into the country has slowed considerably, with latest data released by the Reserve Bank of India (RBI) in its December bulletin showing that it decelerated to $2.1 billion during April-October 2024 from $7.7 billion a year ago, majorly due to the rise in repatriation and net outward FDI. Besides, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,454.21 crore on Tuesday, according to exchange data. However, traders took some support with a Reserve Bank of India (RBI) bulletin released showing that the Indian economy is recovering from the slowdown in momentum witnessed in the September quarter, driven by strong festival activity and a sustained upswing in rural demand. On the global front, Asian markets are trading mixed following the lack of cues from global markets overnight as they were closed for Christmas holiday and the thin trading with some markets in the region closed in the holiday-shortened week. 

The BSE Sensex is currently trading at 78519.99, up by 47.12 points or 0.06% after trading in a range of 78463.33 and 78898.37. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.49%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were PSU up by 0.45%, Oil & Gas up by 0.43%, Auto up by 0.31%, Energy up by 0.27% and Bankex up by 0.22%, while Realty down by 0.73%, Basic Materials down by 0.38%, Healthcare down by 0.36%, IT down by 0.33% and Consumer Durables down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.23%, Adani Ports &SEZ up by 0.80%, Mahindra & Mahindra up by 0.70%, SBI up by 0.57% and Bharti Airtel up by 0.54%. On the flip side, Zomato down by 0.86%, Asian Paints down by 0.83%, TCS down by 0.57%, Tech Mahindra down by 0.49% and Titan Company down by 0.39% were the top losers.

Meanwhile, the Ministry of Labour and Employment in its latest data has showed that the Employees’ Provident Fund Organisation (EPFO) recorded a net addition of 13.41 lakh members in October 2024. EPFO enrolled around 7.50 lakh new members in October 2024. This rise in new memberships can be attributed to growing employment opportunities, increased awareness of employee benefits, and EPFO’s successful outreach programmes.

A significant highlight of the data is the dominance of the 18-25 age group, which accounts for 58.49 per cent of the total new members added during October 2024. The net payroll data for the 18-25 age group in October 2024 stood at 5.43 lakh. This aligns with previous trends, which indicate that most individuals joining the organised workforce are young, primarily first-time job seekers.

The payroll data also revealed that around 12.90 lakh members exited and subsequently rejoined EPFO. This reflects year-over-year growth of 16.23 per cent compared to October 2023. These members switched jobs and rejoined establishments under EPFO’s ambit, opting to transfer their accumulations rather than applying for final settlement. This decision helps safeguard their long-term financial well-being while extending social security protection.

A gender-wise analysis of the payroll data showed that around 2.09 lakh of the new members added during the month were female. This figure represents a year-over-year growth of 2.12 per cent compared to October 2023. Additionally, the net female member addition for the month stood at approximately 2.79 lakh, highlighting a broader shift towards a more inclusive and diverse workforce.

The CNX Nifty is currently trading at 23731.50, up by 3.85 points or 0.02% after trading in a range of 23729.05 and 23854.50. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 1.55%, BPCL up by 1.20%, Maruti Suzuki up by 1.06%, Adani Ports &SEZ up by 0.98% and Coal India up by 0.86%. On the flip side, Asian Paints down by 0.91%, Trent down by 0.84%, Britannia Industries down by 0.65%, TCS down by 0.56% and Tech Mahindra down by 0.46% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 428.52 points or 1.1% to 39,558.95, Taiwan Weighted added 40.05 points or 0.17% to 23,260.18 and Shanghai Composite strengthened 2.06 points or 0.06% to 3,395.41. On the flip side, KOSPI dropped 8.91 points or 0.37% to 2,431.61 and Straits Times fell 7.86 points or 0.21% to 3,761.69.