SSPL WEALTH PVT LTD

End - Session

Detailed review of the post market session of the day.

Market tanks: Sensex plunges 1,049 pts, Nifty ends at 23,085.95; VIX at 16 mark

13-Jan-25 17:03 Hrs IST

The domestic equity market experienced a sharp decline on Monday, with broad-based selling across sectors. Mid- and small-cap indices bore the brunt of the downturn, recording losses exceeding 4% each. Realty and metal stocks were particularly hard hit. '

The precipitous decline was fueled by global headwinds. Asian stocks declined following the release of the strong US jobs report on Friday, which dashed hopes for imminent interest rate cuts by the Federal Reserve. This, coupled with a volatile close on Wall Street, exacerbated the selling pressure in the Indian market.

The soaring US dollar, squeezing the Indian rupee to an all-time low, further intensified the agony for traders.

The ongoing earnings season will play a critical role in determining the market's direction. Disappointing corporate earnings could prolong the negative sentiment and deepen the market's decline.

The S&P BSE Sensex tumbled 1,048.90 points or 1.36% to 76,330.01. The Nifty 50 index slipped 345.55 points or 1.47% to 23,085.95. In four consecutive trading sessions, the Sensex and Nifty dropped by 2.39% and 2.62%, respectively.

Adani Enterprises (down 6.32%), HDFC Bank (down 1.63%) and ICICI Bank (down 1.51%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slumped 4.17% and the S&P BSE Small-Cap index dropped 4.14%.

The market breadth was weak. On the BSE, 555 shares rose and 3562 shares fell. A total of 131 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 7.25% to 16.

Indian Rupee hit a fresh record low against the US dollar on Monday. The currency opened at 86.12 and touched a fresh all-time low of 86.7025.

Economy:

India's retail inflation rate, measured by the Consumer Price Index (CPI), for December stood at 5.22%, showing a slight dip from 5.48% in November. November's CPI fell from a 14-month high of 6.21% in October, bringing the figure within the Reserve Bank of India's (RBI's) tolerance band of 2 to 6%.

India's industrial growth rose to a six-month high of 5.2% in November 2024, up from 3.7% in October, marking the third consecutive month of growth. The mining, manufacturing, and electricity sectors saw growth rates of 1.9%, 5.8%, and 4.4%, respectively.

Meanwhile, India's foreign exchange reserves fell by $5.7 billion to $634.59 billion for the week ended January 3, data released by the Reserve Bank of India (RBI) on Friday showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper grew 2.82% to 6.960 as compared with the previous close of 6.770.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.6150 compared with its close of 86.0400 during the previous trading session.

MCX Gold futures for the 5 February 2024 settlement rose 0.29% to Rs 78,650.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.32% to 110.

The United States 10-year bond yield added 0.34% to 4.790.

In the commodities market, Brent crude for March 2025 settlement advanced $ 1.39 or 1.74% to $81.15 a barrel.

Global Markets:

The U.S. stock futures point to a weak open Monday, with the Dow Jones Industrial Average futures down 152 points.

European and Asian shares tumbled on Monday, following a strong US jobs report on Friday that fueled concerns about persistent inflation. This led to a rise in US Treasury yields and boosted the dollar. Brent crude oil prices surged to their highest level in over four months, exceeding $81 per barrel, amid renewed US sanctions against Russia.

China's exports and imports in December beat expectations by a significant margin. Exports rose 10.7% from a year earlier, beating Reuters' expectations of 7.3% year-on-year growth. The country's imports in December unexpectedly rose 1%, compared with Reuters' estimates of a 1.5% decline.

The robust job data reinforced expectations that the Federal Reserve will maintain its current interest rate stance. Investors are now keenly awaiting key US inflation data this week, including the Consumer Price Index (CPI) report on Wednesday, the New York Fed's one-year inflation expectations on Monday, producer prices on Tuesday, and jobless claims on Thursday.

