Closing Bell: Trump looms over market, Nifty below 23,050, Sensex down 1,235 points

Indian benchmark indices ended on a weak note with Nifty around 23,000 on January 21 amid selling across the sectors. At close, the Sensex was down 1,235.08 points or 1.60 percent at 75,838.36, and the Nifty was down 320.10 points or 1.37 percent at 23,024.65.

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 experienced a volatile session on Tuesday, ultimately closing with a decline of nearly 1.5%. Despite an initial uptick, the benchmark index fluctuated significantly throughout the day before settling near its intraday low at 23,024.65. Selling pressure was broad-based, with sectors like realty, energy, and auto leading the losses. The broader indices also came under significant pressure, each shedding over 2%.

This decline signals a resumption of the negative trend following a brief consolidation phase, with the Nifty index likely to move towards the 22,700 level. Persistent selling by FIIs and a lackluster start to the earnings season are key factors dampening market sentiment. Additionally, the recent uptick in the volatility index, India VIX, is contributing to the prevailing cautious outlook. Given these conditions, we recommend adhering to a "sell on rise" strategy in the Nifty index while emphasizing robust risk management practices.

Nifty declined sharply, ending 320 points lower at 23,025 level (-1.4%) pressured by consistent FII selling, uncertainty around Trump’s tariff policies and weaker than expected Q3 results by several companies. Broader markets witnessed heavy selling pressure with Nifty Midcap100 and Smallcap100 indices shedding over 2% each. All sectoral indices ended in the red with Nifty Realty being the top loser, declining over 4% on account growth concerns and uncertainty regarding the start of interest rate cut cycle by the RBI.

FIIs sold equities worth 4,337 crore on Monday, leading to more than 50,000 crore outflows for January till date. Donald Trump’s remarks targeting BRICS nations, reiterating his intention to impose 100% tariffs on countries reducing their reliance on the US dollar for global trade, induced negative sentiments in the Indian market. Global markets are also intimidated by expectation of an interest rate hike by the Bank of Japan (BOJ) in its upcoming decision on Friday which could impact borrowing costs globally.

We expect markets to remain under pressure in the near term amid mixed quarterly earnings and heavy FPI selling. Investors will closely track the Q3 earnings of heavy-weights like HDFC Bank, HUL, BPCL to be announced tomorrow. Midcap IT stocks will be in focus as Coforge and Persistent systems also announce their results tomorrow.

Domestic markets experienced a significant decline today, with heightened volatility, followed by Trump's announcement of trade tariffs on neighbouring countries on his inauguration day, adding uncertainty into global markets. The weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, are likely to prompt further outflows from FIIs.

Mid and small-cap stocks underperformed compared to the main indices. The realty sector was hit the hardest due to weak pre-result updates, while banks suffered due to rising asset quality stress. Additionally, the expectation of an interest rate hike by BoJ is dampening market sentiment.

Nifty opened gap up however it could not sustain at higher levels and closed in the red down ~320 points. On the daily charts we can observe that the Nifty was consolidating in the range 23100 – 23500 since the last six trading sessions which has been decisively broken on the downside. The breakdown indicates resumption of the next leg of decline.

On the downside we expect the Nifty to drift towards 22670 which is the 38.2% Fibonacci retracement level of the rise from March, 2023 low 16828 to high 26277 of Sept, 2024. On the upside, 23280 – 23320 is the immediate hurdle zone from short term perspective.

Markets were on a cautious mode in the past few sessions, but witnessed frenzied selling on Tuesday as investors now fear that Trump's inaugural speech to safeguard America's interest could hurt economic prospects of many countries, including India, going ahead. While foreign investors continue to offload domestic shares at will, any further rise in US bond yields could trigger massive selling.

The market experienced significant volatility today, with bears taking control of the trade. The Mid and Smallcap sectors saw a sharp decline, pulling the Index lower, though a brief V-shaped recovery occurred. Despite this, the Index struggled to sustain higher levels and experienced further selling, dropping below the psychological support of 23,000. A minor recovery was witnessed in the final hour of trading to settle the trade at 23,024.65 with a loss of 320.10 points. All sectors closed in the red, with Realty and Energy being the primary underperformers. The Mid and Smallcap indices fell more than 2%, underperforming the benchmark.

The Index formed a large bearish candle, breaking its range, and indicating a stronger bearish trend. The negative momentum is expected to persist, with support seen at the 22,800 level, coinciding with long-term trendline support. Immediate resistance lies around 23,140.

Indian rupee ended flat at 86.58 per dollar on Tuesday versus previous close of 86.56.

