The domestic equity benchmarks ended lower on Friday, snapping a two-day winning streak. Selling pressure from foreign institutional investors (FIIs) and a strengthening US dollar weighed on investor sentiment. Further, mixed Q3 earnings results added to the market's weakness. The Nifty 50 index closed below the 23,100 mark, after hitting an intraday high of 23,347.30 in early afternoon trade. FMCG and IT shares witnessed gains. Oil & gas stocks were among the notable losers.
The S&P BSE Sensex declined 329.92 points or 0.43% to 76,190.46. The Nifty 50 index lost 113.15 points or 0.49% to 23,092.20. In two consecutive trading sessions, the Sensex and Nifty rose by 0.78% and 0.89%, respectively.
Mahindra & Mahindra (down 2.92%), Reliance Industries (down 1.42%) and HDFC Bank (down 0.92%) were major drags.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index dropped 1.60% and the S&P BSE Small-Cap index fell 2.23%.
The market breadth was weak. On the BSE, 1038 shares rose and 2902 shares fell. A total of 119 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 0.29% to 16.75.
Economy:
The HSBC Flash India Composite Output Index, which measures the month-on-month change in the combined output of India's manufacturing and service sectors, fell from a final reading of 59.2 in December to 57.9 in January. This indicated the weakest rate of expansion in 14 months. However, the headline figure remained well above its long-term average of 54.7.
While the slowdown at the composite level, driven by the service sector, was evident, there was a pickup in growth among goods producers. The HSBC Flash India Manufacturing PMI, a snapshot of factory business conditions based on new orders, output, employment, supplier delivery times, and stocks of purchases, rose from 56.4 in December to 58.0 in January, reflecting the best improvement in the sector's health since July 2024.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.45% to 6.834 as compared with previous close 6.845.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.2250, compared with its close of 86.4400 during the previous trading session.
MCX Gold futures for 5 February 2025 settlement rose 0.46% to Rs 79,958.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.62% to 107.48.
The United States 10-year bond yield fell 0.06% to 4.634.
In the commodities market, Brent crude for March 2025 settlement rose 30 cents or 0.38% to $78.59 a barrel.
Global Markets:
Most European shares advanced on Friday as US President Donald Trump called for lower interest rates and cheaper oil prices; additionally, investors are also likely to be looking ahead to the Fed's FOMC meeting on Wednesday with no change expected to interest rates.
Markets in Asia ended mixed as the Bank of Japan raised its key short-term interest rate to around 0.5%, the highest in 17 years, in an effort to further normalize its monetary policy as inflation remains within target levels.
Inflation in Japan stayed on track in December, supporting the case for the BoJ's expected interest rate hike. Core CPI, excluding volatile fresh food prices, rose 3% year-on-year, as widely expected. Headline CPI hit 3.6% y-o-y'a two-year high'up from 2.9% in November.
On the downside, Japanese manufacturing activity contracted further in January. The au Jibun Bank Manufacturing PMI dropped to 48.8 from December's 49.6, marking the seventh consecutive month of contraction. Any reading below 50 signals a shrinking sector.
Chinese stocks climbed after U.S. President Donald Trump suggested he would prefer not to impose further tariffs on China during a media interview, easing trade war tensions.
In the U.S., the S&P 500 closed at a record 6,118.72 points on Thursday, up 0.5%. The Dow Jones Industrial Average gained 0.9% to 44,565.26, while the NASDAQ Composite edged up 0.2%. Investors responded positively to robust corporate earnings and Trump's address at Davos, where he urged for immediate global interest rate cuts.
GE Aerospace shares soared 6.6% after posting better-than-expected Q4 sales and profits. Union Pacific Corporation saw a 5.2% jump in stock price, fueled by strong operational metrics and lower fuel costs. On the flip side, Electronic Arts Inc. tumbled 16.7% after slashing its net bookings guidance, citing weak performance in several games, particularly its soccer franchise. American Airlines Group slid 8.7% as it projected a larger-than-expected Q1 loss due to rising costs, despite exceeding Q4 earnings forecasts.
President Trump, speaking remotely at the World Economic Conference in Davos, Switzerland, addressed global economic issues including interest rates, U.S.-China trade, and energy policies. On monetary policy, he urged for immediate interest rate cuts worldwide, emphasizing their importance for economic growth.
Stocks in Spotlight:
Syngene International slumped 5.74% after the company projected single-digit revenue growth and flat PAT for the full year, with EBITDA guidance unchanged at around 30% for FY25. It earlier guided revenues in high single digits to low double digits for FY25.
The company reported 17.58% increase in consolidated net profit to Rs 131.1 crore in Q3 FY25 compared with Rs 111.5 crore in Q3 FY24. Revenue from operations jumped 10.57% YoY to Rs 943.7 core in Q3 FY25.
Dr Reddy's Laboratories declined 5.01%. The company reported 2.4% increase in consolidated net profit to Rs 1,413.70 crore in Q3 FY25 compared with Rs 1,380.90 crore in Q3 FY24. Net sales jumped 15.9% to Rs 8,358.60 crore in Q3 FY25 compared with Rs 7,214.80 crore in Q3 FY24.
