Nifty slips as IT and Financials struggle; broader market outperforms
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Market Overview
The Nifty opened with a 35-point gap down at 23,277.10 and quickly moved lower as the market reacted to the earnings reports of index heavyweights. Infosys and Axis Bank faced selling pressure, while Reliance’s gains helped offset some of the decline. The market remained in a narrow 50-point range between 23,220 and 23,270 for nearly 90 minutes before intraday selling pushed the index to the day's low of 23,100.35.
Between 11:00 AM and 12:30 PM, the market attempted a recovery, retesting the 23,250 level. However, in the final three hours of trading, it stayed within a tight range of 23,200 to 23,250. Ultimately, the Nifty closed at 23,203.20, down by 0.46%.
With macroeconomic factors continuing to weigh on market sentiment, the outlook remains cautious. Going forward, market trends will likely be shaped by global economic developments and earnings reports from key index heavyweights. Investors are keenly watching for signs of stabilization to ease the ongoing selling pressure.
Broader Market Performance:
Although the headline indices closed in the red, the broader market outperformed, with a healthier advance-to-decline ratio. On the NSE, 1,472 stocks advanced, 1,338 declined, and 94 remained unchanged.
Sectoral Performance:
The overall sectoral performance displayed mixed trends, with seven sectors closing in the green and five sectors ending in the red. Nifty Realty emerged as the top gainer, rising by 1.32%, while Nifty IT was the biggest loser, declining by 2.68% as earnings from Infy failed to impress the markets.
Note: The above numbers for Commodity futures were taken around 4 pm.
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 23rd January:
The maximum Call Open Interest (OI) is observed at 23,500, followed by 23,700. Meanwhile, the maximum Put Open Interest (OI) is at 22,700, followed by 23,200.
Immediate support is identified in the 23,000–22,900 range, while resistance is expected between 23,350 and 23,500.
Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.
Source: Sensibull
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What’s happening in India
India's foreign exchange reserves extended their decline for the sixth consecutive week, reaching a 10-month low of $625.87 billion as of January 10, according to data from the Reserve Bank of India. The reserves dropped by $8.72 billion during the week, marking the largest weekly fall in two months. Over the past five weeks, the reserves have declined by a total of $23.5 billion and are down $79 billion from their all-time high of $704.89 billion recorded in late September. Dive deeper
Caplin Steriles Limited, a subsidiary of Caplin Point Laboratories, has received USFDA approval for its ANDA for Levetiracetam in Sodium Chloride Injection in 500mg/100mL, 1000mg/100mL, and 1500mg/100mL infusion bags. This marks the second Ready-To-Use Infusion Bag product approved, with additional products under review. Dive deeper
Maruti Suzuki has launched its first electric SUV, the e VITARA, built on the HEARTECT-e platform. It offers two battery options with a range of over 500 km, advanced safety features, and a comprehensive electric eco-solution for a seamless ownership experience. Dive deeper
Hero MotoCorp unveiled new models at the Bharat Mobility Global Expo 2025, including the Xtreme 250R, Xpulse 210, and Xoom 125 & 160 scooters. The company also showcased its first flex-fuel motorcycle and VIDA V2 electric scooter, alongside the "Hero Premia" premium dealership concept. Dive deeper
Power Grid Corporation of India Limited has acquired Gadag II and Koppal II Transmission Limited under the Tariff Based Competitive Bidding (TBCB) route. The acquisition, valued at approximately ₹13.24 crore, involves the construction of a 400kV transmission line in Karnataka and the augmentation of transformation capacity at the Koppal-II and Gadag-II substations. Dive deeper
TVS Motor Company entered the Moroccan market, in partnership with Hindi Motors, launching models such as the TVS Ntorq 125, Raider 125, and Apache 160/200 through Motorsports Maroc. This move strengthens TVS's presence in Africa and its global two-wheeler market position. Dive deeper
Reliance Industries Limited has approved the acquisition of a 100% stake in Lakadia B Power Transmission Limited (LPTL) from REC Power Development and Consultancy Limited for up to ₹8 crore. The acquisition, part of a project to augment the Lakadia Substation's capacity, will make LPTL a wholly owned subsidiary. The transaction is expected to be completed by March 2025. Dive deeper
Qualcomm and MapmyIndia have teamed up to deliver advanced automotive connectivity solutions, enhancing vehicle safety and affordability in India. This collaboration supports the 'Make in India' initiative. Dive deeper
Mangalore Refinery and Petrochemicals Limited (MRPL) flagged off its first Toluene parcel on January 16, 2025, marking a milestone in its self-reliance journey. The event, led by MRPL's Managing Director Shri Mundkur Shyamprasad Kamath, emphasizes the company’s efforts to reduce India's reliance on chemical imports and support the 'Atmanirbhar Bharat' initiative. Dive deeper
