Closing Bell: Nifty below 22,850, Sensex down 824 points; all sectors in the red

Indian equity indices ended on weak note on January 27 with Nifty below 22,850. At close, the Sensex was down 824.29 points or 1.08 percent at 75,366.17, and the Nifty was down 263.05 points or 1.14 percent at 22,829.15.

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.

A combination of factors like weak US and European market cues, monthly F&O expiry later this week, persistent FII fund outflows, and muted third quarter corporate earnings so far have continued to push investors in reducing their equity exposure.

Strong selling in IT, telecom, metals, oil & gas and realty dragged Sensex below the 76k mark, whereas investors continued to exit mid and small-cap stocks on worries that slowdown in earnings will fail to match the higher valuations assigned to them.

The index has slipped from its recent consolidation on the daily chart, heightening pessimism across the Indian equity market. Sentiment is likely to favor bearish trades in the short term, particularly as long as the index remains below 23,000. On the lower side, the prevailing weakness could potentially lead to a decline toward 22,500.

Nifty witnessed a gap down opening and traded with a negative bias throughout the day. It closed down ~263 points. On the daily charts, Nifty has broken down the two week consolidation on the downside signaling resumption of the next leg of decline. We expect the Nifty to drift lower towards 22670.

On the upside, now the zone of 23000 – 23050 shall act as an immediate hurdle zone as per the principle of role reversal. Pain was more evident in the broader market with the mid and small cap index correcting 2.8% and 4% respectively. Overall, we continue to maintain our negative outlook on the index.

Today, the benchmark indices extended their losses. Among sectors, all major sectoral indices witnessed profit booking at higher levels, but the Capital Markets and Media indices lost the most, with Capital Markets down 5.6% and Media down 4.5%.

Technically, after a gap-down opening, the market consistently faced selling pressure at higher levels and formed a bearish candle on daily charts, closing below the 23,000/76300 mark, which is largely negative. We believe that the current market texture is weak and volatile; therefore, level-based trading would be the ideal strategy for day traders. The 23,000/76300 level will be key to watch, as long as it trades below this threshold, weak sentiment is likely to continue.

On the downside, the market could slip to 22,750-22,650/75200-74800. However, if it rises above 23,000/76300, the sentiment may change. Above this level, a pullback formation is likely to continue until it reaches 23,100-23,150/76700-76900.

The markets continued to be under the control of the Bears, with significant losses in the Mid and Smallcap segments, putting pressure on the Index to trade lower. During the day, the Index broke through its key support level of 22,800 but managed to recover slightly, ending the session at 22,829.15 with a loss of 263.05 points. All sectors closed lower, with Media and IT taking the hardest hits. The underperformance of the broader market persisted, as Mid and Smallcaps saw declines of 2.75% and 3.84%, respectively.

The Index tested its long-term trendline support at 22,800, and a further breach below this level could push the Index lower, potentially targeting the 22,300-22,500 zone. Conversely, a decisive move above 23,400 is essential to confirm a trend reversal. Immediate resistance and support are now positioned at 23,000 and 22,660, respectively.

Broad-based selling across sectors plummeted the Indian market amidst tepid earnings and weak sentiments across the globe. Mid and small caps remained in their downward trajectory over expensive valuations. FIIs are on a selling spree due to moderation in economic growth and INR depreciation. The weak sentiments were further exacerbated as the US trade confrontation continued, like with Colombia this time. Heightened volatility is here to stay this week ahead the upcoming events risk like the FOMC meeting, expiry week, and Union budget.

Indian rupee ended 13 paise lower at 86.33 per dollar on Monday versus Friday's close of 86.20.

Indian equity indices ended on weak note on January 27 with Nifty below 22,850.

At close, the Sensex was down 824.29 points or 1.08 percent at 75,366.17, and the Nifty was down 263.05 points or 1.14 percent at 22,829.15. About 541 shares advanced, 3399 shares declined, and 115 shares unchanged.

HCL Technologies, Tech Mahindra, Wipro, Hindalco Industries, Shriram Finance were among the top losers on the Nifty, while gainers included ICICI Bank, Britannia Industries, M&M, HUL and SBI.

BSE Midcap index fell 2.7 percent and smallcap index slipped 3.5 percent.

All the sectoral indices ended in the red with Media index down 4.7 percent, IT index shed 3.4 percent, oil & gas, metal, consumer durables, pharma, energy down 2 percent each.

