The Indian stock market started the week on a strong note, as both major indices, SENSEX and NIFTY50, registered notable gains on December 23, 2024. Encouraging global cues and a surge in metal stocks contributed to the positive momentum.
Positive Global Cues Drive Early Market Rally
At 9:28 AM, the S&P BSE SENSEX was up by 483 points, or 0.62%, trading at 78,524.92. Meanwhile, the NSE NIFTY50 index surged by 146 points, or 0.62%, reaching 23,733.45.
The strong opening came amid positive global market trends, with major international indices gaining ground. The global sentiment was bolstered by stable economic data from the U.S. and Europe, as well as a rally in oil prices.
The broader market followed suit, with 37 of the 50 components of the NIFTY50 index advancing, while only 13 declined. This broad-based rally indicated widespread investor confidence across sectors.
Sectoral Performance: Metal Stocks Lead
A standout performer on Monday was the metal sector, with stocks in the space registering substantial gains. The Indian government recently initiated a probe into the surge in imports of certain steel flat products, following a complaint from the Indian Steel Association. This investigation spurred buying in steel companies, which further lifted the sector.
JSW Steel, Tata Steel, and Steel Authority of India (SAIL) were among the top gainers. JSW Steel surged by 2%, reaching ₹935.45 per share, while Tata Steel was up 2% at ₹143.42. SAIL also saw a 1.5% rise, trading at ₹117.94. The NIFTY METAL index itself was up by 0.86%, trading at 8,888.80 levels, with 10 out of its 15 constituents in the green.
The strong performance of metal stocks, particularly steel, is expected to continue as investors closely monitor the ongoing investigation.
Top Performers and Decliners in NIFTY50
Out of the 50 NIFTY50 stocks, the top gainers included JSW Steel, HDFC Bank, Shriram Finance, Hindalco, and Bajaj Finance. These stocks saw a significant uptick, contributing to the overall market surge.
However, some stocks faced pressure, with the top losers including HDFC Life, SBI Life, NTPC, Eicher Motors, and Hero MotoCorp. Despite the overall positive sentiment, these stocks were impacted by sector-specific concerns or profit-taking.
Key Stocks to Watch:
- JSW Steel: +2%
- Tata Steel: +2%
- HDFC Bank: +1.5%
- Hindalco: +1.2%
- Bajaj Finance: +1%
Government’s Probe into Steel Imports
The investigation launched by the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, has sparked significant interest in the steel sector. The probe will focus on the imports of ‘Non-Alloy and Alloy Steel Flat Products,’ which are used in critical industries such as construction, automotive, and electrical panels.
This investigation is part of ongoing efforts to protect India’s domestic steel industry from unfair trade practices. The outcome could have lasting implications on import levels, as well as the profitability of major steel producers in the country.
Broader Market Sentiment
While the market is seeing a positive start, analysts caution that volatility may continue due to global uncertainties and domestic factors such as inflation and interest rate concerns. Investors are advised to remain cautious, particularly in sectors vulnerable to global disruptions.
Nevertheless, with positive cues from global markets and continued buying in sectors like metals, the outlook for the Indian market appears optimistic in the near term.
