The domestic equity benchmarks witnessed a sharp decline today, pressured by a series of negative factors. Concerns surrounding weak global cues, disappointing Q3 earnings from several companies, uncertainty over U.S. trade policies, and persistent foreign institutional investor (FII) outflows weighed heavily on investor sentiment.
The benchmark Nifty 50 index closed below the 22,850 mark, led by weakness in the IT and metal sectors. The broader market suffered a severe blow, with midcap and smallcap indices plunging sharply. The India VIX, a key measure of market volatility, surged over 8%, reflecting heightened investor anxiety.
Adding to the global market turmoil, Nasdaq futures tumbled by 4.2%, as investors assessed the potential impact of Chinese startup DeepSeek's launch of a free, open-source AI model. The new AI tool is seen as a direct competitor to OpenAI's ChatGPT, raising concerns about increased competition and its implications for the tech sector.
Market participants are now closely watching two critical events'the Union Budget, set to be unveiled on February 1, and the U.S. Federal Reserve's interest rate decision on January 29'which are expected to set the tone for markets in the coming days.
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.
Infosys (down 2.83%), TCS (down 2.05%), Reliance Industries (down 1.33%) and HDFC Bank (down 1.20%) slumped.
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 slumped 3.51%.
The market breadth was weak. On the BSE, 593 shares rose and 3522 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, 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.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 1.01% to 6.788 as compared with previous close 6.720.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.3100, compared with its close of 86.2200 during the previous trading session.
MCX Gold futures for 5 February 2025 settlement added 0.04% to Rs 80,060.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 107.22.
The United States 10-year bond yield slipped 2.31% to 4.516.
In the commodities market, Brent crude for March 2025 settlement gained 31 cent or 0.39% to $78.81 a barrel.
Global Markets:
The US Dow Jones index futures were currently down by 388 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.
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. Net interest income (NII) increased by 9.06% YoY to Rs 20,371 crore in during the quarter. Net interest margin (NIM) was 4.25% in Q3 FY25 as compared to 4.43% in Q3 FY24.
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. However, total income during the quarter increased by 18.38% YoY to Rs 11,122.87 crore. The PAT was largely impacted by reduced income from slowing disbursal of micro-finance loans, increase in provisions on micro-finance and normalization of credit costs of non-microfinance business. Microfinance portfolio as per cent of overall loan book reduced to 4.8% in the December 2024 quarter from 5.6% in the September 2024 quarter.
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.
Coal India fell 2.04%. The company reported 17.04% decrease in consolidated net profit to Rs 8,505.57 crore in Q3 FY25 from Rs 10,253.48 crore in Q3 FY24. Revenue from operations fell 1.03% to Rs 35,779.78 crore in the third quarter of FY25 from Rs 36,153.97 crore recorded in the same period last year. Meanwhile, the board has declared the second interim dividend of Rs 5.60 per equity share for the financial year 2024-25 and also fixed Friday, 31 January 2025, as the record date.
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. During the Q3 FY 2024-25, approximately 92 lakh new demat accounts were opened.
DAM Capital Advisors rose 2.88% after the company's consolidated net profit surged 144.47% to Rs 51.51 crore on 131.44% increase in total income to Rs 104.01 crore in Q3 FY25 over Q3 FY24. On the segmental front, revenue from stock broking stood at Rs 20.38 crore (up 71.54% YoY) and investment banking stood at Rs 80.35 crore (up 154.43% YoY) during the period under review.
Refex Industries rallied 3.28% 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.
DLF climbed 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. In Q3 FY25, new sales bookings was at Rs 12,093 crore, up 33.67% from Rs 9,047 crore posted in same quarter last year. The company generated operating cash surplus at Rs 1,850 crore in the December 2024 quarter, consequently the net cash position stood at Rs 4,534 crore at the end of the period.
Interglobe Aviation (Indigo) rose 0.3%. 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.
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.
LT Foods declined 4.60% 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.
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.
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