BAROMETERS DRIFT LOWER; BREADTH WEAK

The headline equity benchmarks traded with modest losses in early trade. The Nifty slipped below the 24,450 mark. All the sectoral indices on the NSE were traded in red.

At 09:29 IST, the barometer index, the S&P BSE Sensex, declined 425.72 points or 0.52% to 80,864.24. The Nifty 50 index dropped 111.05 points or 0.45% to 24,437.65.

In the broader market, the S&P BSE Mid-Cap index fell 0.49% and the S&P BSE Small-Cap index declined 0.60%.

The market breadth was weak. On the BSE, 1,081 shares rose and 1,792 shares fell. A total of 112 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,560.01 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,646.65 crore in the Indian equity market on 12 December 2024, provisional data showed.

Economy:

India`s Consumer Price Index (CPI) inflation for the month of November 2024 eased to 5.48% as against 6.21% in October 2024. Retail inflation has fallen within the Reserve Bank of India�s target range of 2-6%.

The Index of Industrial Production saw a growth rate of 3.5% in October 2024, as against 3.1% in September.

Stocks in Spotlight:

Ashok Leyland shed 0.04%. The company has bagged an order for supplying 1,475 BSVI Diesel Fuel Type Passenger Bus Chassis for total consideration of Rs 345.58 crore to Tamil Nadu State Transport Corporation (TNSTC).

Tata Motors rose 0.15%. The company will increase the prices up to 2% across its trucks and buses portfolio, effective 1st January 2025. The price increase is to offset the rise in input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of trucks and buses.

JK Tyre advanced 1.67% after the company secured a euro 30 million long-term loan from DEG � Deutsche Investitions- und Entwicklungsgesellschaft. The funding will support the sustainable expansion of the company�s production capacities at its facility in Madhya Pradesh, India. The new loan will help to continue this transformation, for example by allowing the boiler for the expansion facility to be operated using biomass rather than coal.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.89% to 6.845 as compared with previous close 6.718.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.8400, compared with its close of 84.8875 during the previous trading session.

MCX Gold futures for the 5 February 2024 settlement rose 0.17% to Rs 78,084.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.12% to 107.08.

The United States 10-year bond yield rose 0.14% to 4.332.

In the commodities market, Brent crude for February 2024 settlement added 01 cents, or 0.01% to $73.42 a barrel.

Global Markets:

Asian equities traded mixed on Friday, with investors taking a cautious stance ahead of the Federal Reserve`s upcoming policy meeting next week.

China`s top leaders have announced plans for further stimulus measures to bolster the country`s economy. This decision, made during the annual meeting of the Chinese Communist Party and the cabinet, involves increasing the budget deficit, borrowing more, and lowering interest rates. This aggressive approach is a departure from previous years of weaker growth and declining consumer demand. The government aims to maintain economic growth and stability in employment and prices for the upcoming year.

US stocks closed lower on Thursday as Treasury yields climbed following a hotter-than-expected inflation report. The Dow Jones Industrial Average fell 0.53%, the S&P 500 index lost 0.54%, and the NASDAQ Composite index declined 0.65%.

While US consumer price index data released on Wednesday was largely in line with expectations, producer prices rose more than anticipated in November, increasing 0.4% last month, ahead of the expected 0.2% gain. In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October. This suggests underlying inflationary pressures may persist.

Adobe Systems Incorporated stock plummeted over 14% after the software giant issued a disappointing annual sales outlook. The company`s recent efforts to incorporate artificial intelligence into its offerings appear to be taking longer than expected to generate significant returns.

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