#1 Q3 profit was in-line with estimates

#2 Sharp opex control & better fee drove core PpOP

#3 CASA growth was well ahead of system & LDR remains comfortable at 85 percent

#4 Asset quality was stable with net slippages at 0.8 percent

#5 Earnings were aided by small drawdown in contingency reserves adjusted

Indian Rupee declined on weak domestic markets and a strong US Dollar. FII outflows too pressurised the Rupee. However, a decline in crude oil prices cushioned the downside.

We expect Rupee to trade with negative bias on positive US Dollar and weak tone in the domestic markets. Persistent FII outflows and importer demand for Dollars may continue to pressurise the Rupee. However, weakness in crude oil prices and central bank intervention may support the Rupee. Investors may remain cautious ahead of FOMC meeting outcome this week. USDINR spot price is expected to trade in a range of Rs 86.15 to Rs 86.65.

#1 Q3FY25 was a modest quarter

#2 Company retained commissioning guidance which leaves a steep target for coming 2 months

#3 Company best hedge across thermal & renewable at valuations below global peers

#4 Projects have been delayed & power demand is soft

#5 Confidence is from order placement & rising interest in inorganic route specially with state generators

#1 Company continues to deliver well with profit ahead of estimates

#2 Healthy deposit growth of 14 percent & CASA growth of 17 percent aided loan growth of 14 percent

#3 Low LDR (Domestic) of 85 percent & high LCR of 122 percent offer support

#4 Asset quality has held up well; in fact, this is also evident in trends from other banks

#1 Q3 saw small EBITDA beat

#2 Subsidiaries' performance was better than expected

#3 Implied EBITDA drove small beat on consolidated level

#4 Consolidated net debt moderated QoQ

The Sensex was down 830.98 points or 1.09 percent at 75,359.48, and the Nifty was down 272.95 points or 1.18 percent at 22,819.25. About 400 shares advanced, 3272 shares declined, and 97 shares unchanged.

#1 Credit cost remained flat QoQ though margin fell on higher liquidity

#2 Broad-based strength in growth

#3 Management remains confident on growth and asset quality

#1 Growth strategy looks more defendable than peers' given its scale, market tiering

#2 Expect company to deliver 20 percent revenue & 27 percent profit CAGR over FY24-29

#3 Look for RoE & RoCE to improve from 9 percent & 10 percent in FY24 to 16 percent & 15 percent in FY29, respectively

#4 Key downside risks include customers' changing proposition towards convenience

#5 Significant change or departure at senior management level is also key downside

#6 Other key downside risks include promoter exit risk & slower SSSG or store expansion

The markets are now eagerly awaiting key developments such as the upcoming budget and Donald Trump's trade and tariff decisions. If the budget takes a negative turn, there is potential for the markets to experience a downturn. However, Mehta remains optimistic, highlighting that the underlying strength of the economy, driven by factors like the Maha Kumbh Mela and the wedding season, will support growth.

Despite the potential volatility, we are positive about the long-term market outlook. The economic fundamentals remain robust, and the resilience of sectors driven by cultural and social events suggests that the markets could rebound even if short-term challenges arise, underscoring the belief that the economy will continue to expand regardless of temporary setbacks.

#1 Q3 profit was in-line

#2 Asset quality expectedly took a hit during quarter

#3 Gross/net slippages rising to 4 percent/3 percent from higher stress in unsecured portfolio

#4 Gross/net slippages will remain elevated in Q4 but could likely moderate later

#5 Commentary has been consistent among lenders but remain watchful here

#6 NII growth was muted

Shares of pan-India real estate developer Omaxe soared by over 4% in a weak market on January 27, on the back of the launch of a new branding to undertake collaborative property projects that promise Rs 5,000 crore of revenue potential.

Omaxe said ongoing projects that will be undertaken under 'BeTogether' would entail a total investment of over Rs 2,800 crore over 3-5 years with a potential of generating revenue over Rs 5,000 crore.

The initiative will eye Joint Ventures, collaboration and development through Public-Private Partnerships (PPP) in spaces where infrastructure gaps exist, and can potentially drive socio-economic growth. The realtor said 'BeTogether' will lead the urban real estate 'into a new era'.

The recently-listed shares of DAM Capital Advisors Limited jumped over 12 percent on January 27 to hit an intraday high of Rs 314.75 apiece. This comes after the company reported a 144 percent surge in net profit at Rs 51.5 crore for the quarter ended December 31, 2024.

