Closing Bell: New Year party over; Sensex falls 721 points, Nifty at 24,000; IT, pharma, banks a drag

Indian benchmark indices broke two day winning run and ended lower on January 3 with Nifty at 24,000. At close, the Sensex was down 720.60 points or 0.90 percent at 79,223.11, and the Nifty was down 183.90 points or 0.76 percent at 24,004.75.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

#1 Market rises for 2nd straight session, Sensex & Nifty up 0.5% each

#2 Midcap index outperforms & gains nearly 2% while Nifty Bank ends in the red

#3 Auto continues to see buying, gains 4%, Realty falls the most, down 2

The markets took a pause after a three-day rally, shedding over half a percent. Following a flat opening, the Nifty traded within a narrow range throughout the session, eventually closing near the day’s low at the 24,005 level. Sectoral trends were mixed, with energy and FMCG sectors ending in the green, while IT and pharma closed in the red. The broader indices mirrored the benchmark’s movement, finishing with a decline of nearly half a percent each.

This pullback appears to be a normal pause following the recent recovery and could persist until the Nifty decisively crosses the next resistance at 24,250. We continue to recommend focusing on stock-specific opportunities in line with sectoral trends. In the near term, sectors like FMCG, auto, and energy are expected to outperform, so positions should be aligned accordingly.

Despite the short recovery in the past two sessions, markets lost the momentum as there is still a lot of pessimism due to slowing growth, higher domestic valuations, foreign fund outflows and uncertainty over US trade policies post Trump's resumption as the country's president. Hence, markets may see bouts of correction and investors will continue to maintain caution while keeping an eye on global developments.

Indian rupee ended marginally lower at 85.78 per dollar on Friday versus previous close of 85.75.

Indian benchmark indices broke two day winning run and ended lower on January 3 with Nifty at 24,000.

At close, the Sensex was down 720.60 points or 0.90 percent at 79,223.11, and the Nifty was down 183.90 points or 0.76 percent at 24,004.75. About 2048 shares advanced, 1778 shares declined, and 111 shares unchanged.

Among sectors, bank, capital goods, IT, pharma shed 1 percent each, while oil & gas, media rose 1 percent each.

BSE Midcap index was down 0.33 percent, while smallcap index ended flat.

Wipro, ICICI Bank, HDFC Bank, Tech Mahindra and Adani Ports were among major losers on the Nifty, while gainers included ONGC, Tata Motors, SBI Life Insurance, Titan Company and HUL.

#1 Total Business (Loans & Advances and Customer Deposits) grew from Rs 3,65,956 crores as of December 31, 2023 to Rs 4,58,213 crores as of December 31, 2024, YoY growth of 25.2 percent

#2 Loans & Advances grew from Rs 1,89,475 crores as of December 31, 2023 to Rs 2,30,947 crores as of December 31, 2024, YoY growth of 21.9 percent. The QoQ growth was 3.7 percent.

#3 Customer Deposits grew from Rs 1,76,481 crores as of December 31, 2023 to Rs 2,27,266 crores as of December 31, 2024, YoY growth of 28.8 percent. The QoQ growth was 4.2 percent.

#4 CASA Deposits increased from Rs 85,492 crores as on December 31, 2023 to Rs 1,13,091 crores as of December 31, 2024, YoY growth of 32.3 percent. The QoQ growth was 3.5 percent.

#5 CASA Ratio stood at 47.8 percent as of December 31, 2024 as compared to 46.8 percent as of December 31, 2023 and 48.9 percent as of September 30, 2024.

The company has successfully completed the Brazilian Health Authority (ANVISA) audit at it's Tanuku plant facility, in the month of

December 2024 without any observations.

#1 Recent concerns on regulatory intervention are overdone

#2 See near-term triggers from details on 5 mtpa capacity available to contract out

#3 Expect better-than-expected upcoming earnings as India's LNG import growth has been higher

#4 Competitive intensity with new terminals being lesser than consensus expectations

#5 Dahej terminal remains the most well connected to India's natural gas grid

#6 Valuation at 12x 1-year forward P/E as company gets closer to volume growth clarity in FY26 & F27 look attractive

#1 Reported standalone revenues came in above estimates

#2 Company added 10 new stores during quarter vs 6 (QoQ), taking the total count to 387 at end of Q3

The year has started on a positive note, with the Nifty gaining 1.25% and the Nifty 500 advancing 1.4% in the first week. This broad-based rally signals a stable start to 2025, setting the stage for optimism. While market valuations appear stretched, particularly in mid-and small-cap segments, history reminds us that such conditions can persist longer than expected. Investors should focus on businesses with steady earnings growth and the ability to adapt to evolving trends.

