The key equity indices ended with moderate losses during the week, driven by concerns over potential disruptions in global trade due to U.S. policies under President Donald Trump. Weaker domestic economic growth, compounded by sustained selling from foreign portfolio investors (FPIs), further pressured the markets. Despite this, broader markets managed to outperform the frontline indices. The barometer experienced a decline for two days, followed by gains in the remaining three.
In the week ended on Friday, 24 January 2025, the S&P BSE Sensex slipped 428.87 points or 0.56% to settle at 76,190.46. The Nifty 50 index declined 111 points, or 0.48% to settle at 24,004.75. The BSE Mid-Cap index dropped 2.38% to close at 42,715.63. The BSE Small-Cap index tumbled 4.21% to end at 50,107.51.
Weekly Index Movement:
The domestic equity benchmarks ended with substantial gains on Monday. The S&P BSE Sensex, rallied 454.11 points or 0.59% to 77,073.44. The Nifty 50 index added 141.55 points or 0.61% to 23,344.75.
The headline equity benchmarks ended with major losses on Tuesday. The S&P BSE Sensex, tumbled 1,235.08 points or 1.60% to 75,838.36. The Nifty 50 index dropped 320.10 points or 1.37% to 23,024.65.
The domestic equity benchmarks ended a volatile session with significant gains on Wednesday. The SS&P BSE Sensex, rose 566.63 points or 0.75% to 76,404.99. The Nifty 50 index added 130.70 points or 0.57% to 23,155.35.
The headline equity benchmarks ended with moderate gains on Thursday. The S&P BSE Sensex rose 115.39 points or 0.15% to 76,520.38. The Nifty 50 index added 50 points or 0.22% to 23,205.35.
The key equity indices ended a volatile session with substantial losses on Friday. The S&P BSE Sensex, declined 329.92 points or 0.43% to 76,190.46. The Nifty 50 index lost 113.15 points or 0.49% to 23,092.20.
Economy:
India's foreign exchange reserves declined by $8.714 billion to $625.871 billion for the week ended January 10, as per the latest RBI data. Foreign currency assets fell by $9.469 billion to $536.011 billion, while gold reserves increased by $792 million to $67.883 billion. Special drawing rights (SDRs) decreased by $33 million to $17.781 billion, and the reserve position with the IMF was down by $4 million to $4.195 billion.
The HSBC Flash India Composite Output Index, which measures the month-on-month change in the combined output of India's manufacturing and service sectors, fell from a final reading of 59.2 in December to 57.9 in January. This indicated the weakest rate of expansion in 14 months. However, the headline figure remained well above its long-term average of 54.7.
While the slowdown at the composite level, driven by the service sector, was evident, there was a pickup in growth among goods producers. The HSBC Flash India Manufacturing PMI, a snapshot of factory business conditions based on new orders, output, employment, supplier delivery times, and stocks of purchases, rose from 56.4 in December to 58.0 in January, reflecting the best improvement in the sector's health since July 2024.
Stocks in Spotlight:
HDFC Bank advanced 0.78%. The bank reported a 2.21% increase in standalone net profit to Rs 16,735.50 crore in Q3 FY25 as against Rs 16,372.54 crore posted in Q3 FY24. Total income rose 7.02% YoY to Rs 87,460.44 crore in the quarter ended 31 December 2024.
Hindustan Unilever (HUL) added 0.62%. The company reported a 19.13% jump in standalone net profit to Rs 3,001 crore in Q3 FY25 as compared with Rs 2,519 crore in the corresponding quarter last year. Revenue from operations rose 1.79% to Rs 15,195 crore in Q3 FY25 as compared with Rs 14,928 crore in Q3 FY24.
Meanwhile, in consideration of the demerger of the ice cream business, the company will issue one equity share of the demerged company for every equity share held in the existing company, i.e., in a 1:1 ratio.
