Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets—both in India and globally.
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Market Overview
Tracking weak US market closing overnight, Nifty opened with a gap-down of 85 points at 23,560.60 and remained bearish in the first hour, hitting a low of 23,460.45, primarily due to weakness in IT stocks. After reaching the day’s low, the market steadily recovered over the next three hours, testing the 23,600 level. Following a period of consolidation near these levels, Nifty touched the day’s high of 23,689.85 around 2 PM. Subsequently, it traded within a narrow 40-point range between 23,630 and 23,670 before closing nearly flat at 23,644.90.
Broader Market Performance:
Although the headline indices closed flat, the broader market displayed encouraging trends, with 1,779 stocks advancing, 1,050 declining, and 73 remaining unchanged.
Sectoral Performance:
The sectoral performance showed mixed trends, with Nifty Energy and Pharma emerging as the top gainers, rising by 1.02% and 0.73%, respectively. On the other hand, the IT sector faced the steepest declines, driven by concerns over uncertainty in the US and weak US market performance yesterday.
Note: The above numbers for Commodity futures were taken around 5 pm.
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 2nd January:
- The maximum Call Open Interest (OI) is observed at 24,000, followed by 23,900, while the maximum Put Open Interest (OI) is at 23,500, followed by 23,200.
- Immediate support is identified around 23,500, with additional support in the 23,300–23,400 region. On the upside, resistance is noted at 23,900 and 24,000, with the 23,800–23,900 range being a key area to watch.
Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.
Source: Sensibull
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. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard.
What’s happening in India
Unimech Aerospace made a strong debut today, listing at ₹1,491 on the BSE with an 89.9% premium and ₹1,460 on the NSE with an 86% premium against an issue price of ₹785. The stock closed at ₹1,376.25, up 75.32%.
India’s external debt rose by $29.6 billion in the July-September 2024 period, reaching $711.8 billion, with the debt-to-GDP ratio increasing to 19.4%. The US dollar-denominated debt made up 53.4% of the total. Loans remained the largest component at 33.7%, while short-term debt decreased to 18.8% of total external debt. The increase was partly offset by a $6.7 billion valuation effect due to the depreciation of the US dollar. Dive deeper
ITC Ltd.'s hotels arm will receive ₹1,500 crore in cash and cash equivalents upon its demerger, effective January 1, 2025. Shareholders will receive one share of ITC Hotels for every 10 shares of ITC held on the record date, January 6. ITC will retain a 40% stake, with the remaining held by shareholders. Dive deeper
ITD Cementation India Limited has secured a new marine contract worth Rs 1,648 crore (excluding GST) for the construction of Near Shore Reclamation and Shore Protection for the Greenfield Vadhvan Port in Dahanu, Maharashtra. Dive deeper
IDBI Bank Ltd, in its meeting held on December 31, 2024, approved the issuance of Long-Term Bonds for financing Infrastructure and Affordable Housing. The total value of the bonds is set at Rs 210,000 crore, to be issued in tranches, with Rs 25,000 crore to be raised by March 31, 2025, and the balance in FY 2025-26. Dive deeper
RBI has approved Rajat Verma as the new CEO of DBS Bank India, succeeding Surojit Shome on February 28, 2025. Verma currently heads the Institutional Banking Group. Dive deeper
Mahindra Lifespace Developers Ltd. invested Rs. 126 crore in Mahindra Industrial Park Chennai Ltd. through a rights issue, subscribing to 12.6 million equity shares and maintaining its 60% stake. The funds will support the industrial park’s expansion in Tamil Nadu, developed in partnership with Sumitomo Corporation. Dive deeper
India’s gross non-performing assets (GNPA) dropped to a 12-year low of 2.6% in September 2024, with net NPAs at 0.6%, driven by lower slippages, higher write-offs, and steady credit demand, according to the RBI’s Financial Stability Report. Profitability improved, supported by strong capital buffers and better asset quality. Dive deeper
Mazagon Dock Shipbuilders Ltd. signed a ₹1,990 crore contract with the Ministry of Defence to construct and integrate an Air Independent Propulsion (AIP) Plug into conventional submarines. The project, expected to be delivered in 42 months, aims to enhance submarine endurance with DRDO-developed technology. Dive deeper
