Closing Bell: Sensex, Nifty end flat amid sharp recovery; IT, FMCG, oil & gas stocks gain

Indian equity indices ended on flat note with Nifty below 23700 in the highly volatile session on January 8. At close, the Sensex was down 50.62 points or 0.06 percent at 78,148.49, and the Nifty was down 18.95 points or 0.08 percent at 23,688.95.

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

The Nifty index is trading within a range of 23,500 to 24200. In Wednesday's session, it formed a hammer candlestick on the daily chart, closing near its 200-day EMA, thereby strengthening the 23,500 support level. A decisive move will require the index to close below 23,500, which could lead to heightened selling pressure, or sustain above 24,000 to pave the way for a potential rally toward 24,500. Monitoring these crucial levels is essential to identify the next trend in the index.

Nifty witnessed smart upside recovery from the lows on Wednesday after showing a deep cut in the early-mid part of the session and settle the day lower by 18 points. Nifty opened on a positive note and slipped into sharp weakness soon after the opening. The market has started to recover from the swing low of 23496 levels and the upside recovery extended in the mid to later part of the session.

A small red candle was formed on the daily chart with long lower shadow. Technically, this market action indicates a formation of 'hammer' type candle pattern. Normally, such hammer formation after a reasonable decline calls for an impending trend reversal on the upside post confirmation.

Though, Nifty placed below the crucial 200day EMA at 23700 levels, there is an absence of sharp break down below this key support. This 200 DEMA has offered significant trend reversal on upside in the past.

The short term trend of Nifty remains weak. But the smart upside recovery from near 23500 levels is indicating chances of an upside bounce in the coming sessions. A sustainable move above the hurdle of 23800 levels could confirm upside bounce in the market. Immediate support is placed at 23496 levels.

Slowing economic growth projections and caution ahead of Q3 numbers added volatility in the market. However, the market witnessed a recovery from the day’s low owing to accumulation of beaten-down blue-chip stocks and in expectation of government reforms in the upcoming budget to lift the tepid economy.

The near-term sentiment is likely to be subdued due to the rise in US bond yield and fear of fewer rate cuts by the Fed

The market experienced a volatile session, with the Bears initially driving the Index down by over 200 points, primarily due to weaker GDP estimates. However, the Index found support around the 23,500 level, and a reversal was seen with the help of strong performance from the heavyweight stocks. This support helped the market recover and settle the trade at 23,688.95 with a minuscule loss of 18.95 points.

The Oil and Gas sector emerged as the top performer, followed by IT and FMCG, while the Pharma and PSU Banking sectors corrected the most. The broader market underperformed, with Mid and Smallcaps tumbling by over 2% at one point, though a partial recovery was noted.

The Index formed a Bullish Hammer candlestick pattern and tested the lower end of the Symmetrical Triangle Formation signalling the potential trend reversal. Today's low of 23,500, is now seen as immediate support. On the upside, the 23,800-23,900 zone will be crucial resistance.

Indian rupee ended 13 paise lower at 85.85 per dollar on Wednesday against Tuesday's close of 85.72.

Indian equity indices ended on flat note with Nifty below 23700 in the highly volatile session on January 8.

At close, the Sensex was down 50.62 points or 0.06 percent at 78,148.49, and the Nifty was down 18.95 points or 0.08 percent at 23,688.95. About 1336 shares advanced, 2466 shares declined, and 96 shares unchanged.

ONGC, ITC, Reliance Industries, TCS, Asian Paints were among the top gainers on the Nifty, while losers were Apollo Hospitals, Trent, Bajaj Auto, Adani Ports, Shriram Finance.

BSE Midcap and Smallcap indices shed 1 percent each.

On the sectoral front, FMCG, oil & gas, IT rose 0.3-1.5 percent, while PSU bank, pharma, metal, media, media, bank, auto shed 0.4-1 percent.

Afcons Infrastructure bags order worth Rs 1084.54 crore from Defence Research and Development Organisation

(DRDO).

Hyundai Motor India introduced new variants and feature upgrades for three of its popular models—VENUE, VERNA and Grand i10 NIOS.

