Although 2024 was stellar for both Technology and Communication Services, there were laggard industries within both sectors: IT Services lagged S&P Composite 1500 by 10% with a return of 14%; Media’s return was outright negative at –6%; there were winners within Materials too:… pic.twitter.com/0021olmzjh
— Liz Ann Sonders (@LizAnnSonders) January 7, 2025
The Indian stock market experienced a volatile session on Monday, with benchmark indices Sensex and Nifty ending flat amid concerns over corporate earnings and gains made by major companies such as Reliance Industries and Tata Consultancy Services (TCS). The NSE Nifty 50 index closed 0.05% higher at 17,141.75, while the S&P BSE Sensex ended 0.02% lower at 57,245.88. Gains in some heavyweight sectors helped offset broader market worries about potential disappointing earnings reports.
Despite broad-based sell-off in December, vast majority of global indices closed 2024 in black across asset classes; U.S. large caps reigned supreme, with S&P 500 soaring 25% in 2024 despite December’s 2.4% drop; outside U.S., China was best-performing major equity market with… pic.twitter.com/DA17kFk2gC
— Liz Ann Sonders (@LizAnnSonders) January 6, 2025
Reliance Industries, a conglomerate with interests in petrochemicals, refining, oil, telecommunications, and retail, saw its shares rise 1.2% following positive market sentiment around its anticipated quarterly performance. TCS also saw its shares gain, rising 0.9%, as the IT services giant continues to benefit from strong demand in the technology sector. However, shares of Dabur India Ltd and Hero MotoCorp Ltd fell, reflecting investor caution ahead of their upcoming earnings announcements.
Oil and Natural Gas Corporation Ltd also saw declines as investors remain wary about volatile commodity prices.
#MarketRadar | Gauging the market breadth amid volatility
How does the market setup look like amid the decline? Naveen Kulkarni of Axis Securities decodes the factors at play
Watch the full interview – https://t.co/AzLCwdVbpM@SrishtiSharma_ @IamAnkitaS_ pic.twitter.com/j6nW4Et9eO
— ET NOW (@ETNOWlive) January 8, 2025
The performance of the stock market is being closely watched as several companies are scheduled to release their quarterly earnings reports this week.
Markets flat amid earnings concerns
Analysts suggest that any significant deviation from expected results could lead to increased market volatility. The Indian rupee ended 13 paise lower at 85.85 per dollar on January 8, compared to the previous closing of 85.72. In corporate news, Bharti Airtel is expected to see a substantial increase in its dividend per share for fiscal year 2025.
HSBC projects a 114 percent rise, which will result in a dividend of Rs 17.1, compared to Rs 8 in FY24. Despite the overall flat closing, the market witnessed a sharp recovery from the day’s lows. According to Vatsal Bhuva, Technical Analyst at LKP Securities, the Nifty index is trading within a range of 23,500 to 24,200 and formed a hammer candlestick on the daily chart, closing near its 200-day EMA, thereby strengthening the 23,500 support level.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, highlighted that Nifty’s smart upside recovery from the lows after initially showing a deep cut early in the session suggests a potential trend reversal on the upside, especially if the Nifty sustains above the crucial 23,700 levels. Vinod Nair, Head of Research at Geojit Financial Services, noted that slowing economic growth projections and caution ahead of Q3 numbers added volatility to the market. However, recovery from the day’s low was driven by accumulation of beaten-down blue-chip stocks and expectations of government reforms in the upcoming budget.
