Closing Bell: Market extends fall, Sensex dives 1,049 pts, Nifty below 23,100

Indian equity indices ended on weak note for the fourth consecutive sesson on January 13 with Nifty below 25,100. At close, the Sensex was down 1,048.90 points or 1.36 percent at 76,330.01, and the Nifty was down 345.55 points or 1.47 percent at 23,085.95.

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.

Bears remained at the helm as the Nifty continued to breach crucial levels. The index slipped below its previous swing low on the daily chart, indicating increasing bearishness. However, it held the 23,000 mark, which remains a key level to watch. If the Nifty sustains above 23,000 over the next few days, it could signal a potential recovery. Conversely, a decisive fall below this level might trigger a deeper correction.

The global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive. Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment. Expect volatility in the near term, with the 2025 budget, Q3 results, RBI policy, and Trump's policies are key factors to define the trend in the short-term.

The rupee weakened sharply by 0.60 paise, closing at 86.61, marking its lowest level amid a rapid fall of over 1% in the past week. The decline is attributed to higher crude prices, which climbed above $81 per barrel following sanctions on Russia by the Biden administration in the US. Elevated crude prices have further widened India’s import bill, adding pressure on the rupee. The trading range for the rupee is seen with support near 87.00 and resistance around 86.25, as participants keep a close eye on geopolitical developments and commodity trends.

US imposing sanctions on Russian oil exports pushed the rupee to a fresh low against the dollar, which in turn triggered massive correction in domestic equity markets as overseas investors continued to desert the local share market.

Wide-spread selling across the sectors fuelled along with massive exits in mid and small-cap stocks further worsened the sentiment. Rising crude oil prices would raise concerns of a spike in domestic inflation, which could further delay any rate cut hopes from the RBI in the near to medium term.

Markets witnessed a sharp decline on Monday, losing over 1.5% as the ongoing corrective phase intensified. After opening with a gap-down, the Nifty attempted to recover early losses but faced sustained selling pressure in heavyweight stocks across sectors, driving the index lower. It ultimately closed near the day’s low at 23,085.95.

The sell-off was broad-based, with realty, metal, and energy sectors taking the biggest hits. The broader indices also experienced significant losses, plunging nearly 4% each.

The Nifty has decisively broken below the November 2024 low of 23,263.15, accompanied by a noticeable rise in the volatility index, signaling further downside risks. The next significant support is at the 22,700 level, although oversold conditions in select heavyweight stocks may lead to brief pauses in the downtrend.

Traders are advised to maintain a “sell on rise” approach for the index while prioritizing risk management. Among sectors, IT, FMCG, and select pharma stocks are relatively stable, while others remain under considerable pressure. Participants should adjust their stock-specific positions accordingly.

Mayhem was seen in the Indian equity markets as relentless selling continued across the board and the Index kept on compounding its losses to conclude the session at 7 months low i.e. 23,085.95 with a loss of 345.55 points. All the sectors ended the trade in negative territory where Realty and Media witnessed an extreme beating. Carnage in the Broader markets dented the market sentiments as Mid and Smallcaps tumbled by 4.02% & 4.10% respectively.

The strong bearish candle on the daily chart denotes a strong underlying bearish trend; however, the Index is approaching its long-term trendline support (from Covid19 lows) i,e, at 22,800 from where a reversal can be anticipated as the markets have entered the oversold territory.

Indian rupee ended 61 paise lower at 86.58 per dollar on Monday versus Friday's close of 85.97.

Indian equity indices ended on weak note for the fourth consecutive sesson on January 13 with Nifty below 25,100.

At close, the Sensex was down 1,048.90 points or 1.36 percent at 76,330.01, and the Nifty was down 345.55 points or 1.47 percent at 23,085.95. About 533 shares advanced, 3414 shares declined, and 131 shares unchanged.

Biggest Nifty losers were Trent, Adani Enterprises, Bharat Electronics, BPCL, Adani Ports, while gainers included TCS, IndusInd Bank, Axis Bank and HUL.

All the sectoral indices ended in the red with realty index down 6.5 percent and oil & gas, capital goods, power, PSU, metal, media down 3-4 percent.

The BSE midcap and smallcap indices shed 4 percent each.

