Indexes of benchmarks Due to large losses in PSU bank and real estate companies, the Nifty and Sensex had a muted start to the week. All sectors saw negative trading during the gap-down start as a number of domestic and international concerns continued to affect market mood.
With Asia-Pacific markets opening down after Friday’s US jobs report crushed expectations for early Federal Reserve rate reduction, global cues further soured the mood. The pressure was increased by the fact that Wall Street’s major indexes reported consecutive weekly losses. The Indian rupee, which opened at a record low of Rs 86.18 versus the dollar, is under more stress as a result of the increasing dollar index, which is currently at its highest level since 2022.
The Nifty was down 246.35 points, or 1.05 percent, at 23,185.15 at around 9:20 am, while the Sensex was down 798.34 points, or 1.03 percent, at 76,580.57. Approximately 1,941 shares fell, 172 shares remained steady, and 737 shares increased.
The market is still strained, and selling pressure is present even in little pullbacks. Unpredictable market fluctuations are probably going to get worse when the earnings season begins, according to Religare Broking Senior Vice President Ajit Mishra. “Traders are encouraged to consider rebounds as shorting opportunities if there are no obvious indications of a trend reversal, especially in the banking index. “With an emphasis on strong risk management, caution should continue to be a top priority,” he continued.
The market is still strained, and selling pressure is present even in little pullbacks. Unpredictable market fluctuations are probably going to get worse when the earnings season begins, according to Religare Broking Senior Vice President Ajit Mishra. “Traders are encouraged to consider rebounds as shorting opportunities if there are no obvious indications of a trend reversal, especially in the banking index. “With an emphasis on strong risk management, caution should continue to be a top priority,” he continued.
He went on to say that stock-specific opportunities could arise from earnings announcements. While broader markets and other sectors are likely to continue to face pressure, the IT, FMCG, and some pharmaceutical industries seem to be comparatively resilient.
The negative trend was followed by the mid- and small-cap indices in the overall market, which began the day with losses of 0.8 and 1 percent, respectively. As experts point to a mixed bag of valuations—some offering appealing prospects, while others seem stretched—market investors are now paying particular attention to this segment’s earnings season. The Nifty Midcap and Smallcap indices rose more than 20 percent apiece in 2024, greatly outpacing the Nifty’s 9 percent increase in the same time frame. This indicates that mid- and small-cap companies were the real stars of the year.
The majority of the losses were close to 1 percent, and all sectoral indexes finished in the red. As mood was affected by poor Q3 business updates from a few banks, Nifty Realty took the brunt of the losses, plunging more than 2 percent, while the Nifty PSU Bank index fell 1.5 percent, continuing its four-day losing streak. Selling pressure also affected metal equities, with Tata Steel, JSW Steel, and Vedanta seeing the worst drops. Nifty IT fared somewhat better, slipping 0.4 percent, while the Nifty Auto, FMCG, and Bank indices fell between 0.7 and 1 percent.
Following a poor earnings report for the quarter that ended in December, brokerages downgraded their recommendations and dropped their target prices on the company, causing DMart shares, which were trading at a high level in the morning, to drop more than 2 percent. For the December 2024 quarter, Avenue Supermarts recorded a 4.9 percent growth in consolidated net profit, which came to Rs 723.54 crore. In the same quarter, it declared a net profit of Rs 690 crore.
After the US Food and Drug Administration certified the arm of Biocon Biologics’ insulin facility in Malaysia, ending a significant bottleneck for the firm, Biocon shares increased by more than 3% on January 13. The Malaysian plant was designated as a “Voluntary Action Indicated” (VAI) by the US drug authority, allowing the business to proceed with filing items from that facility.
Following the signing of a Share Purchase Agreement with Enel Green Power Development S.r.l. to purchase a 100% stake in Enel Green Power India for Rs 792 crore, Waaree Energies’ shares increased by 2%. Enel Green Power India is the Indian division of Enel Green Power Development, one of the biggest renewable energy firms in Europe.
Following a poor start, the Nifty can find support between 23,200, 23,000, and 22,800. The rising side may see early resistance at 23,500, followed by 23,600 and 23,800, according to Choice Broking’s derivative analyst Hardik Matali. The Bank Nifty’s indicators suggest that it could find support at 48,400, 47,900, and 47,500. The first major resistance level, 48,800, would be followed by 49,400 and 50,000 if the index continued to rise, he continued.
The top Nifty gainers were Britannia Industries, Maruti Suzuki, HCL Tech, IndusInd Bank, and Shriram Finance. The main laggards were Bharat Electronics, SBI Life Insurance, M&M, Apollo Hospital, and BPCL.
