Stock Market Recap: Nifty 50 Faces Downward Trend Amidst Sectoral Shifts
The Indian stock market, represented by Nifty 50, witnessed a downward trend in yesterday’s trading session. Notably, the auto and private bank sector stocks experienced the most significant decline, while pharma and healthcare stocks emerged as the top gainers.
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Global Markets Echo Red, US Markets Closed for New Year’s Day
Following suit, other Asian markets, excluding South Korea, also closed in the red. Similarly, all European markets, with the exception of Switzerland, recorded losses. The US markets remained closed due to New Year’s Day celebrations.
Top Gainers and Losers in NIFTY 50
The top gainers in NIFTY 50 included Adani Ports, Divi’s Labs, Sun Pharma, Coal India, and Cipla. On the flip side, Eicher Motors, M&M, UltraTech, L&T, and Kotak Mahindra were among the top losers.
Key Developments in the Financial Landscape
1. ‘UPI for Secondary Market’ Beta Phase Launched: On January 1, 2024, the beta phase of ‘UPI for Secondary Market’ was launched, allowing investors to directly purchase stocks using their bank accounts.
2. CDSL Circular Impact: A recent CDSL circular, effective from December 30, stated that off-market transactions would be considered for execution only if the Demat Account of the Buyer is added as a Beneficiary under the Demat Account of the Seller.
3. Windfall Profit Tax Hike on Crude Oil: India increased the windfall profit tax on crude oil from Rs 1,300 to Rs 2,300 per tonne.
4. Income Tax Returns and Economic Indicators: By December 31, 2023, 8.18 crore Income Tax Returns (ITRs) were filed, marking a 9% year-on-year increase. India’s sugar production witnessed a 7.6% year-on-year decline, while tea production fell by 6.18% in November 2023.
Stocks in Focus
1. HUL Faces GST Demands: Hindustan Unilever (HUL) received GST demands and penalties amounting to Rs 447.5 crore from authorities in five different states.
2. Godrej Properties’ Land Acquisition: Godrej Properties acquired a 4-acre land in Bengaluru for the development of a high-end residential project.
3. EaseMyTrip’s Fundraising Plan: EaseMyTrip announced plans to raise a maximum of Rs 1,000 crore through a preferential issue.
4. Eicher Motors’ GST-related Notices: Eicher Motors received demand notices exceeding Rs 130 crore from three authorities concerning GST-related matters.
5. Airtel’s Stake Acquisition: Airtel’s subsidiary, Bharti Airtel Services, is set to acquire a 97.1% stake in Beetel Teletech.
6. Coal India’s Production Increase: Coal India reported an 8.27% increase in production to 71.86 million tonnes in December 2023.
Market Indicators
1. One Day Change in Precious Metals and USD-INR: Gold witnessed a 0.20% increase, silver rose by 0.52%, and USD-INR saw a 0.12% uptick.
2. US Markets on Holiday: Dow Jones and Nasdaq were closed due to the New Year’s Day holiday.
Long-Term Returns
Over the past 20 years, the Sensex in India has delivered an annualized return of 13.20%, while Nifty has provided a return of 12.81% per annum.
Note: Dow Jones and Nasdaq data were not available due to the holiday.
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