Benchmark indices Nifty and Sensex started the week on a subdued note, dragged down by significant losses in PSU bank and realty stocks. The gap-down opening saw all sectors trading in the red, as a combination of domestic and global factors continued to weigh on investor sentiment.
Global cues further dampened the mood, with Asia-Pacific markets opening lower after Friday's US jobs report dashed hopes for early Federal Reserve rate cuts. Wall Street’s main indexes also posted back-to-back weekly losses, adding to the pressure. Meanwhile, the soaring dollar index, now at its highest since 2022, has intensified stress on the Indian rupee, which opened at a record low of Rs 86.18 against the dollar.
At about 9:20 am, Sensex was down 798.34 points or 1.03 percent at 76,580.57, and the Nifty was down 246.35 points or 1.05 percent at 23,185.15. About 737 shares advanced, 1,941 shares declined, and 172 shares unchanged.
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"The market remains under strain, with even minor pullbacks attracting selling pressure. As the earnings season kicks off, erratic market swings are likely to intensify," Ajit Mishra, Senior Vice President at Religare Broking said. "In the absence of any clear signs of a trend reversal, particularly in the banking index, traders are advised to use rebounds as shorting opportunities. Caution should remain a priority, with a focus on robust risk management," he added.
He added that earnings announcements could present stock-specific opportunities. IT, FMCG, and select pharma sectors appear relatively resilient, while broader markets and other sectors are likely to remain under pressure.
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In the broader market, mid- and small-cap indices followed the weak trend, starting the session with losses of 1 and 0.8 percent, respectively. Market participants are now closely eyeing the earnings season in this segment, as experts highlight a mixed bag of valuations—some offering attractive opportunities, while others appear stretched. Notably, mid- and small-cap stocks were the stars of 2024, with the Nifty Midcap and Smallcap indices surging over 20 percent each, significantly outperforming Nifty’s 9 percent rise during the same period.
All sectoral indices ended in the red, with most logging losses of nearly 1 percent. Nifty Realty bore the brunt, tumbling over 2 percent, while the Nifty PSU Bank index dropped 1.5 percent, marking its fourth consecutive day of losses as weak Q3 business updates from select banks weighed on sentiment. Metal stocks also faced selling pressure, led by declines in Tata Steel, JSW Steel, and Vedanta. Meanwhile, Nifty Auto, FMCG, and Bank indices slipped between 0.7 and 1 percent, while Nifty IT fared slightly better, edging lower by 0.4 percent.
Read more: Private life insurers outperform, LIC sees sharp decline in new premiums for December
DMart shares were buzzing in trade in the morning, falling over 2 percent after brokerages downgraded their ratings and slashed their target prices on the company after a weak earnings report for the quarter that ended in December. Avenue Supermarts reported a 4.9 percent increase in consolidated net profit at Rs 723.54 crore for the December 2024 quarter. It reported a net profit of Rs 690 crore in the corresponding quarter.
Shares of Biocon traded over 3 percent higher on January 13 after the US Food and Drug Administration cleared the arm of Biocon Biologics' insulin facility in Malaysia, putting an end to a major bottleneck for the company. The US drug regulator classified the Malaysian unit as a "Voluntary Action Indicated" (VAI), opening the doors for the company to go ahead and file products from that facility.
Waaree Energies shares gained 2 percent after entering into a Share Purchase Agreement with Enel Green Power Development S.r.l for the acquisition of a 100 percent stake in Enel Green Power India for Rs 792 crore. Enel Green Power Development is one of Europe’s largest renewable energy companies, and Enel Green Power India is its Indian business.
"After a negative opening, Nifty can find support at 23,200 followed by 23,000 and 22,800. On the higher side, 23,500 can be immediate resistance, followed by 23,600 and 23,800," Hardik Matali, Derivative Analyst at Choice Broking said. "The charts of Bank Nifty indicate that it may get support at 48,400 followed by 47,900 and 47,500. If the index advances further, 48,800 would be the initial key resistance, followed by 49,400 and 50,000," he added.
IndusInd Bank, Shriram Finance, HCL Tech, Maruti Suzuki, and Britannia Industries were the top gainers on the Nifty. BPCL, Apollo Hospital, M&M, SBI Life Insurance, and Bharat Electronics were the major laggards.
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