Sensex, Nifty kick-off 2024 on a flat note; GSFC, JBM Auto jump up to 13%

Domestic equity markets kicked-off 2024 on a muted note and ended flat on Monday. Headline indices rebounded sharply from the initial cuts but settled mildly up, erasing the majority of their gains. The traders were looking for decisive direction amid the absence of any definite cues, following the new year vacation across the globe.

For the day, BSE's Sensex added 31.68 points, or 0.04 per cent, to settle at 72,271.94. NSE's Nifty50 edged up 10.50 points, or 0.05 per cent, to end the day at 21,741.90. Broader markets outperformed the headline peers as BSE midcap index rose half a per cent, while BSE smallcap index gained three-fourth per cent. Fear gauge spiked more than a per cent to 14.68-mark.

The Indian equity markets kicked off the year 2024 with a subdued performance. Despite volatile trading conditions and mild selling pressure, the domestic equity benchmarks Nifty50 and Sensex managed to close slightly higher, said Shrey Jain, Founder and CEO at SAS Online.

"From a technical standpoint, the Nifty is showing resilience by holding the 21,600-21,500 zone in the event of a dip during consolidation. The strategic target for the market remains at 22,200," he said.

On a sectoral front, the Nifty media index gained about 2 per cent, whereas the Nifty oil & gas gained and PSU bank indices gained about a per cent each. The Nifty IT and FMCG added half a per cent each. Among the laggards, the Nifty auto, financial services, private bank and consumer durables indices ended in red.

In the Nifty50 pack, Nestle India rose about 3 per cent, while Adani Enterprises and Adan Ports & Special Economic Zone rose about 2 per cent. Tata Motors and Tech Mahindra were the other key gainers for the day. Among the laggards, Eicher Motors declined about 3 per cent, while Bharti Airtel and Mahindra & Mahindra shed 2 per cent each.

Market exhibited strength led by optimism on rate cuts, easing global inflation, and softer bond yields. But profit booking was visible at higher levels as lingering concerns over Red Sea disruptions pose short-term risks to global supply chains and freight costs, said Vinod Nair, Head of Research at Geojit Financial Services.

"The spotlight of this week is also on FOMC minutes which will provide an insight for 2024 rate cut. Momentum in mid & small caps remains strong, buoyed by a positive macro-outlook however private banks experienced a reversal trend," he said.

A total of 4,047 shares were traded on BSE on Monday, of which 2,541 settled with gains. 1,351 stocks ended the session with cuts while 155 shares remained unchanged. During the day, 514 shares hit their upper circuit, whereas 183 shares tested the lower circuit levels for the day.

In the broader markets, Gujarat State Fertilizers & Chemicals gained more than 13 per cent, while JBM Auto rose about 11 per cent for the day. Sun Pharma Advanced Research Company and KIOCL gained 7 per cent. Among the laggards, Sandur Manganese & Iron Ores declined more than 5 per cent, while Fiem Industries, BBTC and Arvind declined about 4 per cent each.

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