Nifty ends the first week of 2025 near 24,000; Markets remain balanced
Welcome to the weekly edition of the Aftermarket Report, a newsletter where we do a quick weekly wrap-up of what happened in the markets—both in India and globally.
Catch “Who Said What”, a weekly show where we'll pick fascinating comments from notable figures, break them down, and explore the broader stories behind them.
Market Overview this week
Nifty began the week on a weaker note, closing the year at 23,645. However, it started the first two days of the new year with a strong rally, gaining nearly 600 points, before ending the week on a softer note at 24,004.75, up by 0.8%. The gains were primarily driven by robust monthly updates from the auto sector, which helped boost sentiment across the board.
This week, the consumer durables and auto sectors emerged as the top gainers, supported by better-than-expected business updates. On the other hand, Nifty Realty declined by 2.45%, while Bank Nifty ended the week down by 0.63%.
With Foreign Institutional Investors (FIIs) returning from their holidays and the quarterly results for October to December 2024 set to begin on January 9, the market is at a critical juncture. The next two weeks will likely define the market's trading range ahead of the highly anticipated Union Budget.
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market.
What happened in India?
Adani Enterprises signed an agreement to exit its joint venture with Wilmar International, Adani Wilmar Ltd. The $2 billion deal aimed to support growth in Adani's core infrastructure sectors and was expected to close by March 31, 2025. Dive deeper
UltraTech Cement Limited approved the acquisition of up to 3.70 crore equity shares of Star Cement Limited, representing an 8.69% stake, at up to Rs. 235 per share. The acquisition of a non-controlling minority stake was set to be completed within a month. Dive deeper
A gas leak occurred at Gujarat Fluorochemicals' CMS-1 plant in Dahej, Gujarat, on December 28, tragically claiming four lives, including one employee and three contractors. Operations at the plant were temporarily disrupted. Dive deeper
Bharat Petroleum Corporation Limited (BPCL) diversified its crude sources from Russia to the Middle East, including Oman, Argentina, and Qatar, and planned to expand refinery capacity with a ₹1.7 trillion investment over the next five years. Dive deeper
Reliance Industries Limited acquired Karkinos Healthcare, a technology-driven oncology platform, for Rs 375 crore through its subsidiary, making Karkinos a wholly-owned subsidiary and enhancing cancer care services. Dive deeper
Shares of Ola Electric declined after the resignations of its Chief Technology and Product Officer and Chief Marketing Officer, impacting the company's stock performance. Dive deeper
Vodafone Group cleared a significant debt amounting to Rs 11,650 crore, releasing a pledge on almost its entire stake in Vodafone Idea and freeing 22.56% of the company’s share capital. Dive deeper
India's external debt increased by $29.6 billion in the July-September 2024 period to $711.8 billion, with the debt-to-GDP ratio rising to 19.4%. The increase reflected a higher share of US dollar-denominated debt despite a valuation effect from the dollar's depreciation. Dive deeper
India's gross non-performing assets (GNPA) fell to a 12-year low of 2.6% in September 2024, with net NPAs at 0.6%, reflecting improved bank health supported by strong capital buffers and better asset quality. Dive deeper
Adani Green Energy announced that CEO Amit Singh would step down in March 2025. Ashish Khanna was set to succeed him on April 1, 2025, as CEO of Adani's International Energy Business. Dive deeper
India received a record $129.1 billion in remittances in 2024, accounting for 14.3% of global flows, demonstrating the significant economic impact of remittances compared to Foreign Direct Investment and official development assistance. Dive deeper
The Union Cabinet approved a ₹3,500 per metric tonne subsidy for DAP fertiliser, effective January 1, 2025, and increased funding for Pradhan Mantri Fasal Bima Yojana to promote innovation and technology in agriculture. Dive deeper
The RBI was to sell state bonds worth Rs 4.73 lakh crore in the January-March 2025 quarter for state governments and union territories, with detailed auction schedules announced. Dive deeper
India's GST collections in December 2024 reached Rs 1.77 trillion, reflecting a 7.3% year-on-year increase, driven by domestic transactions and rising GST from imports, despite a substantial rise in refunds. Dive deeper