#1 Profit zooms 42.7% to Rs 131.3 crore Vs Rs 92.01 crore, YoY

#2 Revenue grows 8.4% to Rs 287.3 crore Vs Rs 265.05 crore, YoY

#3 EBITDA jumps 43.4% to Rs 86.6 crore Vs Rs 60.37 crore, YoY

#4 Margin expands 740 bps to 30.1% Vs 22.7%, YoY

QIB – 0.12 times

NII - 7.81 times

Retail – 10.77 times

Overall – 4.15 times

#1 Amidst low expectations, company delivered a positive Q3FY25

#2 Q3 EBITDA & PAT margin declines were largely due to higher grocery share

#3 Key highlight was unexpected announcement on change in CEO starting 2026

#4 Q3FY25 same-store sales growth seems to have recovered but it may be seasonal

#5 Expect limited same-store sales growth improvement further over next 1-2 quarters

#6 Weakness in FMCG share will continue & grocery will keep gaining as key strength

Adani Commodities, one of the promoters of Adani Wilmar, is set to exercise the oversubscription option in the offer-for-sale issue for a 1.51% stake on January 13, in addition to the base offer size of a 13.5% stake. Hence, the total number of shares in the offer of Adani Wilmar will be up to 15.01% of the paid-up equity share capital. The floor price for the issue is Rs 275 per share.

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Indian Rupee breached the 86 mark and hit a fresh low today on strong Dollar and weak global markets. FIIs continue to remain as net sellers while crude oil prices rose nearly 2%. US Dollar gained on better than expected US non-farm payrolls report, raising odds of a no rate hike by the US Federal Reserve in January. Michigan 1-year inflation expectations too were higher than expected at 3.3% in January vs 2.8% in December.

We expect Rupee to remain weak on strong Dollar and weak tone in the domestic markets. Rising crude oil prices and risk aversion in global markets may also weigh on the Rupee. Traders may remain cautious ahead of inflation data from India and US this week. USDINR spot price is expected to trade in a range of Rs 86.25 to Rs 86.80.

The Sensex was down 1,042.54 points or 1.35 percent at 76,336.37, and the Nifty was down 344.65 points or 1.47 percent at 23,086.85. About 418 shares advanced, 3,236 shares declined, and 92 shares unchanged.

HCL Technologies, Anand Rathi Wealth, Angel One, Delta Corp, Den Networks, Himadri Speciality Chemical, Lotus Chocolate Co, Marathon Nextgen Realty, Urja Global, Sarthak Industries, and Sree Jayalakshmi Autospin will release quarterly earnings scorecard on January 13.

QIB – 0.01 times

NII - 5.74 times

Retail – 9.28 times

Overall – 3.26 times

#1 Company stands to benefit from strong growth tailwinds for country’s equity capital markets

#2 Strong nominal growth In Indian listed corporate earnings acts as a powerful compounder

#3 Expecting 11 percent cash ADT CAGR & index options market share gain to 17 percent

#4 Options-reform driven lower clearing charges to drive 10 percent of EBITDA margin & 5 percent of RoE expansion

#5 With valuations near all-time highs, peg in line with global peers & risk-reward largely balanced

The bank has invited an Expression of Interest from asset reconstruction companies (ARCs) for 46 NPA (non-performing assets) accounts worth Rs 11,433.72 crore. Eligible ARCs and other transferees can submit their Expression of Interest by January 18, 2025, to participate in the e-auction of the 46 NPA accounts scheduled for January 30, 2025. Additionally, the bank has increased the MCLR (marginal cost of funds-based lending rate) by 5 bps for three-month, six-month, and one-year tenures, and by 10 bps for the two-year tenure, effective January 15.

#1 Q3 margin was lower than estimates

#2 Discounting intensity remains, though impact was lower sequentially, as per management

#3 Management commentary in recent quarters has raised doubts about growth algorithm

As the Union Budget 2025 approaches, we call upon the government to take bold and visionary steps to fortify India’s insurance landscape. Our armed forces stand as the ultimate protectors of our nation, braving unimaginable risks every day. It is only fitting that a centrally funded life and health insurance scheme be made mandatory for them at all levels—this is not just financial security, but a tribute to their unwavering service.

Equally crucial is the need to nurture a strong talent pipeline for the insurance industry. Establishing government-backed educational institutes and skill development centers will empower young professionals, ensuring insurance reaches the grassroots and secures every Indian’s future.

Additionally, granting a GST waiver on retail life insurance and offering greater tax incentives for corporates providing group life and health policies will be transformative. These measures will accelerate the ‘Insurance for All by 2047’ vision, paving the way for a more resilient and financially inclusive India. We look forward to a budget that prioritizes these reforms and propels the industry to unprecedented heights.

The Sensex was down 895.06 points or 1.16 percent at 76,483.85, and the Nifty was down 306.70 points or 1.31 percent at 23,124.80. About 453 shares advanced, 3149 shares declined, and 113 shares unchanged.

