Stock markets off to weak start on first day of trade of 2024

Mumbai, Equity benchmark indices declined in early trade on Monday, the first trading day of the New Year 2024, amid profit-taking after the recent sharp rally and lack of trends from global markets. In 2023, the BSE benchmark jumped 11,399.52 points or 18.73 per cent, and the Nifty climbed 3,626.1 points or 20 per cent.


On Monday, the 30-share BSE Sensex fell 207.29 points to 72,032.97 after a muted beginning. The Nifty declined 46.65 points to 21,684.75.


"As the New Year begins it is a Goldilocks scenario for the economy and markets. The growth momentum in the economy is strong. 7% GDP growth in FY24 is likely to be followed by around 6.7% growth in FY25 with decent corporate earnings growth. The banking system is in the pink of health and all macroeconomic indicators are stable. Political stability after the General elections looks almost certain,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Among the Sensex firms, Hindustan Unilever, Mahindra & Mahindra, Wipro, Axis Bank, Tata Consultancy Services, NTPC, HDFC Bank and Kotak Mahindra Bank were the major laggards.

Tata Motors, Nestle, IndusInd Bank and Power Grid were among the winners. Asian markets were closed on Monday for the New Year.

The US markets ended marginally lower on Friday.

Global oil benchmark Brent crude declined 0.14 per cent to USD 77.04 a barrel.

According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 1,459.12 crore on Friday.

The BSE benchmark fell 170.12 points or 0.23 per cent to settle at 72,240.26 on the last trading day of 2023 on Friday. The Nifty declined 47.30 points or 0.22 per cent to settle at 21,731.40.

Most experts however expect a correction in the stock markets this year due to stretched valuations. But they also insist that macroeconomic factors will continue to offer support to the benchmark indices.

“With macro-economic factors beginning to turn positive, falling US bond yields have once again fueled robust foreign fund inflows into the Indian market. Along with that, sliding crude oil prices is likely to keep inflation under check, all of which should augur well for Indian equity markets going ahead. Hence, the rally in the market is likely to further continue over the next 3-6 months and Sensex & Nifty could see another 5-7% appreciation while mid-cap & small-cap indices may witness another 10-15% jump. In times of correction, exposure to quality stocks in the above sectors would benefit investors,” said Rakeshh Mehta, Chairman of Mehta Equities.

(With inputs from PTI)