Closing Bell: Sensex up 454 pts, Nifty around 23,350 led by power, telecom, financials

Indian equity indices ended on strong note with Nifty around 23,350 on January 20. At close, the Sensex was up 454.11 points or 0.59 percent at 77,073.44, and the Nifty was up 141.55 points or 0.61 percent at 23,344.75.

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 markets began the week on a positive note, gaining over half a percent amid mixed signals. After a flat opening, strength in heavyweight stocks, particularly in the banking sector, propelled the index higher during the first half, followed by a range-bound movement for the rest of the session. Sectoral trends remained mixed, with banking and metal sectors posting notable gains, while auto and FMCG sectors saw marginal declines. Mirroring the benchmark, the broader indices also performed well, recording gains between 0.8% and 1%.

Markets appear to be consolidating following the recent decline, with the ongoing earnings season keeping participants engaged. Additionally, budget-related themes are attracting selective buying interest. While there has been limited alignment with global markets lately, developments following Trump’s inauguration will be closely monitored for potential cues. Amid this environment, we recommend exercising caution with aggressive positions and awaiting greater clarity.

Optimism across most of the Asian and European markets ahead of Trump taking charge as the US President today weighed positively on Indian benchmarks as well, with banking and telecom stocks leading the recovery. While it was just a sentimental impact, the undertone continues to be of uncertainty marked with extreme volatility. Local investors will be more focused on the Union Budget to be announced on February 1 and what measures would FM take to address the ongoing slowdown and Trump's trade policies.

After a volatile start, the market saw a strong upward move, ending the session with a 141.55-point gain to close at 23,344.75. Most sectors, except Auto and FMCG, ended in the green, with Banking and Metal indices leading the gains. The Broader Markets outperformed the Frontline Index, as Mid and Smallcaps rose over 0.90%. The Index has formed a bullish candle and ended the session at the higher end of its consolidation range. Tomorrow's trade will be crucial for further clarity. A breakout above the current level could see the index reaching the 23,570-23,690 zone. Immediate resistance levels are at 23,360 and 23,570, while support is seen at 23,200.

A strong positive sentiment from Asian markets bolstered domestic markets, starting the week on a healthy note. Further, a robust initial set of earnings from the banking and financial sectors triggered a broad-based rally, driven by the likelihood of improved earnings in the near future. However, uncertainties surrounding Trump's policies continue to linger, with investors eagerly waiting for more clarity. Oil prices remaining high is another key concern.

The Union Budget 2025 holds immense potential to address key challenges and propel the real estate sector toward sustainable growth. Developers are looking for measures such as reducing GST on luxury and under-construction properties, increasing tax deductions on home loan interest, and reviving the Credit Linked Subsidy Scheme to make housing more accessible. Simplifying approval processes and offering subsidies for green projects can also drive innovation and efficiency within the sector.

Easing borrowing costs through interest rate cuts and introducing targeted tax incentives for individuals and developers can help balance rising home prices and high borrowing costs, which have impacted new home sales. Stimulus measures for SMEs and MSMEs, coupled with job creation and skilling initiatives, can boost overall economic activity, indirectly benefiting the real estate market.

As a major contributor to the country’s GDP, the sector needs transformative measures in this Budget to meet housing demands, maintain momentum, and achieve the $1 trillion target by 2030. With the right support, the sector can build on its resilience and drive economic growth further.

Indian rupee ended marginally higher at 86.56 per dollar on Monday versus Friday's close of 86.61.

Indian equity indices ended on strong note with Nifty around 23,350 on January 20.

At close, the Sensex was up 454.11 points or 0.59 percent at 77,073.44, and the Nifty was up 141.55 points or 0.61 percent at 23,344.75. About 2399 shares advanced, 1492 shares declined, and 160 shares unchanged.

Kotak Mahindra Bank, Wipro, Bajaj Finance, NTPC, Bajaj Finserv were among major gainers on the Nifty, while losers were SBI Life Insurance, Shriram Finance, Trent, HDFC Life, Adani Ports.

Among sectors, except auto and FMCG, all other indices ended in the green with bank, media, metal, capital goods, PSU, telecom, power, PSU bank up 1-2 percent.

BSE midcap index was up 0.66 percent and smallcap index rose nearly 1 percent.

QIB – 151.45 times

NII - 407.84 times

Retail – 88.06 times

Overall – 174.69 times

#1 Better growth, no regulatory conversation on bank-channel sales

#2 Guided for FY25 growth in-line with 9MFY25

#3 Medium-term topline growth of 15 percent+ with VNB margin of 26-29 percent

#1 Target maintained at Rs 280

#2 Delivered in-line revenue & significant margin beat

#3 Growth is likely to trail peers in FY26

#4 Stock could get a boost from likely EPS upgrades in near term

Indian Rupee strengthened against the Dollar on weak tone in the US Dollar index and positive domestic markets. Overnight decline in in crude oil prices also supported the Rupee. US Dollar rose on Friday as the economic data releases from the US were better than estimates.

