The key equity indices traded with significant gains in afternoon trade. The Nifty above the 23,300 level after hitting the day’s low of 23,170.65 in the morning trade. Banking, metal and realty shares advanced while FMCG and IT shares declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex, rallied 561 points or 0.73% to 77,165.52. The Nifty 50 index added 143.25 points or 0.62% to 23,346.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.54% and the S&P BSE Small-Cap index gained 0.79%.

The market breadth was positive. On the BSE, 2,427 shares rose and 1,525 shares fell. A total of 187 shares were unchanged.

Economy:

India’s foreign exchange (forex) reserves declined $8.714 billion to $625.871 billion in the week ended January 10, according to the latest RBI data.

For the week ended January 10, foreign currency assets, a major component of the reserves, decreased by $9.469 billion to $536.011 billion, the data released on Friday showed.

Gold reserves increased by $792 million to $67.883 billion during the week. The special drawing rights (SDRs) were down by $33 million to $17.781 billion, the RBI said.

India’s reserve position with the IMF was down by $4 million at $4.195 billion in the reporting week, the apex bank data showed.

Gainers & Losers:

Kotak Mahindra Bank (up 9.44%), Wipro (up 6.21%), Bajaj Finance (up 3.70%), Bajaj Finserv(up 3.25%) and NTPC (up 2.93%) were the major Nifty gainers.

SBI Life Insurance Company (down 2.90%), Trent (down 1.71%), Shriram Finance (down 1.56%), HDFC Life Insurance Company (down 1.23%) and Tata Consultancy Services (TCS) (down 2.13%) were the major Nifty losers.

Kotak Mahindra Bank surged 8.93% to Rs 1,915.710 after the private lender's net profit jumped 9.97% to Rs 3,304.80 crore on 13.86% rise in total income to Rs 16,050.38 crore in Q3 FY25 over Q3 FY24.

Wipro jumped 7.13% to Rs 301.95 after the IT major's consolidated net profit grew 4.51% to Rs 3,353.8 crore in Q3 FY25 as against Rs 3,208.8 crore posted in Q2 FY25. However, revenue from operations increased marginally to Rs 22,318.8 crore in the December 2024 quarter as against Rs 22,301.6 crore reported in the preceding quarter same year.

Bharti Airtel rose 0.48% while Bajaj Finance rallied 3.70% after the Bharti Airtel and Bajaj Finance announced a strategic partnership to create one of India’s largest digital platforms for financial services and transform last mile delivery. The partnership will bring Airtel’s highly engaged customer base of 370 million, more than 12 lakh strong distribution network, and Bajaj Finance’s diversified suite of 27 product lines, and distribution heft of over 5,000 branches and 70,000 field agents.

Stock in Spotlight:

Tech Mahindra fell 0.29%. The IT major's consolidated net profit slipped 21.35% to Rs 983.2 crore in Q3 FY25 as against Rs 1,250.1 crore reported in Q3 FY24. However, revenue from operations declined marginally 0.2% to Rs 13,285.6 crore in the December quarter, from Rs 13,313.2 crore recorded in the preceding quarter of FY24.

United Breweries (UBL) jumped 4.98% after the company announced the resumption of supply of its beer to Telangana Beverages Corporation (TGBCL) with immediate effect.

GMR Airports Infrastructure rose 1.54% after the company reported an 8.5% year-on-year (YoY) increase in passenger traffic across all GMR airports, reaching over 10.8 million passengers in December 2024.

One 97 Communications (Paytm) added 0.60% after the company’s net loss reduced to Rs 208.3 crore in Q3 FY25 from net loss of Rs 219.8 crore posted in Q3 FY24. Revenue from operations increased 10.14% quarter on quarter (QoQ) but fell by 35.88% year over year (YoY) to Rs 1,827.8 crore in the quarter ended 31 December 2024.

Adani Energy Solutions rose 2.14% after the company’s material subsidiary Adani Electricity Mumbai (AEML), has executed share purchase agreement (SPA) with Adani Properties (APPL) for acquiring 100% shares of Superheights Infraspace (SIPL).

Krystal Integrated Services declined 1.74% after the company’s consolidated net profit jumped 18.06% to Rs 10.59 crore in Q3 FY25 as against Rs 8.97 crore posted in Q3 FY24. However, revenue from operations fell 2.36% to Rs 276.37 crore as against Rs 283.07 crore posted in the corresponding quarter last year.

Global Markets:

Most of the European market advanced as investors are looking ahead to Trump’s inauguration ceremony. Additionally, investors are also gearing up for the World Economic Forum in Davos, Switzerland, this week. At the annual event, political and business leaders, among others, will gather in the Alpine resort for a wide range of debates, from how to increase economic growth to the challenges that artificial intelligence poses.

Asian stocks advanced on Monday, buoyed by hopes that U.S. President-elect Donald Trump may adopt a less aggressive stance toward China than previously feared when he assumes office later in the day.

Regional markets took cues from Wall Street’s strong performance on Friday. U.S. stocks rallied as robust bank earnings and expectations of interest rate cuts fueled investor optimism. The Dow Jones Industrial Average climbed 0.78%, hitting a new one-month high, while the S&P 500 rose 1.00%, and the NASDAQ Composite added 1.51%. Key performers included NVIDIA Corporation (+3.10%), Amazon.com Inc (+2.39%), and Goldman Sachs Group Inc (+2.11%).

Investor sentiment improved further after Trump avoided mentioning trade tariffs during a 'victory lap' rally in Washington on Sunday. However, he reiterated plans to crack down on immigration and reduce government oversight of domestic companies.

Despite the optimism, uncertainty lingers. Fox News Digital reported that Trump is expected to sign a record number of executive orders upon taking office on Monday. While details remain unclear, some orders could potentially include increased trade tariffs against China.

Previously, Trump had vowed to impose tariffs of up to 60% on Chinese imports and suggested similar measures targeting Mexico and Canada. Such policies could disrupt global trade and pose challenges for export-driven economies.

Meanwhile, the People’s Bank of China (PBOC) left its benchmark loan prime rate unchanged on Monday, as widely anticipated. Beijing appears to be holding off on new stimulus measures while awaiting greater clarity on Trump’s trade policies.

Lastly, U.S. markets will remain closed on Monday in observance of Martin Luther King, Jr. Day.