Indian benchmark indices ended on a weak note with Nifty around 23,000 on January 21 amid selling across the sectors.

At close, the Sensex was down 1,235.08 points or 1.60 percent at 75,838.36, and the Nifty was down 320.10 points or 1.37 percent at 23,024.65. About 1019 shares advanced, 2552 shares declined, and 79 shares unchanged.

Trent, Adani Ports, NTPC, ICICI Bank, SBI were among biggest losers on the Nifty, while gainers included Apollo Hospitals, BPCL, Tata Consumer, JSW Steel, Shriram Finance.

BSE Midcap and smallcap indices shed 2 percent each.

All the sectoral indices ended in the red with Consumer Durables and realty indices plunged 4 percent each, while bank, power, telecom, capital goods down 2 percent each.

Indian Rupee opened higher on a weak tone in the US Dollar and overnight decline in crude oil prices. However, the domestic currency lost initial gains on the domestic markets tanked. A recovery in the US Dollar index also pressurised the Rupee. US Dollar recovered after US President Donald Trump threatened Canada and Mexico with 25% tariffs by February 1.

We expect Rupee to remain weak on underlying strength in the US Dollar and weak domestic markets. Importer demand for Dollars may further pressurise the Rupee. However, any further decline in crude oil prices may support the Rupee at lower levels. Markets may see some volatility amid announcements by the US Government. USDINR spot price is expected to trade in a range of Rs 86.35 to Rs 86.80.

Deep Onshore Services acquired 100% of the issued and paid-up equity share capital of Dolphin Offshore Shipping.

#12 Company reported a solid beat vs expectations on Q3 adjusted EBITDA

#2 Q3 beat was primarily driven by lower corporate overheads

#3 Net payment margin was slightly below estimates

#4 Paytm’s merchant business (devices, DLG-Loans) continues to see robust stickiness & sustained growth

#5 Company looks securely on course to achieve adjusted EBITDA break-even excluding UPI incentives in Q4

#1 Zomato doubled down on quick commerce guiding growth

#2 Management laid out an aggressive dark store plan

#3 Land grab has led to trade off between growth & margin

#4 Quick commerce saw margin pressures

#5 Food delivery beat estimates with margin to stabilize at 5 percent adjusted EBITDA

#6 Remain positive & see any correction in response to competition concerns

#1 Persistent loan growth pressures drives cut in long-term loan growth & ROE assumptions

#2 RoE of >15 percent is still attractive for a relatively defensive business & so is valuation

#3 Still see upside though it is likely to be delayed

Shares of Newgen Software plunged over 15 percent after brokerage firm Jefferies downgraded the stock to 'Underperform' from its earlier rating of 'Buy' after its December quarter results. The brokerage has also cut its price target on Newgen Software by 21 percent to Rs 1,240 from Rs 1,500 earlier.

Shares of Vodafone Idea (Vi) dropped around 5 percent on January 21 after the telecom giant issued a clarification over a news report which stated that the government is mulling a waiver of Rs 1 lakh crore worth of AGR dues of telecom companies.

After opening at Rs 9.94 apiece, the shares plunged around 6 percent to hit an intraday low of Rs 9.37 apiece so far. The shares, later, marginally recovered some losses and were trading 5 percent lower at Rs 9.45 at the time of writing. Read More

After receiving the necessary consideration, the company’s subsidiary, REC Power Development & Consultancy (RECPDCL), has transferred its entire shareholding in Rajasthan Part I Power Transmission at par value, along with all its assets and liabilities, to Adani Energy Solutions. The consideration includes a professional fee of Rs 15 crore and reimbursement of expenses.

#1Strong growth, but misses expectation in Q3

#2 Pre-sales for Q3 shows strong momentum, yet 24 percent less than expectations

#3 Q3 collection was also strong but operating cash flow was weak amidst high capex

#1 Q3 profit was 3 percent below estimates due to tad higher provision

#2 Normalisation can take time

#3 See muted loan growth near term, but expect improvement in FY26

#4 NIM should be steady

#5 Gross NPA should ease in Q4

ICICI Prudential Life Insurance Company, Tata Technologies, Dalmia Bharat, Aditya Birla Real Estate, Cyient DLM, India Cements, IndiaMART InterMESH, Indoco Remedies, Jana Small Finance Bank, KEI Industries, PNB Housing Finance, South Indian Bank, Tanla Platforms, and UCO Bank will announce their quarterly earnings on January 21.

#1 Sales volume down 18 percent YoY & down 21 percent QoQ at 0.81 msf

#2 Realisation up 11 percent YoY & up 12 percent QoQ at Rs 8,394/sqft

#3 Collections up 15 percent YoY & up 3 percent QoQ at Rs 567 crore

The Securities and Exchange Board of India is working on a platform which will allow IPO allotees to trade their shares before listing.