#1 Q3 profit missed estimates, as had factored some reversal of MFI contingency provisions

#2 Lower earnings for FY26/F27 given tough macro & likely moderation in revenue growth

#3 Note better performance compared to peers on growth & asset quality ex MFI segment

#1 Q3 Sales/EBITDA growing 18 percent/57 percent YoY above estimates & in-line with consensus

#2 EBITDA margin improved on back of improvement in GMS & operating leverage

#3 Company did not provide quantitative topline guidance for FY25

#4 Management mentioned that they have laid strong foundations for medium term growth

#1 Despite some weakness in top end, healthy growth in mid-end give us confidence

#2 Opening of Andhra Pradesh market may drive 10 percent+ prestige growth in FY25

#3 Benign cost environ, 18 percent EBITDA margin in 9-month make more confident on FY25 EBITDA margin

Nippon Ispat Singapore (Pte), a non-operating overseas subsidiary of the company domiciled in Singapore, has been under winding-up and was liquidated effective January 24.

The company said a US businessman Digvijay Gaekwad-owned Danny Gaekwad has made a proposal to acquire a 26% stake in it. Danny sought permission from Indian market regulator SEBI to make an open offer of Rs 275 per share for Religare, a 17% premium to the current offer.

The company has commissioned its new cGMP-compliant facility for Niacinamide, with high bio-content at Bharuch, Gujarat. The new facility will manufacture nutraceuticals and dietary-active ingredients for human consumption.

The Board has appointed Venugopal Lambu as CEO (Designate) & Wholetime Director for five years, effective January 24.

#1 Stock will fall near term given continued challenges in unsecured segment

#2 Management lowered its growth guidance and expects higher credit costs in FY25

#3 Bank didn't change RoA guidance given cost control

#4 Reduce FY26/FY27 EPS by 11 percent/5 percent

#1 Q3 broadly in-line over sales/EBITDA growth

#2 Reported EBITDA margin came in primarily on account of better GMS

#3 Company expects to continue to outperform in India/Brazil markets

#4 Expecting steady recovery in Germany & US

#5 Company on track to improve overall business margin

The recently-listed shares of DAM Capital Advisors Limited jumped over 12 percent on January 27 to hit an intraday high of Rs 314.75 apiece. This comes after the company reported a 144 percent surge in net profit at Rs 51.5 crore for the quarter ended December 31, 2024. The stock has dodged the overall market trend which has seen a significant decline on January 27.

The shares however later pared some gains and were trading at Rs 294 (nearly 5 percent higher) at 12 pm. Notably, the company had announced its Q3 results in the post-market hours of January 24 when the shares closed 2.37 percent lower at Rs 278. At current level, the stock is over 6 percent higher than its 52-week-low record of Rs 276.2. It however is still around 36 percent lower than its 52-week-high record of Rs 456.90.

The company reported a robust 33 percent year-on-year (YoY) growth in revenue, rising to Rs  185.65 crore from Rs 140.07 crore in the same quarter last year.

Earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 59 percent YoY to Rs  65.95 crore, with a significant margin expansion of 591 basis points, reaching 35.5 percent.

Profit After Tax (PAT) also jumped 57 percent YoY to Rs 46.78 crore, as PAT margins improved from 21.3 percent to 25.2 percent.

Apollo Hospitals has signed a significant Memorandum of Understanding (MoU) with Mayapada Healthcare Group, Indonesia. The partnership is set to transform the region’s healthcare landscape by enhancing medical capabilities, clinical programs, and operational excellence.

The MoU was signed in the esteemed presence of the Hon’ble Minister of Health, Government of Indonesia--Budi Gunadi Sadikin, reaffirming both organizations’ commitment to improving healthcare delivery in Indonesia and the surrounding region.

Through this collaboration, Apollo Hospitals will provide management expertise and operational services for Mayapada Healthcare’s upcoming hospital in Batam, Indonesia. The agreement also includes the exchange of clinical knowledge and program development in specialized fields such as oncology, cardiology, neurology, and transplant surgery.

The public sector lender has announced that its Board will meet on January 29 to consider raising long-term bonds for financing infrastructure & affordable housing and green/sustainable bonds.

