Market Recap: Weak Global Cues Weigh on Indian Markets

Indian equity markets closed lower amid global trade tensions and profit-booking across key sectors. The Sensex declined 0.41% to 77,186.74, while the Nifty 50 fell 0.52% to 23,361.05, reflecting investor caution as geopolitical uncertainties and trade disputes resurfaced.

The broader market saw selling pressure, with the Nifty Midcap 150 dropping 0.98% to 19,579.20, and the Nifty Smallcap 250 slipping 1.74% to 15,677.65. Volatility remained elevated, as India VIX rose 1.82% to 14.35, indicating heightened market uncertainty.

Key Market Movers

Top Gainers

• Saregama India Ltd. (₹541.75, +11.0%) – A sharp rise in trading volumes fueled the stock’s rally.

• Ajanta Pharma Ltd. (₹2,982.75, +9.72%) – The stock extended its five-day winning streak, reflecting strong investor confidence.

Top Losers

• Elecon Engineering Company Ltd. (₹480.35, -9.28%) – Downgrades from analysts led to significant sell-off pressure.

Stock-Specific Updates

Divi’s Labs (₹5,884.10, +4.73%)

Divi’s Laboratories reported strong Q3 results, with net profit surging 65% YoY to ₹589 crore, driven by a 25% increase in revenue to ₹2,319 crore. Additionally, the company commenced operations at its Kakinada Unit III, with full completion expected within six months.

Paytm (₹774.70, +4.25%)

Paytm Cloud Technologies Ltd. approved a $1 million investment to acquire a 25% stake in Brazilian embedded finance startup Dinie, marking its entry into the Brazilian MSME financial services market.

L&T Technology Services (₹5,500.85, +1.52%)

LTTS joined the Arizona Technology Council, aiming to expand smart city and digitization solutions globally. The collaboration seeks to enhance innovation and sustainability in Arizona’s tech ecosystem.

Engineers India (₹162.86, -3.33%)

The company has been appointed as Project Management Consultant for an Academic Institute of National Importance, with a project cost of ₹1,200 crore.

TVS Holdings (₹9,713.50, -3.32%)

TVS Holdings completed the acquisition of an 80.74% stake in Home Credit India for ₹554 crore, positioning itself as a key player in India’s financial services sector.

Sectoral Performance

Despite the broader decline, Nifty IT (+0.68%), Nifty Consumer Durables (+0.55%), and Nifty Healthcare (+0.19%) ended in the green. However, heavy losses were seen in:

• Nifty Oil & Gas (-2.22%)

• Nifty Metal (-1.73%)

• Nifty PSU Bank (-1.60%)

Notable Nifty 50 Movers

• Gainers: Bajaj Finance (+5.12%), Shriram Finance (+3.06%), M&M (+3.00%)

• Losers: Larsen & Toubro (-4.69%), Tata Consumer Products (-3.07%), Hero MotoCorp (-2.98%)

Macroeconomic Developments & Global Cues

• U.S. Tariffs Announcement: President Donald Trump imposed new tariffs on imports from Mexico, Canada, and China, raising concerns about slower global economic growth and rising consumer costs.

• India’s Gold & Silver Import Duty: Import duties on gold and silver will increase starting May 1st, potentially impacting jewelry and commodity markets.

Upcoming Global Economic Events

• February 5–7: RBI Monetary Policy Committee (MPC) Meeting – Market expects a possible rate cut decision.

• February 7: U.S. Non-Farm Payroll Data – Key indicator for U.S. labor market strength.

• February 8: India’s State Election Results – Potential influence on market sentiment.

• February 9: China CPI & PPI Data – Crucial inflationary indicators for global markets.

Market Outlook

The market remains cautiously optimistic, with short-term volatility expected due to global trade concerns and upcoming economic events. Investors are advised to adopt a stock-specific approach and closely track macroeconomic indicators.

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