The US stock market closed lower on Friday after the strong jobs report reignited inflation fears. The Dow Jones Industrial Average plunged 1.63%, the S&P 500 declined 1.54%, and the Nasdaq Composite fell 1.63%.

Nvidia shares dropped 3%, while Advanced Micro Devices stock price fell 4.76% and Apple share price declined 2.41%. Constellation Energy stock jumped 25.16%, while Constellation Brands tanked 17.09%. Walgreens Boots Alliance stock price soared 27.55%.

The Labor Department reported that US nonfarm payrolls increased by 256,000 jobs in December, the largest increase since March. The unemployment rate fell to 4.1%.

Investors are now turning their attention to the upcoming fourth-quarter earnings season, which begins this week with several major Wall Street banks reporting their results.

Stocks in Spotlight:

Avenue Supermarts (Dmart) slipped 4.82%. The company's consolidated net profit increased 4.8% to Rs 723.72 crore in Q3 FY25 as compared with Rs 690.61 crore in Q3 FY24. Net sales jumped 17.7% YoY to Rs 15,972.55 crore during the quarter.

Just Dial tanked 12.98%. The company reported 42.71% jump in consolidated net profit to Rs 131.31 crore in Q3 FY25 as compared with Rs 92.01 crore in Q3 FY24. Revenue from operations increased 8.41% YoY to Rs 287.33 crore during the quarter.

PB Fintech dropped 8.90% to Rs 1691 after a foreign broker downgrades the stock to 'underweight' from 'equal-weight', citing slower profit growth and high valuations. The brokerage sets a price target of Rs 1,400.

Grasim Industries shed 3.25% after the company informed about a minor process safety incident that occurred at its Karwar plant in Karnataka on 11th January 2025, caused by a technical malfunction due to power tripping.

Biocon rose 1.15% after Biocon Biologics' Malaysian facilities receive Voluntary Action Indicated (VAI) classification from the US FDA following a recent inspection. This allows the company to continue operations while addressing observations made by the agency.

NCL Industries tumbled 4.67% after the company's cement production stood at 661,049 MT in Q3 FY25, registering a de-growth of 12% as compared with 749,703 MT produced in Q3 FY24.

Puravankara fell 6.90%. The company recorded sales value of Rs 1,265 crore in Q3 FY25, up 2% from Rs 1,241 crore posted in Q3 FY24.

NBCC (India) slipped 6.55%. The company informed that it has entered into a memorandum of understanding (MoU) with Sarkari Awas Nirman Avam Vitt Nigam for land development in Lucknow for an approximate value of Rs 3,500 crore.

Brigade Enterprises tanked 7.77%. The company informed that it has entered into a memorandum of understanding (MOU) with Technopark to develop a world trade center (WTC) and supporting infrastructure, including a business hotel at Thiruvananthapuram, Kerala.

Ola Electric Mobility fell 4.36% after the firm said that the Central Consumer Protection Authority (CCPA) requested additional documents from the company as part of its ongoing investigation on 10 January 2025.

Equinox India Developments declined 4%. The company reported consolidated net profit of Rs 22.17 crore in Q3 FY25 as against net loss of Rs 38.65 crore posted in Q3 FY24. Revenue from operations soared 177% YoY to Rs 278.50 crore in the quarter ended 31 December 2024.

Blue Star dropped 6.11% today, extending its losing streak to six sessions with a total decline of 22.54%.

New Listing:

Shares of Standard Glass Lining Technology settled at Rs 163.35 on the BSE, a premium of 16.68% as compared with the issue price of Rs 140.

The scrip was listed at Rs 176, exhibiting a premium of 25.71% to the issue price. The stock has hit a high of 181.70 and a low of 161. On the BSE, over 35.78 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer of Laxmi Dental received bids for 4,73,96,250 shares as against 89,70,371 shares on offer, according to stock exchange data at 17:00 IST on 13 January 2025. The issue was subscribed 5.28 times.

The issue opened for bidding on 13 January 2025, and it will close on 15 January 2025. The price band of the IPO is fixed between Rs 407 and Rs 428 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.