The company has received board approval for raising funds up to Rs 188.34 crore via a preferential issue.

The company has signed a joint venture agreement with AMPIN C&I Power to set up a solar power project in Haryana. The company will own a 26% shareholding in the joint venture, while the remainder 74% will be owned by AMPIN C&I Power. This project will be set up to supply power to the company as a captive generating plant for its manufacturing facility in Haryana.

QIB – 0.0 times

NII - 4.74 times

Retail – 8.15 times

Overall – 2.78 times

#1 Company well positioned to benefit from long-term growth in India auto sales

#2 New launches and capacity expansion to drive growth in the next 2-3 years

#3 Margin is set to remain in a narrow range

#4 Weaker-than expected model launches is main downside risk

The company has received a favourable ruling from the Income Tax Department, Mumbai, in several tax litigations, which resulted in a tax relief of Rs 174.61 crore. The company has received a combined order from the Commissioner of Income Tax, Mumbai, allowing all substantive grounds raised in appeals filed for assessment years 2012-13, 2015-16, 2016-17, and 2017-18.

Rupee sees biggest fall versus dollar amongst all currencies globally

QIB – 0.0 times

NII - 3.61 times

Retail – 6.87 times

Overall – 2.24 times

The company's subsidiary, TACC, has entered into a non-binding Memorandum of Understanding (MOU) with Ceylon Graphene Technologies to jointly explore the manufacturing of graphene and its derivatives.

The US Food and Drug Administration (FDA) has classified Biocon Biologics’ insulin facilities in Johor Bahru, Malaysia, as Voluntary Action Indicated (VAI). The US health regulator conducted a cGMP inspection of the facilities between September 15 and 27, 2024.

The company has executed a Sale Deed for the acquisition of a 16.12-acre land parcel in Gurugram, Haryana. The land has an overall potential developable area of approximately 2.73 million square feet.

The company entered into a Memorandum of Understanding (MoU) with Technopark to develop a World Trade Centre (WTC) and supporting infrastructure, including a business hotel at Thiruvananthapuram which Aimed at developing around 1.5 million sq.ft of infrastructure, spread across a

cluster of towers, which is (WTC) poised to bring in IT MNCs and provide ‘Grade A’ IT office space to the workforce in the park.

The company has entered into a Share Purchase Agreement with Enel Green Power Development S.r.l for the acquisition of a 100% 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.

Zen Technologies at its meeting held on January 13, 2025, has approved an investment(s) in M/s. Zen Technologies USA, Inc, a wholly owned subsidiary of the company, upto USD 10 million, in one or more tranches.

The company's subsidiary, JSW Neo Energy, has completed the acquisition of 125 MW of renewable energy assets from Hetero Labs and Hetero Drugs, housed under three special purpose vehicles, for Rs 630 crore.

Rail Vikas Nigam shares extend fall on third day

The company's subsidiary, NLC India Renewables, has signed a Joint Venture Agreement with Assam Power Distribution Company for the development of a solar power project in Assam.

The public sector lender has kept the marginal cost of funds-based lending rate (MCLR) unchanged for all tenures.

#1 Company stands to benefit from strong growth tailwinds for country’s equity capital markets

#2 Strong nominal growth In Indian listed corporate earnings acts as a powerful compounder

#3 Expecting 11 percent cash ADT CAGR & index options market share gain to 17 percent

#4 Options-reform driven lower clearing charges to drive 10 percent of EBITDA margin & 5 percent of RoE expansion

#5 With valuations near all-time highs, peg in line with global peers & risk-reward largely balanced

#1 Profit tanks 37.07% to Rs 93.1 crore Vs Rs 148 crore, YoY

#2 Revenue grows 21.3% to Rs 2,010 crore Vs Rs 1,656.8 crore, YoY

#3 EBITDA increases 13.7% to Rs 317.3 crore Vs Rs 279 crore, YoY

#4 Margin declines 100 bps to 15.8% Vs 16.8%, YoY

#5 Company declares interim dividend of Rs 5.50 per share

The management stated that being appraised at Level 5 signifies that Birlasoft has consistently demonstrated well-defined and managed processes and innovative practices. Birlasoft is now part of an elite group of organisations globally, among only 40 in

India and 600 worldwide, to achieve this distinction, they added.

The Slum Rehabilitation Authority, Brihanmumbai, has appointed the company as a developer for 10,300 square meters of land at Bandra Reclamation, Mumbai. The land is owned by the Maharashtra Housing and Area Development Authority. The company expects to be entitled to a free-sale component of around 3.2 lakh square feet from the development and redevelopment of the land.