The domestic equity market closed with modest losses on Friday, weighed down by persistent FII selling and a weakening rupee. Concerns over subdued economic growth and expectations of a slowdown in quarterly earnings further dampened investor sentiment.
Despite a positive opening, the benchmark indices quickly erased gains and traded volatile throughout the day, ultimately closing in the red. The Nifty settled below the 23,450 mark, having reached a high of 23,596.60 earlier in the session. While the IT sector rallied after strong TCS results, all other sectoral indices on the NSE declined.
The S&P BSE Sensex declined 241.30 points or 0.31% to 77,378.91. The Nifty 50 index fell 95 points or 0.40% to 23,431.50.
Adani Enterprises (down 3.95%), ICICI Bank (down 1.10%) and Reliance Industries (down 1.01%) were major drags.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index tumbled 2.13% and the S&P BSE Small-Cap index slumped 2.40%.
The market breadth was weak. On the BSE, 827 shares rose and 3167 shares fell. A total of 84 shares were unchanged.
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The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.75% to 14.92.
The Indian rupee hit a fresh record low against the US dollar on Monday. The currency opened at 85.88, traded near its fresh all-time low of 86.04.
Economy:
India's industrial output, measured by the Index of Industrial Production (IIP) rose to a six-month high of 5.2% in November 2024, up from 3.5% in October, data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday showed.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.06% to 6.879 as compared with the previous close of 6.875.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.0000, compared with its close of 85.8600 during the previous trading session.
MCX Gold futures for the 5 February 2025 settlement added 0.48% to Rs 78,476.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 109.15.
The United States 10-year bond yield gained 0.19% to 4.690.
In the commodities market, Brent crude for the March 2025 settlement gained $1.85 or 2.41% to $78.70 a barrel.
Global Markets:
U.S. stock futures point to a weak open Friday, with the Dow Jones Industrial Average futures down 24 points. This follows persistent concerns over a slower pace of interest rate cuts in 2025, exacerbated by upcoming nonfarm payroll data that could provide further insights into the economy. The upcoming earnings season, kicking off next week with major bank reports, adds another layer of uncertainty.
Most European shares advanced on Friday as investors monitor economic data and ongoing turbulence in the U.K.s debt markets.
Asian shares declined, concluding a volatile first full trading week of 2025. Investor sentiment remains fragile amid concerns over slower U.S. rate cuts and the possibility of a rate hike by the Bank of Japan.
Japanese stocks extended their losing streak to three days as stronger-than-expected wages and private spending data increased expectations of a potential BOJ rate hike in January.
Weak inflation data from China, released earlier this week, further dampened sentiment, compounded by speculation regarding potential trade tariffs against the country.
Regional markets mirrored losses in global markets, as hawkish signals from the Federal Reserve this week reinforced expectations of slower monetary easing in 2025.
The U.S. market was closed Thursday to honor the passing of former President Jimmy Carter.
Stocks in Spotlight:
IT shares rallied following impressive results from industry bellwether Tata Consultancy Services (TCS).
The Nifty IT index rose 3.44% to 44,609.50. TCS (up 5.6%), LTIMindtree (up 4.59%), Tech Mahindra (up 3.59%), HCL Technologies (up 3.22%), Infosys (up 2.53%), Wipro (up 2.51%) rallied.
TCS reported 3.95% increase in consolidated net profit to Rs 12,380 crore in Q3 FY25 compared with Rs 11,909 crore in Q2 FY25. Revenue from operations fell 0.45% QoQ to Rs 63,973 crore during the quarter. TCS' order book stood at $10.2 billion in the December quarter, compared to $8.6 billion in the preceding quarter.
Tata Elxsi tumbled 6.84% after the design-led technology service provider reported a 3.59% decline in net profit to Rs 199 crore on 2.72% increase in revenue from operations to Rs 939.17 crore in Q3 FY25 over Q3 FY24.
GTPL Hathway tumbled 11.99% after the companys consolidated net profit slipped 57.03% to Rs 10.17 crore in Q3 FY25 compared with Rs 23.67 crore in Q3 FY24. Revenue from operations increased 4.27% to Rs 887.27 crore in Q3 FY25 as compared with Rs 850.87 crore posted in the corresponding quarter last year.
Adani Wilmar slumped 9.99% after the companys promoter, Adani Commodities, proposed to sell a 20% stake at a floor price of Rs 275 per share through an offer for sale (OFS).
GNA Axles shed 0.52%. The companys consolidated net profit climbed 12.91% to Rs 25.36 crore in Q3 FY25 as compared with Rs 22.46 crore in Q3 FY24.
Indian Renewable Energy Development Agency (IREDA) dropped 6.81%. The companys standalone net profit jumped 27% to Rs 425 crore on a 36% increase in revenue from operations to Rs 1,698 crore in Q3 FY25 over Q3 FY24.
IRB Infrastructure Developers declined 4.70%. The companys toll collection jumped 19% to Rs 580 crore in December 2024 as against Rs 488 crore posted in December 2023.
Senco Gold fell 4.62%. The company announced that its revenue grew 22% year on year (YoY) and retail growth was steady at 19% YoY in the quarter ended 31 December 2024.
Indegene declined 2.10%. The company announced a strategic partnership with CliniOps, a leading provider of advanced digital clinical trial solutions, to drive innovative digital transformation in clinical trial processes and achieve better patient outcomes.
Aditya Birla Fashion and Retail (ABFRL) shed 0.9%. The company informed that its board will meet on 15 January 2025 to consider the proposal for raising funds, subject to required approvals.
The Phoenix Mills rose 1%. The company said that its total consumption stood at approximately Rs 3,998 crore in Q3 FY25, registering a growth of 21% year on year (YoY).
JSW Steel advanced 0.95%. The company announced its highest ever consolidated crude steel production for the Q3 FY25 was at 7.03 million tonnes, which is higher by 2% as compared with 6.87 million tonnes reported in Q3 FY24.
CESC tumbled 4.44% after the companys consolidated net profit declined 5.69% to Rs 265 crore in Q2 FY25 as against Rs 281 crore posted in same quarter a year ago. Revenue from operations rose 9.77% year on year (YoY) to Rs 3,561 crore in the quarter ended 31 December 2024.
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