Indian Stock Market Exercises Caution Amid Varied Q3 Earnings
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Synopsis
On January 23, the Indian stock market displayed caution as benchmark indices faced volatility amid mixed Q3 earnings reports, particularly influenced by declines in oil, gas, and banking sectors. HDFC Bank showed slight gains despite brokerage downgrades, while market analysts predict resistance and support levels for the Nifty 50.
Key Takeaways
- Indian benchmark indices tread cautiously amid mixed Q3 earnings.
- Significant selloff in oil and gas and banking stocks.
- HDFC Bank shows slight gains post robust Q3 results.
- Market analysts predict resistance levels for Nifty 50.
- FIIs continue to be net sellers, raising concerns.
Mumbai, Jan 23 (NationPress) The Indian benchmark indices proceeded with caution on Thursday as they navigated through mixed Q3 earnings reports, with a continued selloff in oil and gas as well as banking stocks. In the early session, the Nifty index dipped by 0.28 percent to 23,090, while the 30-stock Sensex decreased by 0.27 percent to 76,202. Gains were, however, noted on both exchanges shortly after.
Out of the 12 sectors on the NSE, 10 saw declines, with the Nifty FMCG and Nifty Oil and Gas suffering the most. Conversely, Nifty IT and Media sectors made gains in early trading.
Among the 20 sectors compiled by BSE, six witnessed an uptick, with IT and Focused IT sectors showing the most significant increases.
HDFC Bank experienced a slight rise in its stock price to Rs 1,671.95 following robust Q3 results. However, significant pressure from ICICI Bank, Hindustan Unilever, Larsen & Toubro, and State Bank of India contributed to the Nifty 50's decline.
Brokerage firms have reduced their earnings forecasts for HDFC Bank due to a slowdown in loan growth but remain optimistic about the lender after its impressive quarterly performance in a challenging macroeconomic landscape.
Market analysts suggest that the NSE Nifty 50 is poised to test critical levels, with immediate resistance at 23,300. A breakout above this level could propel the index toward 23,600–23,800.
On the downside, 23,000 is identified as immediate support, and a breach below this level could drag the index down to 22,800.
The domestic markets faced a highly volatile session on Wednesday. Selling pressure from elevated levels brought the Nifty index close to the previous day's low. However, buying activity from lower levels in the latter session aided market recovery, leading to a close around 23,150.
Global markets edged positively, yet foreign institutional investors (FIIs) remained net sellers, raising concerns about the sustainability of the upward trend.
Asian-Pacific stocks traded mixed, following a Wall Street rally fueled by optimism surrounding mega artificial intelligence (AI) initiatives by US President Donald Trump.
FIIs extended their selling streak to the 14th consecutive day, offloading equities worth Rs 4,026 crore on January 22. Conversely, domestic institutional investors (DIIs) purchased equities worth Rs 3,500 crore on the same day.
