Sensex starts 2024 on tepid note: Nifty gains, Sensex inches up; focus shifts to Q3 earnings

Mumbai (Maharashtra) [India], January 1 : The Indian equity markets experienced a mixed start to the new year as benchmarks closed the Monday trading session with minor losses.
The NSE Nifty 50 managed to rise 10.50 points (0.21 per cent) to settle at 21,741.90, while the BSE Sensex recorded a marginal gain of 31.68 points (0.04 per cent) to reach 72,271.94.
Smallcap and Midcap stocks took the lead in driving gains in broader indices, while the Bank Nifty index dipped 0.12 per cent, settling at 46,841.25.
The day's sectoral performance revealed outperformance in the media and PSU Bank sectors, contributing to the gains. However, Auto and Financial Services stocks faced declines.
Notable gainers for the day included Nestle India, Adani Enterprises, Adani Ports and SEZ, Coal India, and Tech Mahindra, while Eicher Motors, Bharti Airtel, Mahindra & Mahindra, Bajaj Auto, and Hindalco lagged.
The Indian Volatility Index (India VIX) closed up by 1.22 per cent, reflecting some volatility in market sentiment.
In Nifty weekly contracts, the highest open interest was observed at 22000 for Calls and 21500 for Puts.
Monthly contracts showed the highest open interest at 22000 for Calls and 21000 for Puts.
Notable new open interest was observed at 23000 for Calls and 18300 for Puts in weekly contracts, and at 22200 for Calls and 21400 for Puts in monthly contracts.
Foreign Institutional Investors (FIIs) showed increased activity, raising future index long positions by 3.08 per cent, future index shorts by 3.19 per cent, and significantly boosting positions in index options - 83.90 per cent in Call longs, 58.47 per cent in Call shorts, 60.52 per cent in Put longs, and 41.99 per cent in Put shorts.
The GIFT Nifty on the NSE IX experienced a marginal decline of 0.03 per cent, shedding 5.50 points and settling at 21,839 in the early hours of Monday, signalling a subdued start for Dalal Street.
Despite concluding 2023 with a five-day winning streak, profit-booking in select heavyweights led to a modest setback.
The Nifty 50 and Sensex wrapped up at 21,731.40 and 72,240.26, respectively. The Sensex's notable 20 per cent gain marked its second-best performance since 2017. Small- and mid-cap indices outperformed, posting gains of 55.62 per cent and 46.57 per cent, respectively.
As the new year kicks off, investor attention shifts to the upcoming Q3 earnings season for FY24, with a focus on reports from IT companies expected in early January.
Varun Aggarwal, founder and managing director of Profit Idea, emphasised the significance of the Q3 earnings season, stating that it would significantly influence market movement.
Varun Aggarwal, founder and managing director, Profit Idea said, "The upcoming Q3 earnings season for FY24, especially reports from IT companies in early January, will significantly influence market movement. Additionally, investors will closely monitor inflation data, the interim Union Budget for FY25, RBI policy, economic growth, and the trajectory leading up to the General Election in 2024".
Investors will also closely monitor factors such as inflation data, the interim Union Budget for FY25, RBI policy decisions, economic growth, and the trajectory leading up to the General Election in 2024.
In the precious metals market, gold witnessed appreciation, closing at USD 2,062.9 per ounce, while silver moderated and concluded at USD 23.8 per ounce in dollar terms.
On the MCX, gold futures rose by 0.4 per cent, reaching Rs 63,203 (per 10 grams), while silver futures experienced a decline of 1.3 per cent, settling at Rs 74,430 (per kg).
WTI crude prices traded at USD 71.65, reflecting a 0.17 per cent decline, and Brent crude prices stood at USD 77.08, down 0.09 per cent on Monday morning.
The US Dollar Index (DXY) gained 0.10 per cent, reaching 101.33, providing insights into the dollar's performance against a basket of six foreign currencies.
As the first trading week of 2024 unfolds, market participants will closely monitor economic indicators and events shaping market sentiment in the coming months, both domestically and globally.
The early market movements set the tone for the week ahead, with a keen eye on various factors that will influence investor sentiment in the new year.