Muted cues from Wall Street and Asia-Pacific markets weigh on sentiment
The Indian stock market experienced a downward trajectory on Friday, January 17, 2025, influenced by muted global cues. Major equity indices, the BSE Sensex and the NSE Nifty50, both recorded declines during the session, reflecting broader market trends and investor sentiment.
Performance of Benchmark Indices
At midday, the BSE Sensex had fallen by 546.63 points, or 0.71%, to reach 76,496.19. Similarly, the Nifty50 index dropped by 143.20 points, or 0.61%, to trade at 23,168.60. These declines came after a relatively steady opening bell, marking a reversal in momentum from the previous trading session.
Movers on BSE Sensex
On the BSE Sensex, nine stocks were trading in the green. Reliance Industries led the pack with a 2.03% gain, followed by Sun Pharma, Nestle India, Larsen & Toubro, and ITC. On the other hand, Infosys recorded the sharpest decline, falling by 4.49%. Other laggards included Axis Bank, HCLTech, TCS, and Mahindra & Mahindra, which faced selling pressure throughout the session.
Top Performers and Laggards on Nifty50
The Nifty50 reflected a broader market downturn, with 31 stocks trading lower. Infosys led the losses with a 4.50% drop, followed by Axis Bank, Mahindra & Mahindra, Trent, and Wipro. Meanwhile, gains on the index were driven by Reliance Industries, which rose by 2.68%, followed by Hindalco Industries, Tata Consumer Products, HDFC Life, and Coal India.
Sectoral Indices Performance
Most sectoral indices ended in the red, led by the Nifty IT index, which fell by 2.31%, followed by the Private Bank index, down 1.54%. Other lagging sectors included Auto, Pharma, PSU Bank, Healthcare, and Consumer Durables. However, the Energy index bucked the trend, gaining 1.28%, supported by strong performances in key energy stocks. Realty and Metal indices also posted modest gains, rising by 0.47% each.
Broader Market Trends
Broader indices reflected the cautious sentiment, with the Nifty Smallcap 100 slipping 0.20% and the Nifty Midcap 100 declining by 0.17%. This indicated a subdued performance across market capitalization categories, influenced by both domestic and global factors.
Global Market Influence
Global cues played a significant role in shaping the day’s trading. A relief rally in Wall Street on Wednesday faded by Thursday due to mixed macroeconomic data, including robust retail sales figures and stable initial jobless claims. In Asia, markets traded mostly lower as investors digested China’s GDP data for 2024, which revealed a 5% annual growth rate, slightly exceeding expectations. European markets, however, managed to climb in Thursday’s session, supported by strong corporate earnings and optimism over regional growth.
Economic Updates and Domestic Developments
The World Bank retained India’s GDP growth forecast at 6.7% for FY26, projecting it as the fastest-growing major economy for the next two years. This outlook was further supported by projections from the Federation of Indian Chambers of Commerce and Industry (FICCI), which estimated growth between 6.5% and 6.9%, driven by easing inflation, rising capital expenditure, and improving consumer spending.
The Reserve Bank of India (RBI) announced daily variable rate repo (VRR) auctions to ensure liquidity in the banking system. This led to a decline in government bond yields, with the 10-year benchmark yield dropping 6 basis points to 6.75%. These measures aimed to stabilize the financial system amidst fluctuating market conditions.
Currency and Commodities
The Indian rupee depreciated by 16 paise to close at 86.56 against the US dollar, affected by a stronger dollar overseas, elevated crude oil prices, and foreign fund outflows. In commodities, gold prices rose to $2,713.26 per ounce, reaching a one-month high due to declining US Treasury yields and renewed interest in safe-haven assets. Crude oil prices dipped slightly, with Brent settling at $81.29 per barrel.
Corporate Earnings Spotlight
Key earnings reports impacted specific stocks during the session. Reliance Industries reported a 7.4% year-on-year increase in consolidated profit to Rs 18,540 crore for Q3FY25, exceeding analyst expectations. Infosys, despite posting an 11.4% year-on-year increase in net profit, saw its stock decline following a drop in its American depositary receipts (ADRs). Axis Bank reported a subdued 4% year-on-year increase in net profit, affected by higher provisions and a muted rise in net interest income.
Primary Market Activity
In the primary markets, several IPOs were active. Capital Infra and Sat Kartar Shopping listed on the bourses, while EMA Partners’ IPO opened for subscription. Other IPOs, such as Stallion India and Landmark Immigration, entered their second subscription day, indicating continued investor interest in the initial public offering space.
The Indian stock market experienced a challenging session, influenced by muted global cues, sectoral weakness, and cautious investor sentiment. While specific sectors like Energy and Realty managed to post gains, broader indices and most sectoral indices were under pressure. The global economic environment, including macroeconomic data from the US and China, along with domestic factors like corporate earnings and policy measures, played a significant role in shaping the day’s trading. With the Union Budget 2025-26 on the horizon, market participants remain focused on fiscal policies and growth-oriented measures that could influence future trends.
