The domestic equity indices staged a rebound on Tuesday, ending a four-day losing streak. The Nifty 50 ended above the 23,170 mark, led by gains in PSU banks and metal stocks. However, IT and FMCG sectors witnessed some correction.
Investors appeared to view the recent market correction as overdone, leading to buying interest in oversold sectors. Easing Wholesale Price Index (WPI) inflation provided some relief, while stabilizing crude oil prices also supported market sentiment.
Further buoying investor confidence were gains in key Asian markets, including mainland China, Taiwan, and Hong Kong. Reports suggested that the Trump administration might implement tariff hikes gradually, rather than a large increase at once, potentially mitigating inflationary risks.
The S&P BSE Sensex rose 169.62 points or 0.22% to 76,499.63. The Nifty 50 index rose 90.10 points or 0.39% to 23,176.05. In four consecutive trading sessions, the Sensex and Nifty dropped by 2.39% and 2.62%, respectively.
Adani Enterprises (up 7.12%), Adani Ports & SEZ (up 4.77%) and Bajaj Finance (up 2.62%) boosted the indices.
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The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rallied 2.13% and the S&P BSE Small-Cap index gained 1.69%.
The market breadth was strong. On the BSE, 2,867 shares rose and 1,096 shares fell. A total of 110 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.29% to 15.47.
Indian Rupee hit a fresh record low against the US dollar on Tuesday. The currency opened at 86.5700 and touched a fresh all-time low of 86.7000 and is currently trading at 86.58.
Economy:
India's wholesale price inflation rose to 2.37% in December 2024, led by spike in manufactured products even though prices of food items eased, government data released on Tuesday (January 14, 2025) showed. The Wholesale Price Index (WPI) based inflation was 1.89% in November 2024. It was 0.86% in December 2023.
Numbers to Track:
The yield on India's 10-year benchmark federal paper grew 1.70% to 6.959 as compared with the previous close of 6.956.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.5800 compared with its close of 86.7025 during the previous trading session.
MCX Gold futures for the 5 February 2024 settlement shed 0.02% to Rs 78,150.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 109.61.
The United States 10-year bond yield shed 0.52% to 4.780.
In the commodities market, Brent crude for March 2025 settlement declined 0.49 cents or 0.60% to $80.52 a barrel.
Global Markets:
U.S. stock futures signal a positive open on Tuesday, with Dow Jones Industrial Average futures trading 152 points higher.
Shares in Europe and Asia advanced on Tuesday as concerns over the potential impact of disruptive trade tariffs under the incoming Trump administration have eased slightly, following reports that his team is considering a gradual increase in import duties.
U.S. indices partially recovered from their initial losses on Monday, resulting in a mixed close. The S&P 500 saw a modest 0.16% gain, while the Dow Jones Industrial Average rebounded from a two-month low with a robust 0.86% increase. The NASDAQ Composite lagged behind, experiencing a 0.38% decline.
This week, investor attention will be firmly focused on the release of December's Consumer Price Index (CPI) inflation data on Wednesday. Additionally, the earnings season is set to commence in earnest on Wednesday, with several major Wall Street banks scheduled to report their financial results.
New Listing:
Shares of Quadrant Future Tek settled at Rs 448.75 on the BSE, a premium of 54.74% as compared with the issue price of Rs 290.
The scrip was listed at Rs 374, a premium of 28.97% to the issue price. The stock has hit a high of 448.75 and a low of 367. On the BSE, over 15.38 lakh shares of the company were traded in the counter.
Buzzing Index:
The Nifty PSU Bank index added 4.20% after it was reported that the government has approved a Rs 10,000 crore QIP (qualified institutional placement) plan for five state-owned lenders. Punjab and Sind Bank, Indian Overseas Bank, UCO Bank, Central Bank and Bank of Maharashtra have got the nod to raise funds to the tune of Rs 2,000 crore each.
The index slipped 4.57% in past four consecutive trading sessions. Bank of Maharashtra (up 13.29%), Central Bank of India (up 9.37%), Indian Overseas Bank (up 8.89%), UCO Bank (up 6.94%) and Punjab Sind Bank (up 6.18%) were top gainers.
Stocks in Spotlight:
HCL Technologies tanked 8.63%. The companys consolidated net profit jumped 8.41% to Rs 4,591 crore on 3.56% increase in net sales to Rs 29,890 crore in Q3 FY25 over Q2 FY25.
Meanwhile, the board has declared an interim dividend of Rs 18 per equity share for FY25. This includes a special dividend of Rs 6 per share. The record date for the payment of the aforesaid interim dividend shall be January 17, 2025.
Total contract value (TCV) of new deal wins was $2095 million at the end of December 2025 quarter. While HCLTech reported strong deal bookings, muted growth guidance dampened investor sentiment. In FY25 guidance, the companys CC revenue growth expected to be between 4.5%- 5.0% YoY. The services CC revenue growth expected to be 4.5-5.0% YoY. Additionally, EBIT margin expected to be between 18.0% -19.0% YoY.
Angel One fell 2.97%. The company reported 8.1% increase in consolidated net profit to Rs 281.47 crore on 19.1% jump in total income to Rs 1,263.80 crore in Q3 FY25 over Q3 FY24.
Meanwhile, the companys board declared first interim dividend for FY25 of Rs 11 per share and the record date is fixed as Tuesday, 21 January 2025. The dividend will be paid on or before 12 February 2025. Further, the companys board has appointed Ambarish Kenghe as the group chief executive officer and key managerial personnel, effective on or before 6 March 2025.
Lotus Chocolate Company hit a lower circuit of 5% after the companys standalone net profit dropped 29% to Rs 3.72 crore in Q3 FY25 as against Rs 5.24 crore posted in Q2 FY25. However, revenue from operations rose 14.34% quarter on quarter (QoQ) to Rs 146.69 crore in the quarter ended 31 December 2024.
HDFC Asset Management Company added 0.72% after the companys standalone net profit increased 30.99% to Rs 641.46 crore on 26.22% rise in total income to Rs 1,027.10 crore in Q3 FY25 over Q3 FY24.
Indobell Insulations hit an upper circuit of 5% after the company has secured an order for supply and application of hot lagging worth Rs 11.01 crore from Cochin Shipyard.
JSW Energy jumped 5.87% after the company said it has received letter of intent (LoI) for its resolution plan for KSK Mahanadi Power Company (KMPCL) under the Insolvency and Bankruptcy Code, 2016.
Bajel Projects rallied 4.92% after the company announced that it has received an EPC contract from Adani Energy Solutions (AESL) for constructing transmission line in Tiroda, Maharashtra.
Vijaya Diagnostic Centre slipped 3.66% after the company informed that Narasimha Raju KA, chief financial officer (CFO) of the company has resigned from his services effective on or before 31 March 2025.
IPO Update:
The initial public offer of Laxmi Dental received bids for 14,36,67,282 shares as against 89,70,371 shares on offer, according to stock exchange data at 17:00 IST on 14 January 2025. The issue was subscribed 16.02 times.
The issue opened for bidding on 13 January 2025, and it will close on 15 January 2025. The price band of the IPO is fixed between Rs 407 and Rs 428 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.
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