We expect Rupee to remain weak on underlying strength in the US Dollar and importer demand for Dollars. However, any further correction in crude oil prices and extended gains in the domestic markets may support the Rupee at lower levels. US markets will remain closed due to Martin Luther King Junior Day holiday. USDINR spot price is expected to trade in a range of Rs 86.40 to Rs 86.75.

The Sensex was up 552.73 points or 0.72 percent at 77,172.06, and the Nifty was up 145.65 points or 0.63 percent at 23,348.85. About 2316 shares advanced, 1310 shares declined, and 136 shares unchanged.

Strides Pharma Science's stepdown wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Acetaminophen and Ibuprofen Tablets, 125 mg /250 mg (OTC), from the United States Food & Drug Administration (USFDA).

#1 Q3 saw better operating internals, business growth continuing to be robust

#2 Lower slippages this quarter and very strong opex efficiency despite RBI embargo in place

#3 Tweak opex estimates lower for FY25 which has broadly provided delta to FY26/FY27 results by 1-2 percent

#1 VNB growth better than expected

#2 Decline in group APE will lead to decline in overall APE

#1 Gross NPA 2.55% vs 2.72% QoQ

#2 Operating Profit Rs 2270 cr, up 28% YoY

#3 Provisions Rs 1030 cr, down 10% YoY

#4 Net interest margin 3.33% vs 3.12% YoY

#1 Central Bank of India Q3 provisions Rs 557 cr, down 7% QoQ

#2 Gross NPA 3.86% vs 4.59% QoQ

#3 Other income Rs 1230 cr, down 7.5% YoY

#1 Jupiter Hospitals to build 300 bed hospital in Thane for Rs 400 crore

#1 ICICI Securities Q3 revenue Rs 1590 crore, up 20% YoY

#2 ICICI Securities Q3 total cost up 30% YoY to Rs 909 cr

QIB – 25.14 times

NII - 305.02 times

Retail – 73.88 times

Overall – 109.49 times

#1 Steady progress towards medium-term goals

#2 Expect dollar revenue growth of 0.4-9.2 percent & margin of 9.3-13.2 percent over FY25-27

#3 Other cases of turnaround also took a 3-year period

#4 Deal pipeline remains strong, business repair underway

#1 Beat across parameters, especially on margin

#2 Discretionary demand is improving

#3 Q4 guidance tad softer than expectations

#4 Raise FY25-27 EPS estimates by 2-5 percent

#1 Raise FY25-27 VNB estimates by up to 1 percent

#2 SBI channel has shown an improvement in growth

#3 Maintained FY25 guidance of 15 percent growth on retail APE

#1 Margin strong, agency scale-up a key positive

#2 Attractive entry point, trades at benign levels

#3 Company focussed on improving margin profile

#1 Asset monetization to improve cashflows

#2 Looks to raise USD 2 billion from the sale of food/FMCG business

#3 Close to commissioning Navi Mumbai International Airport

#4 Initiating capex on doubling cell + module capacity

QIB – 7.14 times

NII - 264.89 times

Retail – 68.71 times

Overall – 93.16 times

One 97 Communications Paytm, Zomato, APL Apollo Tubes, Central Bank of India, Dixon Technologies, IDBI Bank, Indian Overseas Bank, Indian Railway Finance Corporation, ICICI Securities, Jammu & Kashmir Bank, L&T Finance, MCX India, Newgen Software Technologies, Oberoi Realty, and Sunteck Realty will announce their quarterly earnings on January 20.

#1 Q3 profit was ahead of estimates & above consensus, helped also by change in accounting

#2 Stock could do well in the near term as a defensive within financials

#3 Weak topline growth though is a limiting factor to material upside

#1 Estimate lower loan CAGR of 11.8 percent over FY24-27

#2 Estimate higher credit cost of 2.9 percent between FY24-FY27

#3 Cut profit estimate by 39.6 percent/20.4 percent/11.7 percent over FY25/FY26/FY27 respectively

#4 Stock will continue to see pressure in the near-tomedium term due to microfinance & credit cards

#5 Additional stress in the unsecured segment will keep credit costs elevated

Cyient has expanded its strategic partnership with Deutsche Aircraft, a leading German regional aircraft manufacturer.

Cyient has been awarded a multi-year contract to manage the advanced technical documentation to support the product lifecycle of safety-critical aviation systems for the 40-seater regional turboprop the D328eco.

#1 Stand out performance in a tough quarter

#2 Healthy loan growth & stable asset quality led to 4.1 percent QoQ core PpOP growth

#3 Faster loan growth & greater operating efficiencies would drive a 2.2 percent RoA over FY25-27

#4 Management believes that personal loan and credit-card delinquencies are now stable

#5 Microcredit delinquencies have not yet peaked

#6 Squeaky-clean franchisee will keep credit cost stable over FY25-27 at 0.6 percent of advances

Passenger traffic in December 2024 increased by 9% YoY and 6% MoM to 1.08 crore, while aircraft movements rose by 7% YoY and 5% MoM to 64,364.

