Market Commentary - Mid-Session
Sensex Nifty under pressure; European mrkt decline As on : 21-Jan-25  13:41

The key domestic indices traded with significant losses in afternoon trade as investors considered the likely consequences of Donald Trump's second term, focusing on US-China trade tensions, US Fed rate cuts, and global economic growth. The Nifty traded below the 23,200 level after hitting the day's high of 23,426.30 in early trade. Trading was volatile due to the weekly F&O series expiry of the Sensex today.

Barring FMCG all the other sectroal indices on the NSE were traded in red with consumer durables and Realty shares witnessing steepest decline.

At 13:25 IST, the barometer index, the S&P BSE Sensex, dropped 591.24 points or 0.77% to 76,489.11. The Nifty 50 index lost 146.20 points or 0.63% to 23,198.55.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.53% and the S&P BSE Small-Cap index declined 1.57%.

The market breadth was weak. On the BSE, 1,280 shares rose and 2,568 shares fell. A total of 150 shares were unchanged.

Gainers & Losers:

Apollo Hospital Enterprise (up 3.05%), Ultratech Cement (up 2.02%), Bharat Petroleum Corporation (BPCL) (up 1.57%), Tata Consumer Products (up 1.56%) and HCL Technologies (up 1.04%) were the major Nifty gainers.

Trent (down 4.71%), Adani Ports & Special Economic Zone (APSEZ) (down 2.52%), ICICI Bank (down 2.25%), NTPC (down 2.02%) and Adani Enterprises (down 1.69%) were the major Nifty losers.

Stocks in Spotlight:

Dixon Technologies (India) tumbled 13.08% after the company's consolidated net profit declined 47.48% to Rs 216.23 crore on 9.37% fall in revenue from operations to Rs 10,453.68 crore in Q3 FY25 over Q2 FY25.

Sunteck Realty advanced 1.62% after the company reported consolidated net profit of Rs 42.52 crore in Q3 FY25 as against net loss of Rs 9.73 crore in Q3 FY24. Revenue from operations stood at Rs 161.76 crore in the December 2024 quarter, registering a growth of 281.06% YoY.

Jammu & Kashmir Bank declined 2.50%. The bank reported 26.23% jump in net profit to Rs 531.51 crore on 12.57% increase in total income to Rs 3,448.40 crore in Q3 FY25 over Q3 FY24.

International Travel House (ITHL) tanked 8.08% after the company's standalone net profit tumbled 27.49% to Rs 5.38 crore in Q3 FY25 as against Rs 7.42 crore posted in Q3 FY24. Revenue from operations slipped 4.36% year on year (YoY) to Rs 58.27 crore in the quarter ended 31 December 2024.

DEE Development Engineers rallied 5.03% after the firm commissioned 2nd phase of its manufacturing plant in Anjar, Gujarat, enhancing the capacity by 9,000 MT per annum.

Venues remedies jumped 4.86% after the company successfully renewed its European good manufacturing practices (GMP) certification by infarmed, the national health authority of Medicines and Health products in Portugal.

Glenmark Pharmaceuticals added 0.04% after the company's US-based division Glenmark Pharmaceuticals Inc. announced the launch Phytonadione Injectable Emulsion.

Global Markets:

The US Dow Jones index futures were currently up by 113 points, signalling a positive opening for US stocks today.

Most of the European market declined as trader digested the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday. Further, investors will be keeping eye on the World Economic Forum this week.

Most Asian shares traded mixed as market attention turned to upcoming central bank meetings in Asia later this week. Malaysia's central bank is expected to maintain its policy rate at 3% on Wednesday, while the Bank of Japan will hold its next policy meeting from January 23 to 24, with Governor Kazuo Ueda signaling potential interest rate hikes.

President Donald Trump held off on imposing sweeping trade tariffs on his first day in office. Trump resumed his duties in the White House on Monday, a day after his inauguration and during the Martin Luther King, Jr. Day holiday, when U.S. stock market was closed.

Sworn in as the 45th President of the United States on January 20, Trump emphasized his vision of America First in his inaugural address, focusing on economic revitalization, national security, and prioritizing domestic interests over globalization.

Trump began his term with a series of executive orders aimed at fulfilling his campaign promises. These included measures to tighten immigration controls, lay the groundwork for a U.S.-Mexico border wall, boost fossil fuel production, and scale back environmental regulations.

While he declared plans to address global trade practices, Trump opted not to impose new tariffs on the U.S.'s largest trading partners, signaling a more deliberate approach to trade relations. Instead, he directed his administration to combat unfair trade globally.

Investors closely monitored these early actions, given Trump's promises to rapidly implement his agenda.

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