| The key equity benchmarks ended with substantial gains on Tuesday, breaking a two-day losing streak, following the Reserve Bank of India's announcement of several measures to boost liquidity in the banking system. The Nifty closed above the 22,950 mark.
Realty, financial services and PSU bank shares advanced while pharma, healthcare and media stocks corrected.
As per provisional closing, the barometer index, the S&P BSE Sensex, surged 535.24 points or 0.71% to 75,901.41. The Nifty 50 index advanced 128.10 points or 0.56% to 22,957.25.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.61% and the S&P BSE Small-Cap index slipped 1.77%.
The market breadth was weak. On the BSE, 1,310 shares rose and 2,663 shares fell. A total of 111 shares were unchanged.
Economy:
The Reserve Bank of India on Monday said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system. As part of measures to manage liquidity conditions, the central bank also announced a USD/INR buy/sell swap auction of USD 5 billion for a period of six months to be held on January 31, 2025. To inject liquidity, RBI said open market operations (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 60,000 crore in three tranches of Rs 20,000 crore each will be held on January 30, February 13, and February 20.
Buzzing Index:
The Nifty Realty index rallied 2.17% to 862.90. The index shed 0.14% in two consecutive trading sessions.
Sobha (up 7.23%), DLF (up 3.25%), Godrej Properties (up 3.13%), Macrotech Developers (up 2.49%) and Prestige Estates Projects (up 2.19%), Phoenix Mills (up 2.05%), Mahindra Lifespace Developers (up 1.4%) advanced.
On the other hand, Raymond (down 0.91%), Oberoi Realty (down 0.72%) and Brigade Enterprises (down 0.39%) edged lower.
Stocks in Spotlight:
Cipla rallied 2.16% after the pharma major’s consolidated net profit jumped 48.73% to Rs 1,570.51 crore in Q3 FY25 as against Rs 1,055.90 crore reported in Q3 FY24. Total revenue from operations grew by 7.10% year on year (YoY) to Rs 7,072.97 crore in the quarter ended 31 December 2024.
Union Bank of India rallied 4.73% after the company’s standalone net profit jumped 28.24% to Rs 4,603.63 crore in Q3 FY24 as compared with Rs 3589.91 crore posted in corresponding quarter last year. Total income increased 7.68% YoY to Rs 31,374.50 crore in Q3 FY25.
Tata Steel rose 1.82%. The company’s consolidated net profit declined 43.4% to Rs 295 crore in Q3 FY25 as compared with Rs 522 crore in Q3 FY24. Revenue from operations fell 5% YoY to Rs 32,760.45 crore
Coal India declined 1.19% after the company reported a 17.04% decrease in consolidated net profit to Rs 8,505.57 crore in Q3 FY25 from Rs 10,253.48 crore in Q3 FY24. Revenue from operations fell 1.03% to Rs 35,779.78 crore in the third quarter of FY25 from Rs 36,153.97 crore recorded in the same period last year.
Bajaj Housing Finance advanced 5.01% after the company reported a 25.41% rise in net profit to Rs 548.02 crore on a 25.82% increase in revenue from operations to Rs 2,448.98 crore in Q3 FY25 as compared with Q3 FY24.
Kaynes Technology India dropped 11.44% after the company revised its revenue growth guidance for the current fiscal year downwards.
The company reported a strong 47% jump in net profit to Rs 66.5 crore in the December quarter (Q3FY25) from Rs 45.2 crore in the same period last year. Revenue grew by nearly 30% to Rs 661.2 crore in Q3FY25, up from Rs 509.30 crore in the corresponding quarter of the previous year.
However, the management lowered its revenue guidance for FY25 to Rs 2,800 crore from the earlier target of Rs 3,000 crore.
TVS Motor Company gained 4.85% to Rs 2,334.95 after its standalone net profit rose 4.24% to Rs 618.48 crore on 10.33% increase in revenue from operations to Rs 9,097.05 crore in Q3 FY25 over Q3 FY24.
Apar Industries was locked in a lower circuit of 20% after its consolidated net profit declined 19.6% to Rs 174.92 crore in Q3 FY25 as against Rs 217.57 crore posted in a similar quarter the previous year. Revenue from operations rose 17.66% year on year (YoY) to Rs 4,716.42 crore in the quarter ended 31 December 2024.
Emami added 3.76% after the company’s consolidated net profit jumped 7.03% to Rs 278.98 crore on a 5.34% increase in revenue from operations to Rs 1,049.48 crore in Q3 FY25 over Q3 FY24.
Federal Bank declined 3.98% after the private lender’s standalone net profit decreased 5.1% to Rs 955.44 crore in Q3 FY25 from Rs 1,006.74 crore posted in same quarter last year. However, total income increased 38.13% year on year (YoY) to Rs 7,724.90 crore in the December 2024 quarter.
Global Markets:
The US Dow Jones index futures were currently up by 23 points, signaling a positive opening for US stocks today.
European shares gained on Tuesday recovering from a global sell-off, triggered by concerns that a potential artificial intelligence breakthrough in China could present a significant challenge to Western AI companies.
Asian stocks ended mixed, following a sharp decline on Wall Street. Fears of overvalued artificial intelligence (AI) companies triggered the sell-off after a Chinese startup, DeepSeek, released a cost-effective AI model, raising concerns about the sustainability of current valuations.
Many Asian markets, including China and South Korea, were closed for the Lunar New Year holiday.
On Monday, the S&P 500 and Nasdaq 100 plummeted 1.46% and 3.07%, respectively. The Dow Jones Industrial Average, however, gained 0.65%, reaching a one-month high.
The US dollar strengthened against all Group-of-10 currencies after the President announced plans to impose tariffs on foreign-produced semiconductors, pharmaceuticals, and certain metals to incentivize domestic manufacturing.
Leading AI companies experienced significant losses. NVIDIA, a prominent figure in the AI boom, saw a nearly 17% drop in its stock price. Advanced Micro Devices (AMD) declined by 6.4%. Broadcom Inc. and Oracle Corporation also suffered substantial losses, falling by 17.4% and 14%, respectively.
DeepSeek, a Chinese AI startup, recently unveiled its latest model, R1. This model is claimed to be comparable in performance to leading US models like OpenAI's ChatGPT but at a considerably lower cost. DeepSeek was founded by Liang Wenfeng, the head of High Flyer, an AI-driven quantitative hedge fund. The company focuses on developing open-source AI models, allowing the wider developer community to inspect and improve the software.
DeepSeek's mobile app surged to the top of the US iPhone download charts shortly after its release in January. |