The Dr Reddy's Laboratories stock dropped amid media reports highlighting concerns over the declining revenue contribution from Revlimid, which has also pressured margins. Revlimid, a blockbuster cancer drug and a significant growth driver for Dr. Reddy's in recent years, is nearing its patent expiry in January 2026, raising fears of a potential revenue decline post-expiry.
Mankind Pharma fell 5.15% after the company's consolidated net profit declined 16.2% to Rs 380.23 crore in Q3 FY25 as against Rs 453.76 crore posted in Q3 FY24. However, revenue from operations increased 23.9% year on year (YoY) to Rs 3,230 crore in the third quarter of FY25.
Granules India slipped 2.83% after its consolidated net profit fell 6.41% to Rs 117.60 crore on 1.55% decline in total revenue from operations to Rs 1,137.70 crore in Q3 FY25 over Q3 FY24.
Capri Global Capital (CGCL) soared 10.38% after the NBFC's consolidated net profit surged 88.41% to Rs 128.08 crore on 35.63% increase in total income to Rs 821.83 crore in Q3 FY25 over Q3 FY24.
KFin Technologies rallied 5.43% after the company's consolidated net profit jumped 34.9% to Rs 90.18 crore in Q3 FY25 as against Rs 66.83 crore recorded in Q3 FY24. Revenue from operations increased 32.6% year on year (YoY) to Rs 290.02 crore in the quarter ended 31 December 2024.
V2 Retail hit the upper circuit of 5% after the company's consolidated net profit surged 117.2% to Rs 51.19 crore in Q3 FY25 compared with Rs 23.57 crore in Q3 FY24. Revenue from operations jumped 58.1% to Rs 590.94 crore in Q3 FY25 compared with Rs 373.76 crore in corresponding quarter last year.
Nippon Life India Asset Management fell 5.19% after the company's net profit slipped 17.97% to Rs 295.36 crore in Q3 FY25 as against Rs 360.10 crore in Q2 FY25. Total income fell 12.83% to Rs 603.3 crore in Q3FY25 over Q2FY25.
Arvind SmartSpaces tumbled 9.29%. The company said that it has signed an agreement for a large horizontal multiuse project in Mumbai Metropolitan Region (MMR), with a total estimated area of 92 acre and a top-line potential of Rs 1,500 crore.
Indian Energy Exchange (IEX) rose 1.13% after the company's consolidated net profit jumped 16.86% to Rs 107.29 crore on 14.53% increase in revenue from operations to Rs 132.05 crore in Q3 FY25 over Q3 FY24.
United Spirits declined 1.91%. The spirits maker's standalone net profit jumped 36.31% to Rs 473 crore in Q3 FY25 as against Rs 347 crore posted in Q3 FY24. Revenue from operations (excluding excise duty) stood at Rs 3,432 crore in Q3 FY25, up 14.82% YoY.
Tejas Networks slumped 9.42% after the company's consolidated net profit fell 39.80% to Rs 165.57 crore while net sales declined 5.95% to Rs 2642.24 crore in Q3FY25 over Q2FY25. Profit before tax (PBT) slipped 48.53% to Rs 211.27 crore in Q3FY over Q2FY25. The company's order book at the end of Q3 FY25 stood at Rs 2,681 crore, well below the last five-quarter average of about Rs 7,700 crore.
Amber Enterprises India advanced 2.89% after the company reported consolidated net profit of Rs 35.87 crore in Q3 FY25, compared with net loss of Rs 0.48 crore posted in Q3 FY24. Revenue from operations jumped 64.8% year on year (YoY) to Rs 2,133.33 crore in the quarter ended 31 December 2024.
Thyrocare Technologies fell 4.13%. The healthcare service provider reported 28.56% increase in consolidated net profit to Rs 18.95 crore on 23.14% rise in revenue from operations to Rs 165.92 crore in Q3 FY25 over Q3 FY24.
Sona BLW Precision Forgings slipped 3.30%. The company has reported a 13.93% increase in consolidated net profit to Rs 151.19 crore on 11.02% rise in revenue from operations to Rs 867.91 crore in Q3 FY25 over Q3 FY24.
Vishnu Chemicals added 2.09% after the company's consolidated net profit jumped 65.73% to Rs 34.39 crore in Q3 FY25 compared with Rs 20.75 crore in Q3 FY24. Revenue from operations increased 22.28% YoY to Rs 371.22 crore in during the quarter.
EFC (I) tumbled 16.15%. The company has reported 91.7% jump in consolidated net profit to Rs 40.47 crore on a 4.5% rise in revenue to Rs 181.51 crore in Q3 FY25 as compared with Q3 FY24.
Jyoti Structures hit an upper circuit of 10% after the company received an order worth Rs 741.28 crore for a project in Khavda, Gujarat, from Power Grid Corporation of India.
IPO Update:
The initial public offer (IPO) of Denta Water and Infra Solutions received bids for 1,16,29,62,200 shares as against 52,50,000 shares on offer, according to stock exchange data at 17:00 IST on 24 January 2024. The issue was subscribed to 221.52 times.
The issue opened for bidding on 22 January 2024 and it will close on 24 January 2024. The price band of the IPO is fixed between Rs 279 and Rs 294 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.
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