KPI Green Energy Ltd. has received CEIG approval for 28.28 MW solar power projects under the Captive Power Producer (CPP) segment, executed for KPI Green Energy Ltd. and its subsidiary KPIG Energia Pvt. Ltd. Dive deeper
Rail Vikas Nigam Ltd. (RVNL) has emerged as the lowest bidder for East Coast Railway’s ₹404 crore Koraput-Singapur Road Doubling Project. The contract includes constructing 27 major bridges, earthwork, and protection works, with a completion timeline of 30 months. Dive deeper
Adani Green Energy announced that CEO Amit Singh will step down in March 2025 and transition to another role within the Adani Group. Ashish Khanna, currently CEO of Adani’s International Energy Business, will assume the position effective April 1, 2025. Dive deeper
Hindalco has received a vesting order for the Meenakshi Coal Mine in Odisha, with production expected by 2028, pending approvals. With a capacity of 12 million tonnes annually, the mine aims to reduce costs, enhance energy self-sufficiency, and create around 16,000 jobs. Dive deeper
India received a record $129.1 billion in remittances in 2024, accounting for 14.3% of global flows. This share was double that of Mexico, the second-largest recipient. Remittances, forming 3.3% of India’s GDP, continue to outpace Foreign Direct Investment (FDI) and official development assistance (ODA) in many developing economies. Dive deeper
SpiceJet plans to resume discussions with Boeing to restart pending deliveries of its B737 Max aircraft from a 2017 order. The airline aims to operationalize 30 grounded planes over the next 12-15 months, supported by ₹800 crore from its recent ₹3,000 crore fundraising. Three restored aircraft are expected to rejoin operations by April 2025. Dive deeper
What’s happening globally
China’s Manufacturing PMI fell to 50.1 in December 2024, below expectations of 50.3, indicating slower growth. While new orders and buying activity improved, foreign demand, employment, and business confidence weakened. Dive deeper
European natural gas futures rose to €48 per megawatt-hour, the highest in four weeks, amid supply concerns and rising demand from colder weather. The upcoming halt of Russian gas flows through Ukraine and increased competition from Asia are adding pressure, keeping prices volatile despite Europe’s diversification efforts. Dive deepe
Brent crude oil futures rose to $74.5 per barrel, driven by signs of recovery in China’s economy. However, concerns over supply, geopolitical risks, and policy uncertainty keep the market outlook cautious. Dive deeper
Gold crossed $2,600 per ounce in 2024, marking its best annual performance since 2010, driven by U.S. monetary easing, geopolitical tensions, and central bank purchases. Dive deeper
Turkey’s trade deficit rose to $7.46 billion in November 2024 from $5.97 billion a year earlier, as exports fell by 3.1% and imports grew by 2.7%. Germany remained the top export destination, while Russia and China were the largest import sources. Dive deeper
Nvidia has completed its $700 million acquisition of Israeli AI firm Run:ai after receiving EU antitrust approval. Despite initial concerns, regulators found no competition risks. Run:ai plans to open-source its software, broadening its availability across the AI ecosystem. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Pankaj Mohindroo, the chairman of the India Cellular and Electronics Association on PM Modi’s $500-Billion Target For Electronic Manufacturing by 2030
“When the PM sets a target, it’s not angling anymore,” “The target reminds me of the famous song ‘You take my breath away’,”
The industry is already working “furiously” to meet this ambitious goal, with a strategic plan set to be unveiled within the next two months - Link
Uday Kotak, Founder & Director, Kotak Mahindra Bank on his year-end musings
- Go for growth. Let’s get enterprise and animal spirits firing.
- ROTI is Return on time invested. Go relentlessly for productivity.
- Shun protectionism. It may benefit in the short term. Long term it makes us uncompetitive.
- We need a plan to eliminate the current account deficit in a reasonable time.
- Increase investment in defense. Power is power. Safety is a prerequisite for prosperity.
- Continue with gentle and steady fiscal consolidation from here.
- Avoid over-regulation and micro-management across sectors. Zero accident policy is a high risk to growth.
- Respect free and fair markets. Intervene only if there is evidence of bubbles or manipulation.
- India has 1.4 billion people. Let many flowers bloom.
- We must get out of having amongst the most polluted cities in the world. Let us walk the talk. - Link
Calendars
In the coming days, we have the following major events and corporate actions:
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.
