Market Overview

Indian equity markets ended lower on January 17, reflecting weak global sentiment and selling pressure in major stocks. The BSE Sensex dropped by 0.55%, closing at 76,619.33, while the Nifty 50 slipped 0.47% to settle at 23,203.20.

Broader markets displayed a mixed trend:

• Nifty Midcap 150 gained 0.12%, closing at 20,195.90.

• Nifty Smallcap 250 dipped 0.04% to 16,700.50.

The volatility index, India VIX, rose by 1.82% to 15.75, indicating heightened caution among investors.

Sectoral Performance

Top Performers:

• Nifty Oil & Gas: +1.56%

• Nifty Realty: +1.32%

• Nifty Metal: +1.18%

Lagging Sectors:

• Nifty IT: -2.68%

• Nifty Private Bank: -2.17%

• Nifty Financial Services: -1.46%

Top Gainers and Losers

Gainers (Nifty 50 Constituents):

• BPCL: +2.68%

• Reliance Industries: +2.65%

• Coal India: +2.52%

Losers (Nifty 50 Constituents):

• Infosys: -5.75%

• Axis Bank: -4.43%

• Shriram Finance: -3.71%

Volume Highlights

1. Gujarat State Petronet Limited (GSPL): +5.43%, closing at ₹370.00.

• Trading volumes soared 44.32x above the two-week average.

2. Mahindra EPC Irrigation Limited: +18.48%, closing at ₹144.90.

• Volumes increased by 41.80x, driven by strong buying interest.

3. Go Digit General Insurance Limited: -0.67%, closing at ₹289.95.

• Recorded 10.96x its average trading volume.

Earnings Highlights

1. Tech Mahindra:

• Revenue: ₹13,285.6 crore (flat, in line with estimates).

• EBIT: ₹1,350.2 crore (+5% QoQ), surpassing expectations.

• Net Profit: ₹988.8 crore (-21% QoQ).

2. Indian Hotels:

• Revenue: ₹2,533 crore (+29% YoY).

• EBITDA: ₹962 crore (+31.3% YoY), in line with estimates.

• Net Profit: ₹633 crore (+32.6% YoY).

3. Wipro:

• Revenue: ₹22,319 crore (+0.1% QoQ).

• EBIT Margin: 17.3% (exceeded estimates).

• Net Profit: ₹3,367 crore (+4% QoQ).

Global Cues and Metal Sector Outlook

China’s robust economic data boosted optimism in the metal sector:

• Q4 GDP Growth: 5.4% YoY (vs. 5% expected).

• Industrial Production (IIP): +6.2% (vs. 5.4% anticipated).

As the world’s largest metal consumer, China’s increased government spending and economic resilience are expected to drive global demand for metals, providing a favorable outlook for Indian metal stocks.

Market Breadth and Sentiment

The NSE saw 1,472 stocks advancing against 1,338 stocks declining, reflecting cautious optimism. However, the uptick in India VIX suggests heightened market volatility and investor caution.

Key Developments

• Block Deals: Notable activity observed in HDFC Bank, Axis Bank, and Happiest Minds.

• Futures Market: Both Nifty Futures and Bank Nifty Futures exhibited average trading volumes, hinting at restrained trading sentiment.

Global Economic Calendar

• U.S. Retail Sales Data: Scheduled for release later today.

• Eurozone Trade Balance: Expected to provide insights into European market trends.

• China’s Policy Announcements: Investors await updates on stimulus measures.

Outlook and Recommendations

Investors are advised to monitor global economic trends and sectoral dynamics closely. Stay tuned for our Sunday video on YouTube, where we will delve deeper into market trends, insights, and strategies for the upcoming week.

Stay informed. Stay ahead.