The Indian stock market witnessed significant selling pressure on January 21, 2025, as major indices closed deep in the red. The Nifty 50 declined by 320.10 points (-1.37%) to close at 23,024.65, while the Sensex fell sharply by 1,235.08 points (-1.60%), settling at 75,838.36. Banking and IT stocks led the downward trend, with the Nifty Bank dropping by 779.90 points (-1.58%) to end at 48,570.90. The broader market indices were not spared either, as the BSE SmallCap plummeted by 1,024.39 points (-1.94%), indicating widespread negative sentiment across sectors.
Index Performance
| Index | Closing Value | Change | % Change |
|---|---|---|---|
| NIFTY 50 | 23,024.65 | -320.10 | -1.37% |
| SENSEX | 75,838.36 | -1,235.08 | -1.60% |
| NIFTY BANK | 48,570.90 | -779.90 | -1.58% |
| NIFTY IT | 41,697.95 | -494.85 | -1.17% |
| BSE SmallCap | 51,714.62 | -1,024.39 | -1.94% |
Top Gainers
| Company | Current Price | % Gain |
|---|---|---|
| Apollo Hospital | 6,919.15 | 2.04% |
| TATA Cons. Prod | 972.10 | 1.23% |
| BPCL | 280.20 | 1.05% |
| JSW Steel | 926.85 | 0.83% |
| Shriram Finance | 520.30 | 0.70% |
Top Losers
| Company | Current Price | % Loss |
|---|---|---|
| Trent | 5,736.95 | -5.80% |
| Adani Ports | 1,106.20 | -3.70% |
| NTPC | 324.30 | -3.50% |
| ICICI Bank | 1,196.15 | -2.98% |
| SBI | 759.05 | -2.59% |
FIIs and DIIs Data
| Category | Buy Value (₹ Crores) | Sell Value (₹ Crores) | Net Value (₹ Crores) |
|---|---|---|---|
| DII | 14,355.52 | 10,855.20 | 3,500.32 |
| FII/FPI | 9,983.18 | 15,903.46 | -5,920.28 |
Sectoral and Broader Market Highlights
All sectors closed in negative territory, with Realty, Energy, PSU Banks, Financial Services, and Auto witnessing the steepest declines. The Nifty Midcap 100 index fell by 2.31%, and the Nifty SmallCap 100 index dropped by 2.28%.
According to market analysts, the Nifty 50 is forming a bearish engulfing pattern on the daily chart, signaling possible continued downward pressure. Key support levels are pegged at 23,000, with a potential downside to the 22,800–22,500 range. Immediate resistance is at 23,300, followed by 23,500. Traders are advised to exercise caution and avoid overnight long positions unless the index sustains above the critical resistance zone.
Commentary on Capital Markets
During the day, Sebi’s Executive Director, Manoj Kumar, emphasized the need for synergy between merchant bankers and mutual funds to facilitate high-quality capital raising. He highlighted the mutual fund industry’s impressive growth trajectory, with assets under management (AUM) soaring to ₹70 lakh crore in 2024 from ₹11 lakh crore a decade ago. Kumar underscored the importance of SIPs, which have doubled their monthly inflow to ₹28,000 crore.
Mahavir Lunawat, Chairman of AIBI, predicted over 1,000 IPOs in the next two years, adding 20% to India’s market capitalization. He stressed the importance of quality IPOs to sustain investor confidence.
Conclusion
The sharp sell-off across major indices signals heightened caution among investors amid global uncertainties. With FIIs continuing to offload equities and key support levels under threat, market participants should remain vigilant and adopt risk management strategies. The focus now shifts to whether indices can reclaim critical resistance zones or if the bearish momentum will persist.