G R Infraprojects Limited has acquired 100% equity in Bijapur REZ Transmission Limited (BRTL) from PFC Consulting Limited for ₹11.4 crore. BRTL, incorporated on June 28, 2024, is focused on power transmission. This acquisition aligns with G R Infraprojects' project to integrate Bijapur REZ in Karnataka. Dive deeper
The Association of Investment Bankers of India (AIBI) forecasts 1,000 IPOs in the next two fiscal years, potentially raising Rs 3 lakh crore by FY26. India led global IPO volumes in 2024, surpassing the US and Europe. The IPO market is expected to continue growing, with significant capital formation through Indian bourses. Dive deeper
Aether Industries' shares surged over 7% after reporting a 150% increase in Q3 FY25 net profit to Rs 43.3 crore, up from Rs 17.4 crore last year. The company also saw a 41.4% rise in revenue, reaching Rs 219.6 crore. Dive deeper
The Prime Minister inaugurated the Bharat Mobility Global Expo 2025, emphasizing the industry's growth driven by infrastructure development and government initiatives. The event, featuring over 100 new launches, is set to attract 5 lakh visitors from around the world. Dive deeper
The Reserve Bank of India injected ₹40,000 crore into the banking system via two operations to address a liquidity deficit exceeding ₹2 lakh crore. The funds were sourced from a ₹30,760 crore overnight variable rate repo (VRR) auction and a ₹9,892 crore government securities buyback. Dive deeper
BPCL's stock gained 2.51% following the announcement of the Rs 31,802 crore loan from the SBI Consortium for the expansion of its Bina refinery and petrochemical complex. The expansion aims to increase refinery capacity and produce key petrochemical products like Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and Polypropylene (PP). Dive deeper
HFCL secured a Rs 2,501.30 crore work order from BSNL for BharatNet Phase III in Punjab. The contract involves design, construction, and maintenance of the middle-mile network, with a completion timeline of three years and a 10-year maintenance period. The stock closed at Rs 103.75, up by 1.38%. Dive deeper
The Reserve Bank of India (RBI) has allowed banks to open rupee accounts at overseas branches for non-residents to settle transactions in Indian rupees. This aims to support the rupee's internationalization and reduce reliance on freely convertible currencies. Dive deeper
Jio Platforms Ltd (JPL) reported a 25.95% rise in net profit for Q3 FY25, driven by tariff hikes, subscriber growth, and increased data usage. ARPU rose 4.2% quarter-on-quarter to Rs 203.3. The full impact of the tariff hikes is expected to be realized in Q4 FY25 and Q1 FY26. JPL’s net profit for the quarter stood at Rs 6,861 crore, up from Rs 5,447 crore last year. Dive deeper
What’s happening globally
China's economy grew by 5.4% in the fourth quarter compared to a year earlier, surpassing analysts' expectations and helping the government meet its annual growth target, according to official data released on January 17. This marks the fastest quarterly growth since the second quarter of 2023. Dive deeper
China has proposed a $3.7 billion investment in Sri Lanka to build an oil refinery at Hambantota, marking the country’s largest foreign investment. The project, part of the Belt and Road Initiative, aims to enhance bilateral ties despite previous concerns over strategic infrastructure. Dive deeper
Oil prices rose in Asian trading on Friday, set for a fourth consecutive weekly gain, supported by stronger-than-expected Chinese economic data that boosted market sentiment. However, the gains were limited by easing geopolitical tensions in the Middle East, while recent U.S. sanctions on Russian crude trade continued to provide underlying support. Dive deeper
The FTSE 100 is poised to close at a record high, driven by investor optimism regarding potential interest rate cuts later this year. Additionally, a stabilizing bond market has bolstered market sentiment. Dive deeper
Quarterly results
In this section, we'll dive into all the key highlights from today's intriguing results, covering the most impactful performances and standout moments. The numbers are comparable on a year-on-year (YoY) basis.
Reliance Industries (RELIANCE) (2.83%)
Financials:
Net Profit: ₹18,540 crore, up 7% YoY.
Revenue: ₹2.43 lakh crore, up 6.7% YoY.
EBITDA: ₹43,789 crore, up 8% YoY.
EBITDA Margin: 18.3%, up 20 bps YoY.
Key Highlights:
The company experienced strong growth in digital services, driven by 5G subscriber upgrades.
The retail business benefitted from festive demand and growth in consumption.
Oil & gas revenues declined due to reduced gas and condensate volumes, but higher CBM gas volumes and prices provided some offset.
The O2C segment was impacted by global oil demand trends and lower crude oil prices, affecting refining margins.
Jio-bp recorded its highest-ever quarterly sales for petrol, diesel, and aviation fuel.
Outlook:
The company expects continued growth in digital services and retail, despite challenges in oil & gas due to price fluctuations.
