Markets end higher for third straight day

In yet another rangebound session, Indian equity benchmarks ended on a positive note, extending the winning run for third consecutive session on Thursday, helped by a rally in global markets after lower-than-expected consumer inflation in the US ignited hopes of more rate cuts by the Federal Reserve. Indian indices opened higher and traded in positive throughout the session as sentiments remained positive after rating agency CRISIL stated that India will see a five-fold growth in green investments to Rs 31 lakh crore between 2025 and 2030. It said this is a crucial part of an estimated $10-trillion investments needed through 2070 to achieve the country's net-zero goals as per the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.  Additionally, favourable developments in the Israel-Hamas ceasefire and a reduced India's trade deficit further boosted the upward movement. 

Some of the important factors for the markets:

India poised to become world's 4th largest economy by 2026: Industry body PHDCCI said India is poised to become the fourth-largest economy in the world by 2026, overtaking Japan. The industry body forecasted Gross Domestic Product (GDP) growth of 6.8 per cent for the current financial year ending March 2025 and a robust 7.7 per cent growth for FY26, driven by strong macroeconomic fundamentals and policy reforms. 

Global economic conditions to weaken in 2025, India’s strong growth continues: The World Economic Forum (WEF) in its report said a majority of chief economists worldwide expect weaker global economic conditions in 2025 but India is likely to maintain a strong growth despite signs of some momentum being lost. 

Falling US Treasury yield further boosted investor sentiments: The 10-year Treasury yield dropped after data showing a slowdown in the annual rate of core consumer prices growth in the U.S. in December helped ease concerns about US Fed's interest rate trajectory.  

Rupee resumed downtrend against US dollar: Indian rupee resumed downtrend against US dollar, depreciated by 20 paise at 86.61 (provisional), dragged down by a strong American currency overseas, elevated crude oil prices and foreign fund outflows.

Global front: European markets were trading higher as benign U.S. inflation readings kept the door open for potential rate cuts by the Federal Reserve this year. However, regional gains were capped by weaker-than-expected U.K. GDP data. The U.K. economy expanded slightly in November after two consecutive contractions, the Office for National Statistics reported. Asian markets settled mostly higher on Thursday as soft inflation readings from the U.S. spurred expectations for more Fed rate cuts this year. 

Finally, the BSE Sensex rose 318.74 points or 0.42% to 77,042.82, and the CNX Nifty was up by 98.60 points or 0.42% to 23,311.80.     

The BSE Sensex touched high and low of 77,319.50 and 76,895.51 respectively. There were 20 stocks advancing against 10 stocks declining on the index.           

The broader indices ended in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 1.43%.

The gaining sectoral indices on the BSE were PSU up by 1.87%, Industrials up by 1.73%, Metal up by 1.63%, Telecom up by 1.61% and Capital Goods up by 1.56%, while IT down by 0.62%, FMCG down by 0.43%, TECK down by 0.21% and Consumer Durables down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 2.03%, SBI up by 1.64%, Bajaj Finserv up by 1.47%, Bharti Airtel up by 1.46% and Tata Motors up by 1.43%. On the flip side, HCL Technologies down by 1.87%, Nestle down by 1.38%, Infosys down by 1.21%, Hindustan Unilever down by 1.15% and ITC down by 1.01% were the top losers.

Meanwhile, the Ministry of Commerce and Industry has said that department for Promotion of Industry and Internal Trade (DPIIT) recognised startups have created over 16.6 lakh direct jobs across various sectors from 2016 to October 31, 2024, significantly contributing to employment generation in the country. 

According to data released by the ministry on the completion of Nine Years of Startup India, the IT Services industry leads with 2.04 lakh jobs, followed by Healthcare and Lifesciences with 1.47 lakh jobs, and Professional and Commercial Services with around 94,000 jobs. It stated that the number of DPIIT-recognised startups has grown from around 500 in 2016 to 1,59,157 as of January 15, 2025. India has firmly established itself as the third-largest startup ecosystem in the world. This vibrant ecosystem, driven by over 100 unicorns, continues to redefine innovation and entrepreneurship on the global stage.

Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have led this transformation, while smaller cities have increasingly contributed to the nation’s entrepreneurial momentum. Moreover, it said  startups in fintech, edtech, health-tech, and e-commerce have tackled local challenges and gained global recognition. As of October 31, 2024, a total of 73,151 recognised startups include at least one woman director, showcasing the rise of women entrepreneurs in India. On January 16, 2025, India marks nine years of Startup India, a transformative journey that began in 2016.

The CNX Nifty traded in a range of 23,391.65 and 23,272.05. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 7.99%, Bharat Electronics up by 3.60%, SBI Life Insurance up by 2.89%, Shriram Finance up by 2.58% and Adani Ports & SEZ up by 2.23%. On the flip side, Trent down by 2.51%, Dr. Reddy's Lab down by 2.26%, HCL Technologies down by 1.95%, Tata Consumer Products down by 1.84%, and Infosys down by 1.52% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 73.67 points or 0.88% to 8,374.80, France’s CAC rose 137.97 points or 1.81% to 7,612.56 and Germany’s DAX gained 25.28 points or 0.12% to 20,599.96.

Asian markets settled mostly higher on Thursday tracking Wall Street gains overnight as soft US inflation print spurred expectations for more Fed rate cuts this year. Japanese shares gained, while the Japanese yen surged to hit a one-month high on potential Japanese interest rate hikes next week. Chinese shares rose ahead of GDP data for the final quarter and other key economic indicators due on Friday. Seoul shares ended up as the Bank of Korea surprised markets by keeping its benchmark policy rate at 3% after two consecutive rate cuts in the fourth quarter of last year.