The Indian stock market closed on a negative note today, with benchmark indices reflecting subdued investor sentiment. The NIFTY 50 slipped by 113.15 points (-0.49%) to settle at 23,092.20, while the SENSEX dropped 329.92 points (-0.43%) to close at 76,190.46.
Banking and small-cap stocks took a significant hit, with the NIFTY BANK declining by 221.20 points (-0.46%) and the BSE SMALLCAP index plunging by 1,142.78 points (-2.23%). On the brighter side, the NIFTY IT index managed to gain 0.40%, buoyed by strong performances in the IT sector.
The Indian stock market is under pressure, with weak sentiment triggering selloffs even on in-line earnings results. While large-cap stocks showed resilience, small-cap stocks faced significant losses. The Q3FY25 earnings season met tepid expectations, but uninspiring management commentary weighed on sentiment. FPI flows remain volatile, with India witnessing outflows of $6,111 million in January 2025. Concerns over moderating corporate earnings overshadowed positive factors like lower oil prices and anticipated US rate cuts. IT and FMCG sectors were the only bright spots, while Pharma and Media sectors suffered due to heavyweight losses and weak results. Notably, Cyient Ltd dropped sharply after disappointing Q3 earnings, the CEO’s resignation, and downgraded FY25 forecasts. For long-term investors, this remains a time for patience and accumulation strategies.
Overview of Contents
Top Gainers
| Company | Current Price (₹) | % Gain |
|---|---|---|
| HUL | 2,368.10 | 2.00 |
| Britannia | 5,101.55 | 1.77 |
| Eicher Motors | 5,206.30 | 1.76 |
| Grasim Industries | 2,490.75 | 1.20 |
| TATA Cons. Prod | 992.35 | 0.86 |
Top Losers
| Company | Current Price (₹) | % Loss |
|---|---|---|
| Dr. Reddy's Labs | 1,224.40 | -5.04 |
| Trent | 5,490.45 | -4.24 |
| M&M | 2,801.40 | -2.95 |
| Adani Enterprises | 2,315.10 | -2.93 |
| BPCL | 263.80 | -2.75 |
Institutional Activity (FII/DII)
| Category | Date | Buy Value (₹ Crores) | Sell Value (₹ Crores) | Net Value (₹ Crores) |
|---|---|---|---|---|
| DII | 24-Jan-2025 | 12,835.41 | 10,433.10 | 2,402.31 |
| FII/FPI | 24-Jan-2025 | 11,230.47 | 13,988.96 | -2,758.49 |
Key Takeaways:
- Top Gainers: HUL led the gainers with a 2% rise, followed by Britannia and Eicher Motors.
- Top Losers: Dr. Reddy’s Labs suffered a steep decline of 5.04%, topping the losers list.
- Institutional Flows: DIIs showed strong buying activity, while FIIs were net sellers, pulling out ₹2,758.49 crores
Technical Analysis Nifty 50
Nifty had a volatile trading session, slipping 113 points to close negative after facing selling pressure near 23350–23400. For the past four sessions, it has been trading in a range of 23000–23400, with momentum indicators and contracting Bollinger Bands signaling further consolidation. Unless Nifty breaches the 23000–23050 support zone, rangebound action is likely to persist. Broader market weakness was evident as small-cap and mid-cap indices fell 2.35% and 1.55%, respectively. A breach below 23000 could lead to a decline towards 22670, aligning with the 38.2% Fibonacci retracement of the 16828–26277 rally.
Q3 Results Released Today
Shriram Finance
Shriram Finance reported a Q3 net profit of ₹3,570 crore, nearly doubling due to a one-time gain from the sale of its stake in Shriram Housing Finance for ₹3,929 crore, contributing ₹1,489 crore post-tax. Excluding the gain, PAT grew 14.4% YoY to ₹2,080 crore.
Net interest income rose 14.3% to ₹5,823 crore, while AUM increased 18.8% YoY to ₹2.54 lakh crore as of December 31, 2024. The company declared an interim dividend of ₹2.5 per share, payable by February 22, 2025. It approved a resource mobilization plan for NCDs and implemented a stock split, reducing the share face value to ₹2. Shares fell 1.6% post-results.
Jindal Saw Ltd
Jindal Saw reported a 5% YoY decline in Q3 net profit to ₹506 crore, with revenue down 7% to ₹5,271 crore. EBITDA fell 5% to ₹940 crore, while margins improved slightly to 18% from 17.5% YoY.
Shree Digvijay Cement
Shree Digvijay Cement reported a net loss of ₹4.8 crore in Q3, compared to a net profit of ₹31.4 crore YoY, as revenue declined 2.4% to ₹186.8 crore from ₹191.2 crore YoY.
Granules India
Granules India reported a decline in its financial performance for the third quarter. The company’s net profit dropped by 6.4%, amounting to Rs 117.6 crore compared to Rs 125.6 crore in the same period last year. Additionally, its revenue decreased by 1.5%, falling to Rs 1,137.6 crore from Rs 1,156 crore in Q3 of the previous year.
The company also saw an 8% decrease in its EBITDA, which stood at Rs 230.2 crore, down from Rs 250.4 crore in the same quarter last year. As a result, the company’s margin decreased to 20.2% compared to 22% in the previous year, reflecting a decline in profitability.
Tejas Networks
Tejas Networks shares fell sharply by 9.32% on January 24, hitting an intraday low of Rs 994.45, after reporting weak Q3 results. Despite returning to profitability with a net profit of Rs 165.67 crore compared to a loss of Rs 44.87 crore last year, the company saw a 40% decline in profit sequentially.
Its order book shrank to Rs 2,681 crore, significantly lower than the average of Rs 7,700 crore over the past five quarters. The company also reported a sharp increase in inventory levels, rising to Rs 2,683 crore from Rs 494 crore a year ago, though revenue grew 346% YoY to Rs 2,497.30 crore.
Shriram Finance
Shriram Finance is expected to report an 18% year-on-year growth in loans for Q3FY25, with a 4% sequential increase. The company’s Core Net Interest Margin (NIM) is anticipated to remain stable at 10.7%, and core profit before tax (PBT) is projected to rise by 13% YoY.
Analysts predict a 20% YoY and 5% QoQ growth in Net Interest Income (NII) for the NBFC sector, including Shriram Finance. Asset quality is expected to improve, with stable credit costs. The company is set to announce its Q3 results later today.