The share price touched fresh 52-week high

QIB – 0.21 times

NII - 66.46 times

Retail – 117.28 times

Overall – 39.56 times

QIB – 177.85 times

NII - 238.18 times

Retail – 56.51 times

Overall – 120.59 times

ONGC top gainers on the Nifty50

Transformers & Rectifiers approves raising Rs 750 crore via QIP

#1 Telangana not revised beer price since FY20

#2 Huge losses in Telangana, significant overdue

The Sensex was down 164.67 points or 0.21 percent at 78,034.44, and the Nifty was down 60.80 points or 0.26 percent at 23,647.10. About 1016 shares advanced, 2420 shares declined, and 73 shares unchanged.

Suven Life Sciences today announced that the first subjects have been dosed in a Phase-1 clinical trial of SUVN-I6107 being conducted in USA under FDA acceptance of Investigational New Drug (IND) and issue of Study May Proceed letter.

#1 Revlimid patent expiry in 2026 poses a significant threat to earnings growth

#2 Revlimid drug contributed 40 percent to company’s FY24 EBITDA

#3 Observe management has mapped out strategies to mitigate impact of Revlimid loss

#4 Key asset launches of drugs in Canada & US are expected to largely offset revenue loss

#5 Reckon proactive measures shall mitigate about 80 percent of the expected EBITDA impact

#1 Expect dividend to rise by 114 percent YoY to Rs 17 in FY25 as FCF outlook improves

#2 Cash flow needs at promoter entity rise

#3 Estimate dividend to quadruple in 3 years to Rs 34 in FY27

#4 Dividend estimates are 28-45 percent ahead of consensus for FY25-27

#5 Growth levers are intact: rising mobile ARPU, expanding home broadband subs & rising FCF

#1 India deliveries increase 8.4 percent to 5.29 million tonnes (MT) Vs 4.88 million tonnes (MT), YoY

#2 UK production at 0 MT Vs 0.72 MT, YoY

#3 UK deliveries drop 12.5 percent to 0.56 MT Vs 0.64 MT, YoY

#4 Netherlands production surges 47.9 percent to 1.76 MT Vs 1.19 MT, YoY

#5 Netherlands deliveries jump 17.7 percent to 1.53 MT Vs 1.3 MT, YoY

Brigade Enterprises launched “Brigade Gateway at Neopolis”, approximately a 10-acre mixed use development in Neopolis, Kokapet, Hyderabad.

The Brigade Gateway Residences will be one of the tallest buildings in Hyderabad featuring around 600 premium residences in 3, 4 and duplex 5-bedroom formats across 58 floors.

The project has a revenue potential of Rs. 3,300 crores.

#1 Pre-sales grow 120 percent to Rs 2,770 crore Vs 1,260 crore, YoY

#2 Collections increases 40 percent to Rs 1,080 crore Vs Rs 770 crore, YoY

#3 Company records 29 percent growth in number of units sold at 1,518 units Vs 1,179 units, YoY

#4 Company reports 90 percent growth in area sold at 2.49 million square feet Vs 1.31 million square feet, YoY

The company  received the Letter of Acceptance for Design and build sewage treatment plants of installed capacity 120, 40 & 35 MLD and all appurtenant structures and allied Works with O & M of 15 years on DBOT basis From Indore Municipal Corporation, Indore.

The estimated order value is approximately Rs. 41646.07 lakhs wherein EMS limited is having 26 % share with the Other JV Partner.

#1 Total sales value drops 28.8 percent to Rs 1,388.6 crore Vs Rs 1,951.6 crore, YoY

#2 Average price realisation grows 16.5 percent to Rs 13,663 per square feet Vs Rs 11,732 per square feet, YoY

Delta Corp shares jumped nearly 5% on January 8 as Supreme Court agreed to hear online gaming industry's pleas against GST show cause notices on January 10.

The industry is seeking stay on show cause notices with concerns over potential coercive action by tax authorities, reported CNBC-TV18.

