| The domestic equity benchmarks ended with major losses, impacted by worries over disappointing corporate earnings, uncertainty around U.S. trade policy, and persistent foreign outflows. The Nifty dropped around the 22,850 mark. All the sectoral indices on the NSE ended in the red, with media, IT and metal shares declining the most.
As per provisional closing, the barometer index, the S&P BSE Sensex, tumbled 824.29 points or 1.08% to 75,366.17. The Nifty 50 index declined 263.05 points or 1.14% to 22,829.15.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.68% and the S&P BSE Small-Cap index slipped 3.51%.
The market breadth was weak. On the BSE, 597 shares rose and 3,519 shares fell. A total of 118 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.28% to 18.13.
Economy:
India’s forex reserves dropped by $1.88 billion to $623.983 billion in the week ended January 17, the RBI said on Friday.
The forex reserves had increased to an all-time high of $704.885 billion in end-September.
For the week ended January 17, foreign currency assets, a major component of the reserves, decreased by $2.878 billion to $533.133 billion, the data released on Friday showed.
Gold reserves increased by $1.063 million to $68.947 billion during the week. The special drawing rights (SDRs) were up by $01 million to $17.782 billion, the RBI said.
India’s reserve position with the IMF was down by $74 million at $4.122 billion in the reporting week, the data showed.
Buzzing Index:
The Nifty Media index slipped 4.73% to 1,565.65. The index tumbled 6.74% in two consecutive trading sessions.
Saregama India (down 7.55%), Tips Music (down 7.16%), Zee Entertainment Enterprises (down 7.01%), Den Networks (down 6.43%), Dish TV India (down 4.75%), Nazara Technologies (down 4.5%), Network 18 Media & Investments (down 4.11%), PVR Inox (down 2.76%), Hathway Cable & Datacom (down 1.78%) and Sun TV Network (down 1.3%) declined.
Stocks in Spotlight:
ICICI Bank added 1.53% after the bank’s standalone net profit increased 14.81% to Rs 11,792.42 crore on 13.03% rise in total income to Rs 48,367.87 crore in Q3 FY25 over Q3 FY24.
JSW Steel declined 1.43% after the company reported a 70.65% decline in consolidated net profit to Rs 719 crore in Q3 FY25 compared with Rs 2,450 crore in Q3 FY24. Revenue from operations declined 1.32% YoY to Rs 40,793 crore during the quarter.
IDFC First Bank tumbled 8.85% after the bank’s standalone net profit declined 52.57% to Rs 339.43 crore in Q3 FY25 as against Rs 715.68 crore posted in same quarter previous year.
DLF added 1.15% after the company’s consolidated net profit surged 61.24% to Rs 1,058.73 crore on a 5.72% rise in total income to Rs 1,737.47 crore in Q3 FY25 over Q3 FY24.
Yes Bank rallied 1.37% after the company reported a 164.52% surge in standalone net profit to Rs 612.27 crore in Q3 FY25 as against Rs 231.46 crore posted in Q3 FY24. The bank’s total income jumped 14.20% YoY to Rs 9,341.15 crore in the quarter ended 31 December 2024.
Interglobe Aviation (Indigo) rose 0.29%. The company reported an 18.3% decline in consolidated net profit to Rs 2,448.8 crore in Q3 FY25 compared with Rs 2,998.1 crore in Q3 FY24. Revenue from operations jumped 13.7% to Rs 22,110.70 crore in Q3 FY25 compared with Rs 19,452.15 crore in Q3 FY24.
LT Foods declined 4.68% after the company’s consolidated net profit declined 4.76% to Rs 145.38 crore in Q3 FY25, compared with Rs 152.64 crore in Q3 FY24. Revenue from operations increased 17.15% to Rs 2,274.81 crore in Q3 FY25, compared with Rs 1,941.72 crore in Q3 FY24.
Torrent Pharmaceuticals rallied 2.48% after the company’s consolidated net profit increased 13.5% to Rs 503 crore in Q3 FY25 as against Rs 443 crore posted in Q3 FY24. Revenue from operations grew 2.6% year on year (YoY) to Rs 2,762 crore in the quarter ended 31 December 2024.
Refex Industries rallied 3.72% after the company’s consolidated net profit surged 196.27% to Rs 50.04 crore in Q3 FY25, compared with Rs 16.89 crore in Q3 FY24. Revenue from operations stood at Rs 717.12 crore in Q3 FY25, steeply higher than Rs 305.98 crore posted in Q3 FY24.
NTPC Green Energy declined 3.48%. The company reported a 18% jump in consolidated net profit to Rs 65.61 crore in Q3 FY25 as against Rs 55.61 crore posted in Q3 FY24. Revenue from operations grew by 13.2% YoY to Rs 505.08 crore in the quarter ended 31 December 2024.
Balkrishna Industries fell 3.02%. The company reported a standalone net profit of Rs 439.39 crore in Q3 FY25, registering a growth of 42.16% compared with Rs 309.09 crore posted in Q3 FY24. Revenue from operations jumped 11.44% to Rs 2,540.57 crore in the quarter ended December 2024 as compared with Rs 2,279.76 crore posted in the same period last year.
Central Depository Services (India) (CDSL) tanked 10.49% after the company’s consolidated net profit declined 19.85% to Rs 129.80 crore on 13.7% fall in revenue from operations to Rs 278.10 crore in Q3 FY25 over Q2 FY25.
Global Markets:
The US Dow Jones index futures were currently down by 414 points, signaling a weak opening for US stocks today.
European stocks declined as traders in the region prepared for a busy earnings season and awaited the European Central Bank's upcoming interest rate decision.
Asian stocks closed mixed on Monday as China's industrial profits rose 11% year on year in December. However, investors also turned their attention to the unexpected contraction in the country's factory activity, as the official Purchasing Managers' Index (PMI) for January dropped to 49.1.
Former President Donald Trump decided to impose tariffs and sanctions on Colombia for hindering U.S. immigration policies. The dollar also edged higher as markets awaited the Federal Reserve’s interest rate decision and key inflation data later this week. Trading in Asia may see heightened volatility as major markets prepare to shut mid-week for the Lunar New Year holiday.
On Sunday, Trump announced sanctions and steep tariffs on Colombia after its President, Gustavo Petro, refused to allow U.S. repatriation flights carrying deported individuals to land. Trump declared an immediate 25% tariff on all Colombian imports, escalating to 50% next week. Additionally, the U.S. imposed a travel ban and revoked visas for Colombian officials and affiliates. Trump also hinted at potential tariffs on Mexico, Canada, China, and the European Union by February 1.
U.S. stocks ended lower on Friday as investors digested mixed economic data and corporate earnings. The Dow Jones Industrial Average slipped 0.32%, the S&P 500 closed flat, and the Nasdaq Composite dropped 0.5%.
Tech earnings remain critical for global equities, with particular focus on artificial intelligence (AI). China's AI startup DeepSeek has unveiled its latest model, R1, rivaling leading U.S. systems like OpenAI’s ChatGPT at a fraction of the cost. This development challenges industry giants like NVIDIA, which saw its stock decline in response.
The Federal Reserve is widely expected to hold interest rates steady at the conclusion of its two-day meeting on Wednesday, pausing the rate-cutting cycle initiated in September. Key data points this week include the Fed’s preferred inflation gauge—the Personal Consumption Expenditures (PCE) Price Index—and fourth-quarter GDP estimates. Weekly jobless claims for December and January’s consumer confidence figures are also on the radar. |