Sensex, Nifty Open Flat as RBI Maintains Rates; Banking Stocks Lead Gains Amid Mixed Market Trends
Stock markets opened flat on Monday following the RBI’s decision to hold interest rates steady in its recent monetary policy meeting. The S&P BSE Sensex inched up by 37.49 points to 81,746.61, and the NSE Nifty50 gained 21.45 points to reach 24,699.25 at 9:25 AM.
Dr. V.K. Vijayakumar from Geojit Financial Services described the short-term market trend as “mildly bullish,” led by banking sector gains. Key performers included Larsen & Toubro, up 1.69%, and SBI Life Insurance, which rose 1.14%. On the other hand, Hindustan Unilever fell 3.53%, and Tata Consumer Products dropped 3.48%.
He also noted the influence of foreign institutional investors (FIIs) and robust momentum in the U.S. markets as positives but cautioned about India’s slowing economy and high valuations. The Nifty Midcap 100 rose 0.33%, while the India VIX volatility index climbed 2.97%, reflecting cautious optimism among investors.
India’s largest e-commerce platform, Flipkart, valued at $36 billion, is reportedly planning an IPO within the next 12–15 months, aiming for a listing by late 2025 or early 2026. The Walmart-backed giant recently received internal approvals to shift its domicile from Singapore to India, a critical step in its IPO strategy. This move aligns with the trend of domestic listings by companies like PhonePe and Zepto, driven by attractive valuations and investor familiarity.
In 2024, Flipkart raised nearly $1 billion, including $350 million from Google. It also expanded into quick commerce with its “Minutes” delivery service and Myntra's 30-minute “M-Now” fashion deliveries. Additionally, the launch of its UPI app, Super.money, reflects its diversification into payments and advertising.
As India’s e-commerce leader, Flipkart retained a dominant share in the Rs 1 trillion festive season sales of 2024, showcasing the sector’s robust growth despite competition from Amazon.
Paytm shares climbed 3.1% to a 52-week high of Rs 1,007 on December 9, following the approval of its Singapore subsidiary, One97 Communications Singapore, to sell Stock Acquisition Rights (SARs) in Japan's PayPay Corporation to SoftBank Vision Fund 2 for Rs 2,364 crore. This marks a 225% increase from its 52-week low of Rs 310 in May 2023, although it remains 114% below its IPO price.
The company announced that proceeds of JPY 41.9 billion (Rs 2,364 crore) would boost consolidated cash reserves, supporting future initiatives. Despite the transaction, Paytm will continue to provide technology and product innovation to PayPay.
Paytm’s stock performance has been impressive, gaining 9% in five days, 20% in a month, and delivering a 153% six-month return. Year-to-date, it’s up 52%. In comparison, the Nifty 50 index grew 13% year-to-date, underscoring Paytm’s strong market recovery.
Passenger vehicle (PV) sales in November experienced a notable 14% year-on-year decline, largely attributed to subdued wedding-related demand following record-breaking October sales driven by festive purchases. The anticipated surge from nearly 4.8 million weddings across November and December fell short of expectations.
Two-wheeler sales saw a modest 16% rise, while tractor sales recorded a strong 29.88% year-on-year growth, reflecting robust rural demand. Three-wheelers managed a 4.23% increase, but commercial vehicle (CV) sales dropped by 6% year-on-year and 16% month-on-month.
Inventory levels for PVs improved slightly, decreasing by 10 days, but remained high at 65–68 days. Dealers cited weak market sentiment, limited new launches, and the shift of festive demand to October as key challenges. While heavy discounts and year-end promotions may revive interest, many consumers deferred purchases, awaiting new-year models. Automakers like Maruti Suzuki, Hyundai, and Tata Motors saw sales declines of 16%, 14%, and 23%, respectively, signaling a cautious outlook.