The industry has expressed concerns, saying the issue has been pending for several years, added CNBC-TV 18.

Online gaming companies have been sent 71 show-cause notices involving the evasion of Goods and Services Tax (GST) worth Rs 1.12 lakh crore in 2022-23 and the first seven months of 2023-24.

RVNL has signed an MoU with Dubai-based GBH International Contracting LLC (GBHIC). They will work together to explore business opportunities in the civil infrastructure sector in GCC countries.

#1 Q3 update shows continues outperformance on growth

#2 Management expects to add 30 ‘Kalyan’ & 15 ‘Candere’ stores in India in 4QFY25

#3 90 ‘Kalyan’ & 80 ‘Candere’ stores are expected in India in FY26

The Board has approved the issuance of 4 bonus equity shares for every 1 existing fully paid-up equity share of Rs 1 each held, to the eligible equity shareholders of the company as of the record date.

The company has received an administrative warning letter from SEBI for violating regulations. The warning letter pertains to the dissemination of information about plans for a four-fold expansion of the company-owned store network. SEBI observed that this information was first disseminated by promoter and Chairman-cum-Managing Director Bhavish Aggarwal on social media before disclosing it on the stock exchanges, thus breaching regulations that require listed entities to provide material information to stock exchanges and all investors in a timely manner.

Additionally, the Karnataka High Court has granted a six-week extension for the company to submit its response regarding the additional documents and information sought by the Central Consumer Protection Authority (CCPA).

#1 Q3 update shows continues outperformance on growth

#2 Management expects to add 30 ‘Kalyan’ & 15 ‘Candere’ stores in India in 4QFY25

#3 90 ‘Kalyan’ & 80 ‘Candere’ stores are expected in India in FY26

QIB – 0.08 times

NII - 45.30 times

Retail – 92.59 times

Overall – 29.24 times

QIB – 10.96 times

NII - 147.80 times

Retail – 46.08 times

Overall – 28.35 times

#1 Demand is recovering & company’s capacities remain optimally utilised

#2 Confident of core business revenue growth of 20 percent YoY in FY25

#3 Consolidated revenue to grow 23–25 percent in FY25

#4 Uniclan revenues to jump post addition of a third line; EBITDA margin to stay within 5–7 percent

#5 New pencil capacities to come on stream partially in Q4FY25 & fully in Q1FY26

#6 EBITDA margin likely to be 17–17.5 percent in FY25

#7 Given low-margin guidance, cutting FY25/26/27 EPS by 3 percent/6 percent/7 percent

The Sensex was down 555.01 points or 0.71 percent at 77,644.10, and the Nifty was down 163.25 points or 0.69 percent at 23,544.65. About 995 shares advanced, 2369 shares declined, and 77 shares unchanged.

Asian stocks followed losses in their US peers as growing concern about inflation led to a selloff in Treasuries, and as worsening sentiment toward China sapped sentiment.

The company has issued a letter of award to its subsidiary Purvah Green Power for the project to set up a 150 MW wind-solar hybrid power project, with an additional 150 MW capacity under the Greenshoe option.

The company has received Purchase Order from Adani Power and Mahan Energen Limited (Wholly Owned Subsidiary of Adani Power Limited), for Rs 41 crore (exclusive of GST) for supply of various ratings of Distribution Transformers.

The company has pledged the remaining 56.31 percent of its shares in its subsidiary, Bharat Serums & Vaccines, in favour of Catalyst Trusteeship as the Common Security Trustee for the benefit of the holders of the NCDs (non-convertible debentures).

Mahindra announced the prices for the top-end variant of its electric-origin SUVs - BE 6 and XEV 9e. BE 6 Pack Three is priced at Rs 26.9 lakh, and XEV 9e Pack Three at Rs 30.5 lakh. Phased test drives will start on January 14, 2025, while bookings for BE 6 and XEV 9e will open simultaneously on February 14, 2025. Deliveries are expected to begin in early March 2025.

The real estate developer has appointed Deepak Rastogi as the Group Chief Financial Officer (CFO), effective January 15, 2025.