The company is focused on driving growth through its consumer and digital platforms while maintaining leadership in energy and retail.
Wipro Limited (WIPRO) (-2.12%)
Financials:
Net Profit: ₹3,354 crore, up 24.4% YoY.
Revenue: ₹22,319 crore, up 0.5% YoY.
EBITDA: ₹3,899 crore, up 4.5% QoQ.
EBITDA Margin: 17.5%, up 0.7% QoQ.
Dollar Revenue: $2,629.1 million, slightly down 1% YoY.
Operating Cash Flow: ₹49.3 billion, up 3% YoY.
Key Highlights:
Interim dividend of ₹6 per share, with a record date of January 28, 2025.
The company achieved its highest EBITDA margin in the past three years, expanding to 17.5%.
Wipro revised its capital allocation policy to increase payouts to 70% or more of net income over three years.
Large deal bookings amounted to $961 million, reflecting strong demand.
Outlook:
The company saw a 35% decline in large deal wins from the previous quarter but achieved consistent margin improvements.
The company expects revenue growth in constant currency for Q4 to be between -1% and +1%.
Sbi Life Insurance Company Limited (SBILIFE) (1.68%)
Financials:
Net Profit: ₹551 crore, up 71% YoY.
Net Premium Income: ₹24,828 crore, up 11% YoY.
First-Year Premium: ₹6,451 crore, up 13.6% YoY.
Renewal Premium: ₹14,468 crore, up 14% YoY.
Single Premium: ₹4,079 crore, slightly up from ₹4,062 crore in Q3FY24.
Key Highlights:
Renewal premiums increased by 14% YoY, with strong sequential growth.
Single premium remained steady at ₹4,079 crore.
Outlook:
Robust renewal premiums and stable growth in new business premiums indicate positive momentum for the coming quarters.
Havells India Limited (HAVELLS) (1.02%)
Financials:
Revenue: ₹4,882.50 crore, up 11% YoY.
Net Profit: ₹282.81 crore, down 1.8% YoY.
EPS: ₹4.51, down from ₹4.59 in Q3FY24.
EBITDA: ₹415.11 crore, up 6% YoY.
EBITDA Margin: 8.5%.
Key Highlights:
Declared an interim dividend of ₹4 per equity share.
Segment-wise revenue growth across all major sectors, with Cables and Electrical Consumer Durables showing strong performance.
Lloyd Consumer showed a loss, but other segments remained profitable.
Outlook:
Full-year performance expected to continue steady growth.
Tech Mahindra (TECHM) (1.62%)
Financials:
Net Profit: ₹988.8 crore up 93% YoY.
Revenue: ₹13,285.6 crore up 1.4% YoY.
EBITDA: ₹1,809 crore up 57.8% YoY.
EBITDA Margin: 13.6%, up 480bps YoY.
EPS: ₹11.10 (Basic), up from ₹5.77 YoY.
Key Highlights:
21% sequential drop in profit due to increased operational costs.
Despite flat revenue, EBIT margin improved, reflecting cost control measures.
Outlook:
Plans to continue emphasizing operational efficiency and focus on key markets to achieve long-term growth goals.
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Srini Pallia, CEO and Managing Director, Wipro Ltd.
“In a seasonally weak quarter, our strong in-quarter execution helped us deliver above the top end of our revenue guidance. We also achieved our highest margins in the past three years while continuing to invest in our people. We closed 17 large deals with a total value of $1B. We are advancing steadily and investing decisively to lead our clients in an AI-driven future.”
Aparna Iyer, Chief Financial Officer, Wipro Ltd.
“We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5%. Our EPS grew 24.4% YoY and operating cash flow was at 146.5% of net income. We are pleased to share that the board has approved our revised capital allocation policy that increases the committed payout percentage to 70% or above in a block of 3 years. In addition, board has also declared an interim dividend of INR 6 per share.” - Link
Dinesh Taluja, CFO & Corporate Development, Reliance Retail
On the retail business, we had a very strong performance with Rs 90,000 crores of revenue during the quarter. So, milestone quarter for us, where our revenues crossed ten billion dollars in a quarter. The growth was 18.4% on a quarter, quarter basis, and 9% on a Y-o-Y basis. Part of the growth came from the festive season and the wedding season, but also a lot of the streamlining and productivity improvements that we've been focusing on over the last few quarters that is coming to fruition, and we are seeing a strong impact of that.
Our grocery business B2C business grew at 37% Y-o-Y. So, while there's a lot of talk about quick commerce growing, we see our business growing very strongly, with very healthy LFLs growing, as well as our Online Express deliveries business is also scaling up pretty well. We are on a much higher scale compared to any other offline and online player. So, for us, the business continues to perform very well. - Link
Calendars
In the coming days, we have the following major events, corporate actions, and upcoming earnings releases:
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I have been reading for a week now, and the reports are excellent!
Good