The key domestic indices traded with moderate losses in the afternoon trade, following weak cues from Asian markets. This decline was driven by heightened concerns over a potential broader trade war, particularly after US President Donald Trump imposed tariffs on Canada, Mexico, and China. The Nifty traded below the 23,350 mark.
Oil & gas, metal and FMCG shares tumbled while IT and consumer durables shares advanced.
At 12:25 IST, the barometer index, the S&P BSE Sensex, declined 346.44 points or 0.45% to 77,163.13. The Nifty 50 index fell 147.25 points or 0.63% to 23,334.90.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1.29% and the S&P BSE Small-Cap index lost 1.84%.
The market breadth was weak. On the BSE, 1,070 shares rose and 2,837 shares fell. A total of 169 shares were unchanged.
Economy:
India's forex reserves increased $5.574 billion to $629.557 billion in the week ended January 24, the Reserve Bank of India said on Friday (January 31). In the previous reporting week, the overall kitty had dropped $1.888 billion to $623.983 billion.
Meanwhile, the budget announcement of zero tax for earnings up to Rs 12 lakh per annum and the rejig of tax slabs across the board should prompt more than 90% of individual taxpayers to embrace the new tax regime as compared to the about 75% as of now, CBDT Chairman Ravi Agrawal said on Sunday.
Agrawal said the government's and the Income-Tax Department's philosophy and approach is to ensure a non-intrusive tax administration in the country through an enhanced usage of artificial intelligence (AI) apart from the regular human intelligence gathering mechanism. The CBDT chief said the tax processes available to a common taxpayer for reporting their income were not very complex, giving examples of the simplified ITR-1, pre-filled income tax returns, automatic computation of tax deducted at source (TDS), etc. available to them.
The government has announced a Rs 47,000 crore disinvestment target for the fiscal year 2026, according to budget documents. However, the government has revised its disinvestment estimate for the current fiscal year (FY25) downwards. Revised estimates now project proceeds of Rs 33,000 crore, lower than the initial budget estimate of Rs 50,000 crore. The government anticipates increased revenue from public sector dividends. Projections for FY26 indicate dividends of Rs 69,000 crore, exceeding both the FY25 budget estimate of Rs 56,260 crore and the revised estimate of Rs 55,000 crore. The projected FY26 figure also surpasses the Rs 65,381.65 crore collected in FY24.
Finance Minister Nirmala Sitharaman unveiled a Rs 11.21 lakh crore capital expenditure (capex) target for the fiscal year 2026 during her budget presentation on Saturday. While the FY25 budget allocated Rs 11.1 lakh crore for capex, revised estimates project spending of only Rs 10.18 lakh crore, a shortfall of approximately Rs 93,000 crore. The revised estimate for the FY25 fiscal deficit stands at 4.8% of GDP. Sitharaman explained that the shortfall stemmed from the general election cycle, which effectively paused project implementation for two to three months.
Despite the current year's dip, the FY26 capex target represents a 10% increase compared to the budgeted figure for FY25. When including government grants to states, the total projected capex expenditure for FY26 rises to Rs 15.5 lakh crore.
Gainers & Losers:
Bajaj Finance (up 4.03%), Mahindra & Mahindra (up 2.96%), ITC Hotels (up 2.31%), Wipro (2.13%), Eicher Motors (up 2.13%) were the major Nifty gainers.
Larsen & Toubro (down 4.86%), Bharat Electronics (down 4.47%), Oil & Natural Gas Corporation (ONGC) (down 4.45%) Bharat Petroleum Corporation (BPCL) (down 3.74%) and Coal India (down 3.43%) were the major Nifty losers.
Eicher Motors added 2.13% after the company's VE Commercial Vehicles (VECV) reported a 20.14% year on year growth in commercial vehicles (CV) sales to 8,489 units in January 2025.
Stocks in Sotlight:
Hero MotoCorp fell 2.87%. The company reported a 2.14% increase in total sales, reaching 442,873 units in January 2025, compared to 433,598 units in January 2024.
Neogen Chemicals rallied 4.78% after the company's consolidated net profit stood at Rs 10.01 crore in Q3 FY25, steeply higher than Rs 1.06 crore in Q3 FY24. Revenue from operations jumped 22.49% YoY to Rs 201.43 crore during the quarter.
Aarti Industries declined 2.45% after the company reported 62.9% decline in consolidated net profit to Rs 46 crore in Q3 FY25 as against Rs 124 crore posted in similar quarter last year. However, revenue from operations (gross) increased 7.73% year on year (YoY) to Rs 2,035 crore in the third quarter of FY25.
Atul Auto shed 0.19%. The company has reported 8.68% rise in total auto sales to 2,772 units in January 2025 from 2,313 units in January 2024.
Anant Raj declined 6.42%. The real estate developer has reported 53.58% jump in consolidated net profit to Rs 110.32 crore in Q3 FY25 from Rs 71.83 crore in Q3 FY24. Revenue from operations jumped 36.29% to Rs 534.64 crore in the third quarter of FY25, compared with Rs 392.27 crore posted in the same period last year.
Global Market:
The US Dow Jones index futures were currently down by 622 points, signaling a potential weak opening for US equities in the upcoming trading session.
European and Asian market declined on Monday as US President Donald Trump's tariffs on Canada, Mexico, and China triggered fears of a broad trade war and hit global growth.
Meanwhile, China's Caixin manufacturing PMI grew 50.1 in January, below the prior month's reading of 50.5.
The Trump administration announced new tariffs on imports from Mexico, Canada, and China, starting Saturday. These tariffs are partly in response to illegal fentanyl distribution. Potential tariffs include 25% on Mexican and Canadian imports, 10% on Chinese goods, and future tariffs on chips, oil, gas (possibly by February 18th), steel, aluminum, and copper. Trump insists these tariffs are unavoidable and will generate substantial revenue, even hinting at possible European tariffs. He contrasted the US's historical reliance on tariffs with its current dependence on income tax. All three countries decried the tariffs and vowed retaliation.
The news caused US stock market declines on Friday. At the close in NYSE, the Dow Jones Industrial Average fell 0.75%, while the S&P 500 index declined 0.5%, and the NASDAQ Composite index declined 0.28%.
Apple shares closed lower as the broader market selloff erased earlier gains. The company expects sales growth in the low- to mid-single digits for its fiscal second quarter, easing concerns about flagship handset sales, which slightly missed estimates in the holiday season. CEO Tim Cook remains optimistic, citing Apple Intelligence (AI features) as a driver of future sales.
Exxon Mobil stock fell 2.5%, despite exceeding fourth-quarter profit expectations. Higher oil and gas production helped offset lower crude prices and weaker refining margins.
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