This will be done in the period when shares reach the demat account of the allottees till the time of listing.

Currently securities are freeze in the demat account till the time of listing. This will allow allottes to trade their securities in grey market even before the shares start trading.

The purpose of this is to prevent unlisted trading on the unorganised platforms.

Gold prices rose primarily due to the fall in the Dollar Index. President Trump indicated a staggered and gradual import tariff vs a one-off announced earlier. The softening of dollar prices provided strength to the yellow metal. COMEX gold also saw some strength, trading near the $2,720 level. The dollar weakened following reports that Trump may impose lower or staggered tariffs, rather than the higher, one-time tariffs previously anticipated.

A weaker dollar makes gold more attractive to foreign buyers, supporting the precious metal's appeal. Gold prices has the potential to hit the $3000/oz level if Trump decides to impose his tariffs as planned earlier.

Two things will be keenly watched moving ahead: the US interest rates and the movement of USD/DXY. We expect gold to remain a focal point in the near term until further clarity emerges on Trump's tariff policies.

Shares of Hindustan Aeronautics are sharply lower by more than two percent in trade on January 21, after an unconfirmed report by a defence news website cited a rockblock to HAL's deal with General Electric for the F-414 engine, meant for India's Light Combat Aircraft Tejas.

The Board has appointed Neeraj Parakh as the Executive Director and Chief Executive Officer (CEO) of the company for three years, effective January 20.

The Board will meet on January 23 to consider raising funds via the issuance of non-convertible debentures on a private placement basis.

#1 Q3 was a beat to estimates

#2 Share of mobile & EMS segment notably rose to 89 percent of sales mix now vs 67 percent in Q3FY24

#3 Segmental sales grew by 3x YoY, with new customer adds, order ramp-ups, with OPM at 3.5 percent

#4 Consumer electronics sales were down 32 percent YoY

#5 Risk-reward seems stretched at 107x FY26 PE

The Sensex was up 36.71 points or 0.05 percent at 77,110.15, and the Nifty was up 27.35 points or 0.12 percent at 23,372.10. About 1394 shares advanced, 1987 shares declined, and 130 shares unchanged.

Jio BlackRock Investment Advisers Private Limited, a joint venture company of Jio Financial Services has incorporated a wholly owned subsidiary named ‘Jio BlackRock Broking Private Limited’ on January 20, 2025 to carry on, inter alia, the business of broking subject to regulatory approvals.

DEE Development Engineers today announced the commission of 2nd phase of its new, cutting-edge manufacturing plant in Anjar, Gujarat, through which it has enhanced the capacity by 9,000 MT per annum and making the operational capacity to 12,000 MT per annum.

Tata Elxsi has joined forces with Minespider to launch MOBIUS+, an advanced battery lifecycle management platform.

#1 Mixed Q3 as expected, modest growth in food delivery but much better margin

#2 Quick comm reported strong growth but slipped into losses due to investment & high competition

#3 Management aims to double store count to 2,000 by Dec’25, one year earlier than past guidance

#4 Blinkit has a strong execution track record

#5 Aggressive expansion may force competition to follow suit

The luxury auto retailer has received a letter of intent from JSW MG Motor India to open new MG Select dealerships in Ahmedabad and Kolkata. At launch, the company will feature two models: the MG Cyberster and the MG M9 EV, with more models to follow later. Sales are expected to begin by May 2025. These dealerships will be established by the company’s subsidiary, Aeromark Cars.

The Sensex was down 647.71 points or 0.84 percent at 76,425.73, and the Nifty was down 140.35 points or 0.60 percent at 23,204.40. About 1175 shares advanced, 2152 shares declined, and 109 shares unchanged.

The company’s subsidiary, Torrent Green Energy (TGEPL), has incorporated its subsidiary, Torrent Urja 37.

The bank has agreed to transfer its depository business (DEMAT) to its wholly owned subsidiary, BOB Capital Markets, for Rs 1.53 crore.

The company has started mining operations at the Bhaskarpara commercial coal mine after receiving permission from the Collector (Mining Branch), Chhattisgarh. It expects coal extraction to begin next month.

#1 Q3 profit came in above estimates

#2 Retail slippages improved QoQ but were elevated

#3 Company guides for further Rs 300-350 crore provision utilisation in Q4FY25

#4 MFI business collections stayed tepid in Q3 – December improved but stayed elevated

#5 Q3 retail AUM growth moderated to 23 percent YoY; expect 20 percent YoY in FY25