The key equity benchmarks traded with substantial losses in the mid-morning trade as foreign outflows and mixed earnings dampened sentiment. Concerns over the Union Budget 2025 and Trump's 25% tariff on Colombian goods added to market jitters. The Nifty traded below the 22,900 level.
IT shares witnessed profit booking after advancing in the past three consecutive trading sessions.
At 11:30 IST, the barometer index, the S&P BSE Sensex, declined 639.26 points or 0.84% to 75,551.20. The Nifty 50 index fell 200.95 points or 0.87% to 22,891.25.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.46% and the S&P BSE Small-Cap index slipped 3.56%.
The market breadth was weak. On the BSE, 492 shares rose and 3,418 shares fell. A total of 148 shares were unchanged.
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.
Buzzing Index:
The Nifty IT index declined 2.13% to 42,596.55. The index rallied 2.16% in past three consecutive trading sessions.
Persistent Systems (down 3.63%), LTIMindtree (down 3.35%), L&T Technology Services (down 2.83%), Wipro (down 2.78%), HCL Technologies (down 2.72%), Coforge (down 2.71%), Tech Mahindra (down 2.65%), Tata Consultancy Services (down 2.19%), Infosys (down 1.82%) and Mphasis (down 1.58%).
Stocks in Spotlight:
DCB Bank rallied 4.23% after the bank's standalone net profit jumped 19.64% to Rs 151.44 crore in Q3 FY25 compared with Rs 126.58 crore posted in Q3 FY24.Total income increased 23.85% YoY to Rs 1,855.10 crore during the quarter.
Bank of India added 4.48% after the bank's standalone net jumped 34.62% to Rs 2,516.69 crore in Q3 FY25 compared with Rs 1,869.51 crore in Q3 FY24. Total income jumped 21.61% YoY to Rs 19,956.90 crore during the quarter.
JSW Steel dropped 2.20% 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.
Global Markets:
The US Dow Jones index futures were currently down by 57 points, signaling a weak opening for US stocks today.
Most Asian stocks advanced on Monday following an 11% year-on-year increase in China's industrial profits for December. However, investors also focused on the unexpected contraction in China's factory activity growth, with the official purchasing managers' index for January coming in at 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.
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