Following a sudden rise, benchmark indices Nifty and Sensex erased all gains to trade largely flat on the bourses on January 21 following a sharp downturn in pharma stocks. On the other hand, FMCG and energy indices opened in the green. With today's start, the frontline indices have now snapped its two-day gaining streak.
The fall comes after the Bank of Japan hiked rates by 25 basis points Friday to 0.5 percent, bringing its policy rate to its highest level since 2008, as it seeks to normalize its monetary policy. On the other hand, US markets performed well. The benchmark S&P 500 rose to a record closing high, while the other two gained for a fourth day in a row after U.S. President Donald Trump called for lower interest rates and cheaper oil prices.
At 10 am, the Sensex was down 142.97 points or 0.19 percent at 76,377.41, and the Nifty was down 44.95 points or 0.19 percent at 23,160.40. About 1,125 shares advanced, 1,851 shares declined, and 137 shares unchanged.
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"The recovery in IT majors has been the primary driver of the index's rebound in the last couple of days, with other sectors providing rotational support. However, we recommend not reading too much into this bounce and sticking with a "sell on the rise" strategy for the Nifty index," Ajit Mishra, Senior Vice President at Religare Broking said. "At the same time, stock-specific opportunities remain plentiful across sectors, so participants should focus on maintaining balanced positions on both sides," he added.
However, relentless selling by the FPI, the slowdown in the economy and a miss in corporate earnings are the key points concerns clouding Indian investors. To be sure, FPI sold over Rs 5,000 crore in cash markets yesterday, taking the total tally for the month to Rs 66,321.65 crore, Moneycontrol data showed.
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Among sectoral indices, Nifty Energy and Oil and Gas and FMCG index rose the most with gains of up to 1 percent. Hindustan Unilever, Britannia Industries, and ITC lifted the index higher. Nifty Pharma tanked nearly 2 percent led by a sharp fall in Dr Reddy's following its Q3 earnings. Nifty Auto and PSU Banks tanked 1 percent each. M&M, Maruti Suzuki and Tata Motors dragged the index. Bajaj Auto officially kicks off Q3 for the auto sector on January 28.
The broader market, represented by mid- and small-cap stocks was back in the red following a massive rise in the previous session. The mid-small cap indices slipped 0.8 and 1.5 percent, each. On January 22, the mid-small cap indices crashed a massive 2 percent. Despite the rise, the broader market will likely see sustained pressure amid the given uncertainty and volatility.
Adani Green Energy shares slipped lower despite reporting solid third quarters. Its consolidated net profit surged by more than 85 percent to Rs 474 crore compared to Rs 256 crore in the same period last year. The pure-play renewable firm from billionaire Gautam Adani-led Adani Group's revenue from operations also saw an increase of 2.3 percent to Rs 2,365 crore compared to Rs 2,311 crore in the year-ago period.
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Dr Reddy's shares plunged over 6 percent following its Q3 show. The quarter highlighted declining revenue contribution from Revlimid, which also weighed on margins. With Revlimid, the blockbuster cancer drug and a key growth driver for Dr Reddy's in recent years, approaching its patent expiry in January 2026, concerns about potential revenue loss are mounting.
Given the negative mood, UltraTech Cement shares slipped despite its stellar Q3 prompted bullish calls. India's largest cement player reported a 17 percent decline in its consolidated net profit for the October-December quarter to Rs 1,470 crore. Consolidated revenue from operations rose nearly 3 percent YoY to Rs 17,193 crore, but recovering demand from the infrastructure segment as well as from the rural markets ensured that it beat market expectations.
"For bulls, a breakout above 23,400, which aligns with the 20 DEMA, is critical to triggering momentum. A decisive move beyond this level could lead to a range breakout, paving the way for further upside toward the 23,800–24,000 zone, marked by significant moving averages and the upper end of the falling wedge pattern," Sameet Chavan, Head of Technical and Derivative Research at Angel One said. "On the downside, strong support exists at the recent lower range of 23,000, with an additional cushion at 22,900, which aligns with the lower boundary of the falling wedge pattern and is reinforced by the positive development of RSI smoothened oscillators," he added.
BPCL, Power Grid, BEL, Bajaj Auto and JSW Steel were the major gainers on the Nifty. Laggards included Dr Reddy's, Apollo Hospitals, Tata Motors, SBI Life Insurance and Trent were
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