Reflecting on 2024, the year emphasized the importance of discipline over speculation. Despite pockets of volatility, markets did not see dramatic deviations. As broad-based rallies give way to more selective opportunities, the focus will shift to individual stock picks. Moving forward, staying disciplined about valuations and adhering to well-defined strategies will be crucial in navigating the ever-changing market landscape.

Looking ahead, global markets face headwinds with US 10-year Treasury yields above 4.6%, reflecting inflation concerns and muted expectations for Fed rate cuts in 2025. Domestically, sectors such as Financialization, Power Utilities, EMS, IT platforms, Auto, Hospitals, and Hotels present compelling opportunities. Additionally, the continuation of the China+1 trend, driven by geopolitical shifts, adds an exciting layer to the investment narrative. As always, maintaining a focus on quality and adaptability will be key to capitalizing on the opportunities 2025 has to offer.

The Ministry of Affairs (MCA) has conveyed the sanction of the Scheme of Amalgamation between Lanco Teesta Hydro Power and NHPC.

#1 Structural drivers to sustain healthy momentum

#2 Macro tailwinds in EMS to drive strong growth

#3 Slower growth in most durable segments structural drivers to support growth in ACs & cables

#4 EMS scale-up on track

Indian Rupee depreciated on Friday on weak tone in the domestic markets and a strong Dollar. A surge in crude oil prices also pressurised the Rupee. However, reports of RBI selling Dollars supported the Rupee at lower levels.

We expect Rupee to trade with a negative bias on a strong US Dollar and demand for Dollar from importers. FII outflows may also put pressure on the Rupee. However, any further intervention by the RBI may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 85.60 to Rs 86.

The Sensex was down 628.62 points or 0.79 percent at 79,315.09, and the Nifty was down 153.55 points or 0.63 percent at 24,035.10. About 1939 shares advanced, 1488 shares declined, and 91 shares unchanged.

The company’s subsidiary, Biocon Pharma, has received approval for Tacrolimus capsules in 0.5mg, 1mg, and 5mg strengths from the National Medical Products Administration (NMPA), China.

Tacrolimus is an immunosuppressant used in the treatment of organ transplant patients, reducing the body’s ability to reject a transplanted organ.

#1 Standalone revenue grows 17.5 percent to Rs 15,565.23 crore Vs Rs 13,247.33 crore, YoY

#2 Total number of stores as of December 2024 stands at 387, YoY

#1 Total sales plunge 17.5 percent to 3.25 lakh units Vs 3.93 lakh units, YoY

#2 Domestic sales decline 22.1 percent to 2.94 lakh units Vs 3.77 lakh units, YoY

#3 Exports jump 90.9 percent to 30,754 units Vs 16,110 units, YoY

#1 Gross advances increase 19.2 percent to Rs 6,816 crore Vs Rs 5,718 crore, YoY

#2 Total deposits grow 12 percent to Rs 8,384 crore Vs Rs 7,482 crore, YoY

#3 Gross NPA at 2.67 percent Vs 2.97 percent, YoY

#4 Gross NPA at 2.67 percent Vs 2.61 percent, QoQ

#1 Q3F25 initial update is a positive surprise

#2 Volume growth was much stronger than expected

#3 Domestic CD ratio at 72% stayed lower than the system

The company has received direction from the Gujarat Pollution Control Board, (GPCB) to close the operations at its plant, located at Plot No. 22/C -1, Phase 1, GIDC, Vapi -396195 Tal; Pardi , Dist: Valsad, Gujarat, India.

#1 Standalone revenue grows 58 percent to Rs 591.03 crore Vs Rs 373.76 crore, YoY

#2 Same store sales growth at 25 percent, YoY

#3 Total number of stores as of December 2024 stands at 160, YoY

#1 Gross advances increase 21.2 percent to Rs 2.29 lakh crore Vs Rs 1.89 lakh crore, YoY

#2 Total deposits up 13.5 percent at Rs 2.79 lakh crore Vs Rs 2.46 lakh crore, YoY

#3 CASA ratio drops to 49.28 percent Vs 50.19 percent, YoY

The company board approved to offer, issue and allot 44,74,000 at a price of Rs 315 each warrant on preferential basis to the persons other than promoters and promoter group for cash aggregating up to an amount of Rs 140,93,10,000.

