The key equity benchmarks continued to trade with major gains in the afternoon trade, following the Reserve Bank of India's announcement of several measures to boost liquidity in the banking system. The Nifty hovered above the 23,000 level. Realty, PSU bank and financial services shares advanced while pharma, healthcare and media stocks corrected.
At 13:29 IST, the barometer index, the S&P BSE Sensex, surged 832.74 points or 1.10% to 76,198.91. The Nifty 50 index advanced 201.95 points or 0.88% to 23,031.10.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.17% and the S&P BSE Small-Cap index slipped 1.47%.
The market breadth was weak. On the BSE, 1,367 shares rose and 2,517 shares fell. A total of 124 shares were unchanged.
Economy:
The Reserve Bank of India on Monday said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system. As part of measures to manage liquidity conditions, the central bank also announced a USD/INR buy/sell swap auction of USD 5 billion for a period of six months to be held on January 31, 2025. To inject liquidity, RBI said open market operations (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 60,000 crore in three tranches of Rs 20,000 crore each will be held on January 30, February 13, and February 20.
Gainers & Losers:
Shriram Finance (up 5.19%), Axis Bank (up 4.42%), Bajaj Finance (up 3.89%), Tata Motors (up 3.46%) and HDFC Bank (up 3.02%) were the major Nifty gainers.
Sun Pharmaceutical Industries (down 4.52%), Britannia Industries (down 2.75%), Bharat Electronics (BEL) (down 1.64%), Dr. Reddy's Laboratories (down 1.37%) and NTPC (down 1.29%) were the major Nifty losers.
Stocks in Spotlight:
Union Bank of India rallied 5.82% after the company's standalone net profit jumped 28.24% to Rs 4,603.63 crore in Q3 FY24 as compared with Rs 3589.91 crore posted in corresponding quarter last year. Total income increased 7.68% YoY to Rs 31,374.50 crore in Q3 FY25.
Coal India declined 0.65%. The company reported a 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.
Tata Steel rose 2.65%. The company's consolidated net profit declined 43.4% to Rs 295 crore in Q3 FY25 as compared with Rs 522 crore in Q3 FY24. Revenue from operations fell 5% YoY to Rs 32,760.45 crore
Bajaj Housing Finance advanced 5.53% 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.
Azad Engineering declined 6.24%. 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 99 points, signaling a negative opening for US stocks today.
European and Asian stocks traded 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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