Further, the company’s board has approved the acquisition of the palm undertaking of Vishwatej Oil Industries. The plan includes setting up sapling nurseries, palm fresh fruit bunch collection centers, and a state-of-the-art palm oil mill in the state. HUL will also launch a farmer outreach program to provide technical assistance and introduce best farming practices. This initiative aligns with the company’s global sustainable and regenerative agriculture principles.
SBI Life Insurance Company declined 6.92%. The company reported a 71.19% increase in net profit to Rs 550.82 crore despite a 52.21% fall in total income to Rs 18,542.16 crore in Q3 FY25 over Q3 FY24.
Wipro soared 13.55%. 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 of the same year. The company’s board has declared an interim dividend of Rs 6 per equity share.
Tech Mahindra added 4.02%. 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.
Bharat Petroleum Corporation (BPCL) declined 3.59%. The company reported a 36.85% jump in standalone net profit to Rs 4,649.20 crore in Q3 FY25 as against Rs 3,397.27 crore posted in Q3 FY24. Net sales (excluding excise duty) declined 2.02% year on year (YoY) to Rs 1,13,135.8 crore in the December 2024 quarter.
Zomato tanked 13.24%. The company reported a 57.25% decline in consolidated net profit to Rs 59 crore in Q3 FY25 as compared with Rs 138 crore in Q3 FY24. Revenue from operations jumped 64.39% YoY to Rs 5,405 crore during the quarter.
Dr Reddy’s Laboratories tumbled 6.50%. The company reported a 2.4% increase in consolidated net profit to Rs 1,413.70 crore in Q3 FY25 as compared with Rs 1,380.90 crore in Q3 FY24. Net sales jumped 15.9% to Rs 8,358.60 crore in Q3 FY25 as compared with Rs 7,214.80 crore in Q3 FY24.
Kotak Mahindra Bank surged 7.32%. The private lender's net profit jumped 9.97% to Rs 3,304.80 crore on a 13.86% rise in total income to Rs 16,050.38 crore in Q3 FY25 over Q3 FY24.
UltraTech Cement jumped 6.62%. The cement major’s consolidated net profit rallied 79.19% to Rs 1,469.51 crore in Q3 FY25 as against Rs 820.04 crore posted in Q2 FY25. Revenue from operations increased 9.96% to Rs 17,193.33 crore in the December 2024 quarter as against Rs 15,634.73 crore reported in the preceding quarter of the same year.
Global Markets:
South Korea's economy grew by 0.1% quarter-on-quarter in the final three months of 2024, according to preliminary data from the central bank. On a year-on-year basis, GDP growth slowed to 1.2% from 1.5%, reflecting challenges in the broader economic environment.
Japan posted a surprising trade surplus of 130.9 billion yen ($840 million) in December, beating expectations for a deficit of 55 billion yen. This marked a significant turnaround from November's 110.3 billion yen deficit, supported by strong exports, according to government data released Thursday. The Bank of Japan is holding its next policy meeting today and tomorrow, where BOJ governor Kazuo Ueda has signaled intentions to hike rates.
The Bank of Japan raised its key short-term interest rate to around 0.5%, the highest in 17 years, in an effort to further "normalize" its monetary policy as inflation remains within target levels.
Inflation in Japan stayed on track in December, supporting the case for the BoJ’s expected interest rate hike. Core CPI, excluding volatile fresh food prices, rose 3% year-on-year, as widely expected. Headline CPI hit 3.6% year-over-year—a two-year high—up from 2.9% in November.
On the downside, Japanese manufacturing activity contracted further in January. The au Jibun Bank Manufacturing PMI dropped to 48.8 from December’s 49.6, marking the seventh consecutive month of contraction. Any reading below 50 signals a shrinking sector.
Singapore's core CPI, a key indicator that excludes private road transport and accommodation costs, rose by 1.8% in December compared to the same month last year. This marks a slight decrease from the 1.9% growth recorded in November.
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