The Indian equity markets witnessed sharp declines, marking the second consecutive session of losses. Broader market indices and sectoral performances mirrored the bearish sentiment, with all sectors closing in the red.

Market Snapshot

• Nifty 50: 23,616 (-1.62%)

• Sensex: 77,964 (-1.59%)

• India VIX: 15.65 (+15.58%)

The India VIX spiked significantly, reflecting heightened volatility and increased investor uncertainty.

Sectoral Highlights

All sectoral indices ended in the red, with PSU Banks, Energy, and Realty sectors leading the losses:

• Top Losers:

• PSU Banks (-4%)

• Energy (-3.24%)

• Realty (-3.16%)

Top Movers

Gainers:

• ITI: ₹544 (+19.09%)

• PTC Industries: ₹15,645 (+8.62%)

Losers:

• ITC: ₹442 (-8.09%)

Key Corporate Updates

1. DCX Systems: Secured a $56.5M (₹483 Cr) export order from ELTA Systems, Israel, for CIWS module assemblies.

2. Equitas Bank: Reported 25.79% YoY deposit growth to ₹40,738 Cr and a 13.94% rise in advances to ₹37,345 Cr. Raised ₹500 Cr via Tier II bonds.

3. Metropolis Healthcare: Q3FY25 revenue grew 11% YoY, with Truhealth wellness services expanding by 25%. The company remains debt-free with ₹200 Cr cash reserves.

4. Nykaa: Reported mid-20% Q3FY25 revenue growth, with strong performance in its beauty segment. Its eB2B Superstore expanded to 260K retailers.

5. KNR Constructions: Awarded a ₹198.28 Cr irrigation project in Telangana under a JV, with a 24-month completion timeline.

Market Insights

The Nifty 50 recorded its steepest one-day fall since October 3, 2024, shedding 388 points (1.62%) to close at 23,616. Bank Nifty dropped over 2%, hitting its lowest level since mid-August 2024.

Broader markets underperformed, with the Nifty Midcap 100 and Smallcap 100 indices falling by 2.70% and 3.20%, respectively. The advance-decline ratio at the BSE stood at 0.19, its lowest since October 22, 2024, highlighting broad-based selling pressure.

Global Economic Calendar

Key global and domestic events to watch for in the coming days:

• January 7: India’s Annual GDP and IIP data for FY24-25.

• Global Payroll Data: Critical for assessing global economic conditions and potential monetary policy shifts.

Market Outlook

The steep fall has negated short-term bullish trends in the Nifty. With increased volatility, market participants are advised to stay cautious and focus on fundamentals.

For a deeper analysis of market movements and key strategies for the coming week, watch our exclusive YouTube video.

Stay informed. Stay ahead.