The Reserve Bank of India has imposed a monetary penalty of Rs 1 crore on Bank of India, Rs 3.31 crore on Jammu and Kashmir Bank, and Rs 1.63 crore on Canara Bank.

#1 Q3 core revenue was led by a jump in tenancies

#2 Upgrade FY25 EBITDA/profit by 16 percent/26 percent to factor in Vi’s past collections

#3 Forecast Indus’ core revenue & EBITDA CAGR of 10 percent by FY27

The board of directors of the company, at its meeting held on January 27, 2025, has considered and approved a tender buyback of upto 6,00,000 fully paid-up equity shares, of face value of Rs 5 each of the company, representing about 1.79% of the total paid-up equity shares of the company, at a price of Rs 305 per equity share, payable in cash for an aggregate amount of Rs 18.30 crore.

#1 Company had been expecting new deals to start coming through from Q3 but this may be delayed

#2 As per company, new deals may be delayed as US biotech funding revival is lagging its expectation

#3 Revenue increased Q3 after three quarters of declines

#4 Management slightly lowered FY25 its guidance to single-digit revenue growth

#5 With delay to revival in biotech funding, see no positive triggers for stock over next 9-12 months

The company's subsidiary, Birla Estates, has entered a joint venture with Mitsubishi Estate Co. for a Rs 560 crore investment in a residential housing development in Southeast Bengaluru through a special purpose vehicle (SPV).

The company has received an assessment order from the Joint Commissioner CGST & CX, Thane Commissionerate, demanding interest of Rs 6.58 crore and a penalty of Rs 87.07 crore for the delayed payment of tax liability on supplies.

#1 Showed good volume growth in Q3

#2 Growth has softened in January on a high base

#3 Expect volumes to continue being good

#4 Expect an update on coupling sometime in 1st half of this calendar year, retain underperform

The renewables business vertical of L&T has been selected by Masdar, as one of the preferred Engineering, Procurement and Construction (EPC) contractors for the north site of the world's first 24/7 solar PV and battery storage gigascale project which

will be built in Abu Dhabi.

Abu Dhabi Future Energy Company PJSC - Masdar, the UAE’s clean energy leader, in collaboration with EWEC (Emirates Water and Electricity Company), announced at Abu Dhabi Sustainability Week (ADSW) that it is developing the gigascale project, capable of delivering up to 1 gigawatt (GW) of baseload power 24 hours a day, seven days a week.

The project will feature a 5.2GW (DC) solar photovoltaic (PV) plant and both coupled with a 19 gigawatt-hour (GWh) BESS, making it the largest solar and BESS project in the world. The project will constitute a north site and a south site, amounting to 2.6GW and 9.5GWh PV capacity each.

#1 Healthy growth, expansion in lending spreads were key highlights of Q3

#2 Key highlights include contained asset quality/credit costs in Q3

#3 Cut EPS by 1.6-2.5 percent over FY25-27 as increase operating costs to factor higher spend on branding

#4 Retain buy given constructive outlook

#1 Stellar Q3 operating efficiency with a big swing from under-recovery in H1

#2 2x rise in incentives led by growth in Thermal PAF & supportive FY25-29 regulatory regime

#3 Strong execution in FY24 led to double-digit regulated equity growth

#4 Large capacity additions are lined up in Q4

#1 Delivered strong Q3 with lower-than-expected core slippage and credit cost

#2 Deposit growth was soft because bank optimised its borrowing mix

#3 CRR cut, refinance lines & redemption of RIDF of augmented liabilities, reducing need to raise deposits

#4 In this environment when CASA growth has fallen for peers, company grew CASA at 12.5 percent YoY

#1 A miss on revenue, but in-line margin & profit in Q3

#2 India business was higher, offsetting impact of decline in Brazil & US

#3 Revenue was affected by the shutdown of insulin CMO facility for maintenance

#4 Company expects to double-digit revenue growth & margin expansion over mid-term

The company's subsidiary, Venwind Refex Power, has signed a term sheet with Torrent Solar Power for the supply of WTGs and tubular towers for 153.7 MW wind power projects, including tubular towers and operation & maintenance, in Karnataka.

The company has received a letter of acceptance for projects worth Rs 87.56 crore from Greater Chennai Corporation. The projects involve the construction of integrated stormwater drain works in M1 & M2 components in the Kovalam basin in expanded areas of Greater Chennai Corporation, Package 16, covering various streets in Zone 15 under the KfW fund.