Also, withdrawal of the proposed preferential issue which was announced by the company on September 03, 2024.

#1 Standalone revenue above estimates

#2 Topline growth was led by an average 12% increase in store count & same store sales growth

#3 Growth trend improved sequentially

#4 Company however remains well below the historical 20% topline growth algorithm for business

Cupid has received Stores Department, Government of Tanzania for supply of male condoms worth Rs 14.91 crore.

#1 Difficult times for Pyroxasulfone which increases risk for export growth prospects

#2 Exports already reflecting weakness

#3 Company has entered uncertainty zone as core business remain muted while new business is taking time to scale

#1 Reported robust volumes in December

#2 A strong December volume print indicates favorable inventory levels post festive season

#3 There are clear upside risks to FY25 volume forecast

#4 VECV reported modest growth with bus volume growth higher than goods CV volume growth

The company has received an order from Government of India, Ministry of Defence, Department of Military Affairs, Indian Airforce for supply of 16000 pairs NBC Suit Permeable MK V.

Afcons Infrastructure has received a Letter of Intent from the Govt of India, Ministry of Defence, Defence Research and Development Organisation (DRDO) for the execution of work related to the augmentation of MTC, creation of SAF, and workshop equipment for the ship lift facility (AMCSWF)

at Visakhapatnam.

The Sensex was down 205.74 points or 0.26 percent at 79,737.97, and the Nifty was down 51.20 points or 0.21 percent at 24,137.45. About 2079 shares advanced, 1260 shares declined, and 103 shares unchanged.

The company has incorporated its wholly owned subsidiary, PB Healthcare Services.

CELM Logistics SA de CV, Mexico, a step-down wholly owned overseas subsidiary of the company, has been voluntarily liquidated effective December 12, 2024.

Consequently, CELM Logistics SA de CV, Mexico, has ceased to be a step-down wholly owned overseas subsidiary of the company.

The Board has approved the divestment of the wiping business division of the company to Auto Ignition on a slump sale basis for Rs 20 crore.

Fitch Ratings has assigned a 'B+' rating to India-based IIFL Finance's (B+/Stable) USD1 billion secured global medium-term note (GMTN) programme.

Master Zairus has resigned as Chief Business Officer of the company, effective February 28, 2025, due to personal reasons.

#1 Total sales down 18% at 2,036 units Vs 2,485 units, YoY

#2 Exports down 84% at 51 units versus 326 units, YoY

The company’s subsidiary, Biocon Pharma, has received approval for Tacrolimus capsules in 0.5mg, 1mg, and 5mg strengths from the National Medical Products Administration (NMPA), China.

Tacrolimus is an immunosuppressant used in the treatment of organ transplant patients, reducing the body’s ability to reject a transplanted organ.

The company has received the second gross payment of Rs 250 crore under the Mega Insurance Policy against the insurance claim for Business Interruption (BI) losses caused by a flash flood that occurred on October 4 at the Teesta-V Power Station (510 MW).

#1 30% correction in stock in past 3 months appear overdone

#2 Consolidated EPS should also benefit from improved earnings outlook of HPCL

#3 Recent regulatory actions bode well for improved profitability

#4 Likely ramp-up in KG basin production in Q4FY25/Q1FY26 a key trigger for stock

The Indian drug regulator, the Central Drugs Standard Control Organization (CDSCO), has approved the new-generation oral antibiotic Miqnaf (nafithromycin).

Miqnaf is used in the treatment of community-acquired bacterial pneumonia (CABP) in adults.

The company has received a work order worth Rs 69.78 crore for the R3Y/R6Y repair of 43 WDS6 locomotives over three years, from Steel Authority of India - Bhilai Steel Plant.

The Sensex was down 487.97 points or 0.61 percent at 79,455.74, and the Nifty was down 120.60 points or 0.50 percent at 24,068.05. About 2083 shares advanced, 1054 shares declined, and 100 shares unchanged.

Gold edged up on Friday on a softer U.S. dollar and safe haven flows, with the metal en-route for a weekly gain as attention turned to U.S. President-elect Donald Trump's proposed policy changes that could influence the economic and interest rate outlook going forward.

Spot gold was up 0.2% at $2,661.19 per ounce, hitting its highest level since Dec. 13. Bullion is up about 1.6% for the week so far.

U.S. gold futures rose 0.2% to $2,675.40.