Pharma Index Drags 1.22% While Sensex and Nifty Close in the Green
The Indian stock market witnessed a positive trading session on Wednesday, January 15, 2025, as both benchmark indices, BSE Sensex and Nifty50, traded higher despite muted global cues. Domestic investor confidence and optimism surrounding corporate earnings contributed to this upward momentum. At 11 AM, the Sensex climbed by 435.46 points, or 0.57 percent, to reach 76,935.09, while the Nifty50 advanced by 109.05 points, or 0.47 percent, to settle at 23,285.10.
Key Gainers and Losers
Market gains were primarily driven by stocks such as Power Grid Corporation, NTPC, and Maruti Suzuki. Power Grid Corporation emerged as the top gainer on both indices, rising by 3.72 percent on the Sensex and 3.88 percent on the Nifty50. NTPC and Maruti Suzuki followed closely, supported by strong sectoral trends and positive earnings outlooks.
Conversely, financial stocks like Bajaj Finserv and Bajaj Finance capped gains for the indices. Bajaj Finserv registered a decline of 3.89 percent on the Sensex and 3.48 percent on the Nifty50. Other laggards included Axis Bank, Nestle India, and Mahindra & Mahindra, reflecting subdued performance in financial and consumer-focused sectors.
Sectoral Indices Performance
Sectoral indices on the NSE and BSE showcased mixed performance. The Realty index led gains, climbing 1.04 percent, driven by positive investor sentiment and optimism in the real estate sector. Energy stocks followed closely, with the Energy index rising by 0.80 percent. Other sectors such as Metals, PSU Banks, IT, and Private Banks also recorded moderate gains.
On the flip side, Pharma and Healthcare indices underperformed, declining by 1.22 percent and 1.14 percent, respectively. The Consumer Durables and FMCG indices also experienced minor declines, reflecting cautious sentiment in these segments. The Financial Services index lagged amid mixed earnings results and profit-booking by foreign investors.
Broader Markets and Institutional Activity
The broader markets mirrored the positive sentiment seen in the benchmark indices. The Nifty Midcap 100 advanced by 0.42 percent, while the Nifty Smallcap 100 gained 0.24 percent. This suggests steady buying interest in midcap and small-cap stocks, albeit at a slower pace compared to large-cap counters.
Foreign institutional investors (FIIs) remained net sellers, offloading Indian equities worth ₹8,132.26 crore on Tuesday. Meanwhile, domestic institutional investors (DIIs) stepped in with net purchases of ₹7,901.06 crore, highlighting continued support from local players.
Global Cues and Economic Developments
Global markets presented a mixed picture. In the US, indices closed with minimal changes as investors awaited retail inflation data. The Dow Jones rose by 0.52 percent, while the Nasdaq fell by 0.23 percent. The S&P 500 ended the session marginally higher, reflecting cautious optimism ahead of corporate earnings releases and inflation figures.
In Asia, markets exhibited moderate gains. Japan’s Nikkei 225 rose by 0.38 percent, supported by positive earnings expectations. South Korea’s Kospi gained 0.13 percent, while Australia’s ASX 200 added 0.11 percent. However, China’s CSI300 index declined by 0.57 percent, weighed down by regulatory concerns and profit-booking.
Currency and Commodity Markets
In currency markets, the Indian rupee hit an intraday low of 86.69 per dollar on Tuesday but recovered slightly to close at 86.64 per dollar. Persistent demand for dollars by oil importers and foreign investors has exerted pressure on the rupee, reflecting concerns over capital outflows.
Oil prices declined during the previous session. Brent crude settled at $79.92 per barrel, while US crude ended at $77.50 per barrel. The decline was attributed to forecasts of steady US oil demand in 2025 and higher supply estimates, dampening investor sentiment.
Domestic Factors Supporting Sentiment
India’s equity markets found support from domestic factors despite cautious global trends. Corporate earnings for the third quarter have begun to trickle in, providing early indicators of economic recovery and sectoral growth. Investors are closely monitoring earnings reports to gauge the impact of inflationary pressures and interest rate hikes on corporate profitability.
Expectations surrounding the upcoming Union Budget 2025 and the Reserve Bank of India’s monetary policy meeting are also contributing to market optimism. Analysts believe that favorable announcements on fiscal spending and policy measures could provide further impetus to the markets.
Adani Group Stocks and Primary Market Action
Adani Group stocks were in focus during the previous session, with several entities witnessing gains of up to 20 percent. Adani Power, Adani Green Energy, Adani Energy Solutions, and Adani Ports were among the top performers, driven by positive sentiment and speculative activity.
In the primary markets, multiple IPOs gained attention. Laxmi Dental Limited’s IPO in the mainline section and Barflex Polyfilms Limited’s IPO in the SME segment closed for subscriptions today. The basis of allotment for Sat Kartar Shopping Limited’s IPO is also expected to be finalized, adding to the excitement in the IPO market.
The Indian stock market demonstrated resilience on January 15, 2025, as benchmark indices traded higher, led by gains in key sectors and supported by domestic investor activity. Despite cautious global cues and persistent FII outflows, the markets have managed to find support, driven by corporate earnings and expectations surrounding the Union Budget. Sectoral indices exhibited mixed performance, with realty and energy leading gains while pharma and consumer durables lagged.
Investors will continue to keep a close eye on global economic developments, domestic earnings reports, and policy announcements for cues on the market’s future trajectory. With strong support from domestic institutional investors, the Indian markets remain well-positioned to navigate near-term challenges and capitalize on growth opportunities.
