Indian Equity Market Declines as Q3 Earnings Season Commences
Click to start listening
Mumbai, Jan 9 (NationPress) The primary benchmark indices in India concluded on a lower note on Thursday as the Q3 FY25 earnings reporting season commenced, exhibiting a sell-off particularly in the IT, PSU bank, financial services, pharmaceutical, and automobile sectors.
The Sensex settled at 77,620.21, decreasing by 528.28 points, or 0.68 percent, while the Nifty closed at 23,526.50, down 162.45 points or 0.69 percent.
The Nifty Bank index finished at 49,503.5, down 331.55 points, or 0.67 percent. The Nifty Midcap 100 index ended at 55,745.90, a drop of 524.70 points, or 0.93 percent, while the Nifty Smallcap 100 index closed at 18,118.35, decreasing by 247.30 points, or 1.35 percent.
Market analysts noted that the Indian stock market reflected the downward trend seen in Asian counterparts, influenced by cautious investor sentiment following a sell-off in US bonds.
“Domestically, the FMCG sector showed resilience, whereas most other sectors faced declines, with only modest enhancements anticipated in Q3 earnings projections, advising against overly optimistic expectations,” they remarked.
On the Bombay Stock Exchange (BSE), 1,210 shares finished in the green, while 2,750 shares declined, with 107 shares remaining unchanged.
In terms of sector performance, the FMCG and Consumption segments emerged as the primary gainers.
Within the Sensex constituents, top losers included Zomato, Tata Steel, NTPC, L&T, Tata Motors, HDFC Bank, TCS, SBI, Tech Mahindra, Axis Bank, UltraTech Cement, Bajaj Finance, Infosys, Maruti Suzuki, Reliance, Sun Pharma, Bajaj Finserv, and Power Grid.
Conversely, Nestle India, Hindustan Unilever Limited, M&M, Kotak Mahindra Bank, Asian Paints, Bharti Airtel, and ITC were the top gainers.
On January 8, foreign institutional investors sold equities amounting to Rs 3,362.18 crore, while domestic institutional investors acquired equities worth Rs 2,716.28 crore.
The Nifty index closed marginally above its crucial support level at 23,500, forming a bearish candlestick beneath the 200-day EMA, indicating a need for caution.
“A subsequent breach below 23,500 would confirm a sell-on-rise strategy, with further declines anticipated. Conversely, maintaining this support level may lead to a consolidation phase. For the near term, 23,500 serves as a critical support level, while resistance is situated at 23,800, limiting any upward movement,” stated Vatsal Bhuva of LKP Securities.
