The key equity benchmarks continued to trade with moderate gains in the mid-morning trade as investors viewed the recent selloff as unjustified. Wall Street closed mixed, and the dollar index eased from recent highs, raising hopes of slower foreign outflows from emerging markets. However, concerns over weak earnings, US-China trade tensions, and a slowing Chinese economy persist. The Nifty scaled above the 22,950 level. Private bank shares rallied after declining in the past three consecutive trading sessions.
At 11:30 IST, the barometer index, the S&P BSE Sensex, advanced 601.78 points or 0.88% to 75,967.95. The Nifty 50 index added 140.35 points or 0.61% to 22,969.50.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 1.43% and the S&P BSE Small-Cap index slipped 3.55%.
The market breadth was weak. On the BSE, 683 shares rose and 3,070 shares fell. A total of 137 shares were unchanged.
Buzzing Index:
The Nifty Private Bank index added 1.53% to 23,995.30. The index rose 0.12% in the past three consecutive trading sessions.
IDFC First Bank (up 3.21%), Axis Bank (up 3.06%), HDFC Bank (up 2.99%), IndusInd Bank (up 2.08%) and ICICI Bank (up 2.03%), RBL Bank (up 1.29%) advanced.
On the other hand, Federal Bank (down 5.29%), Bandhan Bank (down 1.14%) and City Union Bank (down 0.65%) edged lower.
Stocks in Spotlight:
Bajaj Housing Finance advanced 2.13% after the company reported 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.
Emami rose 0.88%. The company's consolidated net profit increased 8% to Rs 279 crore in Q3 FY25 as compared with Rs 258 crore in Q3 FY24. Revenue rose 5.3% YoY to Rs 1,049 crore during the quarter.
Azad Engineering declined 8.74%. The company said that it has secured a purchase order from Bharat Heavy Electrical (BHEL) for the supply of advanced, high-complex rotating airfoils for supercritical turbines.
Global Markets:
The US Dow Jones index futures were currently down by 119 points, signaling a negative opening for US stocks today.
Asian stocks were mixed on Tuesday, 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.
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