Hyundai Motor India Limited reported record domestic sales for CY 2024, with significant contributions from its CRETA model and a growing share of CNG vehicles, reflecting strong market performance. Dive deeper
Shares of Indian Renewable Energy Development Agency rose after a significant increase in loan disbursements and growth in sanctioned loans, highlighting the company's expanding financial activities. Dive deeper
Maruti Suzuki India Limited reported robust sales in December 2024, with notable increases in domestic sales, exports, and contributions from different vehicle segments, indicating strong market demand. Dive deeper
India's manufacturing sector saw a decline in factory activity in December, reaching a 12-month low, indicating slower expansion despite continued growth above the expansion threshold. Dive deeper
Hindustan Zinc reported record production levels in mined and refined metal for 9MFY25, despite a decrease in silver production, emphasizing its operational efficiency and commitment to sustainability. Dive deeper
Eicher Motors' shares soared to a 52-week high after strong December sales figures for Royal Enfield motorcycles, highlighting significant growth in domestic and export markets. Dive deeper
Avenue Supermarts Ltd. reported a significant rise in Q3 FY2024 revenue, leading to a substantial stock price increase, underscoring strong investor confidence in the company's financial performance. Dive deeper
India's banking system entered a liquidity deficit in December 2024 for the first time since June, despite efforts to maintain stable borrowing costs through strategic central bank actions. Dive deeper
India's forex reserves declined sharply as of December 27, 2024, mainly due to a decrease in Foreign Currency Assets, while gold reserves increased, according to the latest RBI data. Dive deeper
What happened across the globe?
Eurozone bank shares were poised for their best year-end since 2010, with a more than 20% rise in the Euro Stoxx Banks index, buoyed by strong profits despite lower interest rates, supported by effective hedging strategies. Dive deeper
Global corporate debt issuance reached a record $8 trillion this year, fueled by strong investor demand and favourable borrowing conditions, with significant activity in corporate bonds and leveraged loans. Dive deeper
The UK government imposed a 20% VAT on private school tuition fees starting January 1, 2025, aiming to raise over £1.5 billion for public education and hire 6,500 new teachers by 2030. Dive deeper
China's Manufacturing PMI fell to 50.1 in December 2024, signalling slower growth amid weakening foreign demand and employment, despite slight improvements in new orders and buying activity. Dive deeper
European natural gas futures rose to €48 per megawatt-hour due to supply concerns and increased demand from colder weather, with potential impacts from the halt of Russian gas flows through Ukraine. Dive deeper
Nvidia completed its acquisition of Israeli AI firm Run:ai for $700 million after receiving EU antitrust approval, with plans to open-source its AI software to broaden its ecosystem. Dive deeper
Russian gas flows to the EU ceased on January 1, 2025, following the expiration of the transit deal with Ukraine, affecting EU gas imports and potentially increasing reliance on LNG imports. Dive deeper
South Korea's exports surged to a 31-month high in December 2024, driven by robust global demand for semiconductors, despite a slight decline in vehicle exports, culminating in a record annual export figure. Dive deeper
Alibaba Cloud aggressively cut prices for its AI model, intensifying competition in China's AI market and marking its third price reduction in 2024, reflecting strategic pricing adjustments to gain market share. Dive deeper
Eurozone manufacturing activity contracted further in December, with widespread industrial downturns affecting major economies, contrasting with Spain's robust expansion. Dive deeper
New unemployment claims in the U.S. dropped to their lowest since April 2024 last week, indicating a strong labour market and aligning with positive economic indicators that support sustained growth. Dive deeper
China expanded its consumption subsidies to include personal electronic devices like smartphones and tablets, aiming to boost domestic spending amid external economic challenges. Dive deeper
Calendars
In the coming week, We have the following quarterly results and other major events:
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.
We’re now on Telegram, follow us for interesting updates on what’s happening in the world of business and finance. Join the conversation on today’s market action here.