The company has acquired a 15.86% stake held by NYLIM Jacob Ballas India Fund III LLC and an 8.05% stake held by Resurgence PE Investments in Agilus Diagnostics. Further, in December 2024, it had already acquired a 7.61% stake held by the International Finance Corporation in Agilus.

With these acquisitions, the company has acquired a total of 31.52% shareholding in Agilus held by PE investors. Consequently, the company's shareholding in Agilus increased to 89.2%.

The company's subsidiary, IsmartU India (IIPL), has entered into a binding Memorandum of Understanding with KHY Electronic India, whereby IIPL will acquire land, buildings, machinery, and other tangible assets from KHY for Rs 133 crore.

Despite premium valuations and healthy response, Laxmi Dental listing was healthy in line with our expectations. We believe the investors demand was on the back of the company being India’s only end-to-end integrated dental product company operating in a niche and growing dental solutions space commanding a higher valuation multiple. We believe Laxmi Dental is well-positioned to capture a significant share in the dental solutions space.

While considering the volatile market trend, we recommend conservative allotted investors can think of booking profits above our expectations on listing day. While long term investors should consider to hold it for long term despite knowing short term volatility post listing & risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts.

The Gujarat Pollution Control Board has issued an order to Camlin Fine Sciences for the closure of its operations at the Bharuch unit. The action to close operations came due to allegations of contaminated water or wastewater found in the stormwater drain, minimal biomass observed in the aeration tank, and ETP sludge found stored in an open area near the ETP.

#1 Capacity addition in 9MFY25 lower than our estimate

#2 Cut FY25-27 capacity estimates by 4-6 GW & EBITDA by 4-23 percent

#3 Long-term growth story remain intact

#4 Trading at a premium to JSW Energy

#1 Growth momentum to continue

#2 Demand tailwinds in place, valuation is attractive

#3 Cable, wire & white goods have structural long-term growth drivers

#4 Can sustain 25 percent+ EPS CAGR beyond FY27

#1 Q3 volume growth of 3 percent & 9MFY25 of 7 percent YoY lower than our FY25 estimate of 12 percent

#2 Weak industry growth partially offset by market share gains

#3 Expect market share to 30 percent+ by FY27 from current level of 27 percent

#4 Reduce FY25-27 volume estimates by 3 percent

#1 All round beat; triggers in play

#2 Easing trends in retail unsecured loans may ease concerns

#3 Raise estimates by 1-2 percent

The Board has approved raising funds up to Rs 4,200 crore via public issue, rights issue, preferential allotment, private placement, including qualified institutional placement (QIP) in one or more tranches.

The Sensex was up 578.86 points or 0.76 percent at 77,198.19, and the Nifty was up 148.70 points or 0.64 percent at 23,351.90. About 2130 shares advanced, 1376 shares declined, and 146 shares unchanged.

The pharma company has received approval from the USFDA to conduct a Phase II(b) clinical trial for Usnoflast. Usnoflast is a novel oral NLRP3 inflammasome inhibitor for patients with Amyotrophic Lateral Sclerosis (ALS).

The company has received a Letter of Intent (LOI) of Rs 277.20 crore for the execution of engineering, procurement and construction (EPC) works for ground mount solar power project of 105 MWp (DC) capacity on turnkey basis.

Bharti Airtel and Bajaj Finance today announced a strategic partnership to create one of India’s largest digital platforms for financial services and transform last mile delivery.

The company has completed the acquisition of a 49% stake in Flash Electronics (India) from existing shareholders.

One 97 Communications Paytm, Zomato, APL Apollo Tubes, Central Bank of India, Dixon Technologies, IDBI Bank, Indian Overseas Bank, Indian Railway Finance Corporation, ICICI Securities, Jammu & Kashmir Bank, L&T Finance, MCX India, Newgen Software Technologies, Oberoi Realty, and Sunteck Realty will announce their quarterly earnings on January 20.

#1 Stabilisation of revenue with worst likely behind in key verticals

#2 Steady improvement in new deal wins

#3 Likelihood of stable margin in Q4 despite wage hike

#4 Upside risks to margin appear low currently

#5 Stock is fairly valued at current levels

The company has commissioned a 6.3 MW (Phase-XI) ISTS-connected wind power project at the Sidhpur site in Devbhoomi Dwarka. With this, the entire 252 MW project capacity has been commissioned.

One 97 Communications Paytm, Zomato, APL Apollo Tubes, Central Bank of India, Dixon Technologies, IDBI Bank, Indian Overseas Bank, Indian Railway Finance Corporation, ICICI Securities, Jammu & Kashmir Bank, L&T Finance, MCX India, Newgen Software Technologies, Oberoi Realty, and Sunteck Realty will announce their quarterly earnings on January 20.