Indices pare gains; European mrkt advance

The key equity indices pared all their gains and traded in negative territory in afternoon trade. The Nifty slipped below the 23,200 level after hitting the day's high of 23,347.30 in the early afternoon trade. Pharma, media and auto shares declined while FMCG and IT stocks advanced.

At 13:25 IST, the barometer index, the S&P BSE Sensex, shed 45.42 points or 0.07% to 76,474.96. The Nifty 50 index fell 20.60 points or 0.09% to 23,184.75.

In the broader market, the S&P BSE Mid-Cap index declined 1.06% and the S&P BSE Small-Cap index fell 1.43%.

The market breadth was weak. On the BSE, 1,188 shares rose and 2,629 shares fell. A total of 136 shares were unchanged.

Economy:

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.

Pranjul Bhandari, Chief India Economist at HSBC, said: Indias manufacturing sector started the year strong, with output and new orders bouncing back from a relatively weak third fiscal quarter. The rise in new export orders was especially noticeable, and the easing of input cost inflation is also good news for manufacturers. The cooling in growth in new domestic business in the services sector, however, highlights a potentially emerging weak spot in the economy. New export business for service providers, on the other hand, looks set to maintain its growing momentum.

Gainers & Losers:

Eicher Motors (up 2%), Tata Conusmer Products (up 1.80%), Hindustan Unilever (up 1.65%), Power Grid Corporation of India (up 1.56%) and Grasim Industries (up 1.54%) were the major Nifty gainers.

Dr Reddy Laboratories (down 4.91%), Trent (down 2.53%), Apollo Hospital Enterprise (down 1.90%), Mahindra & Mahindra (down 1.78%) and Cipla (down 1.68%) were the major Nifty losers.

Dr Reddys Laboratories dropped 4.91%. The company reported 2.4% increase in consolidated net profit to Rs 1,413.70 crore in Q3 FY25 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.

The media reports highlighting concerns over the declining revenue contribution from Revlimid, which has also pressured margins. Revlimid, a blockbuster cancer drug and a significant growth driver for Dr. Reddy's in recent years, is nearing its patent expiry in January 2026, raising fears of a potential revenue decline post-expiry.

A foreign brokerage noted that while the launch of the anti-diabetic drug Semaglutide in Canada in early 2026 could offer some relief to Dr. Reddy's, it is unlikely to fully compensate for the revenue loss from Revlimid. While Dr. Reddy's management has identified other growth drivers, the brokerage believes that Semaglutide will primarily fuel growth in the short term, with other long-term factors expected to contribute later.

Stocks in Spotlight:

Amber Enterprises India added 3.55% after the company reported consolidated net profit of Rs 35.87 crore in Q3 FY25, compared with net loss of Rs 0.48 crore posted in Q3 FY24. Revenue from operations jumped 64.8% year on year (YoY) to Rs 2,133.33 crore in the quarter ended 31 December 2024.

United Spirits fell 1.14%. The spirits maker's standalone net profit jumped 36.31% to Rs 473 crore in Q3 FY25 as against Rs 347 crore posted in Q3 FY24. Revenue from operations (excluding excise duty) stood at Rs 3,432 crore in Q3 FY25, up 14.82% YoY, mainly driven by resilient consumer demand in peak festive season and a fast scale-up in Andhra Pradesh.

Capri Global Capital (CGCL) rallied 12.01% after the NBFC's consolidated net profit surged 88.41% to Rs 128.08 crore on 35.63% increase in total income to Rs 821.83 crore in Q3 FY25 over Q3 FY24.

Mankind Pharma fell 3.77% after the companys consolidated net profit declined 16.2% to Rs 380.23 crore in Q3 FY25 as against Rs 453.76 crore posted in Q3 FY24. However, revenue from operations increased 23.9% year on year (YoY) to Rs 3,230 crore in the third quarter of FY25.

V2 Retail hit the upper circuit of 5% after the companys consolidated net profit surged 117.2% to Rs 51.19 crore in Q3 FY25 compared with Rs 23.57 crore in Q3 FY24. Revenue from operations jumped 58.1% to Rs 590.94 crore in Q3 FY25 compared with Rs 373.76 crore in corresponding quarter last year.

Sona BLW Precision Forgings declined 3.11%. The company reported a 13.93% increase in consolidated net profit to Rs 151.19 crore on 11.02% rise in revenue from operations to Rs 867.91 crore in Q3 FY25 over Q3 FY24.

Thyrocare Technologies dropped 1.03%. The healthcare service provider reported 28.56% increase in consolidated net profit to Rs 18.95 crore on 23.14% rise in revenue from operations to Rs 165.92 crore in Q3 FY25 over Q3 FY24.

Global Markets:

European market advanced as US President Donald Trump called for lower interest rates and cheaper oil prices, additionally investors are also likely to be looking ahead to the Feds FOMC meeting on Wednesday with no change expected to interest rates.

Asian market traded mixed on Friday as 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 BoJs expected interest rate hike. Core CPI, excluding volatile fresh food prices, rose 3% year-on-year, as widely expected. Headline CPI hit 3.6% y-o-ya two-year highup 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 Decembers 49.6, marking the seventh consecutive month of contraction. Any reading below 50 signals a shrinking sector.

Chinese equities climbed after U.S. President Donald Trump suggested he would prefer not to impose further tariffs on China during a media interview, easing trade war tensions.

In the U.S., the S&P 500 closed at a record 6,118.72 points on Thursday, up 0.5%. The Dow Jones Industrial Average gained 0.9% to 44,565.26, while the NASDAQ Composite edged up 0.2%. Investors responded positively to robust corporate earnings and Trumps address at Davos, where he urged for immediate global interest rate cuts.

GE Aerospace shares soared 6.6% after posting better-than-expected Q4 sales and profits. Union Pacific Corporation saw a 5.2% jump in stock price, fueled by strong operational metrics and lower fuel costs. On the flip side, Electronic Arts Inc. tumbled 16.7% after slashing its net bookings guidance, citing weak performance in several games, particularly its soccer franchise. American Airlines Group slid 8.7% as it projected a larger-than-expected Q1 loss due to rising costs, despite exceeding Q4 earnings forecasts.

President Trump, speaking remotely at the World Economic Conference in Davos, Switzerland, addressed global economic issues including interest rates, U.S.-China trade, and energy policies. On monetary policy, he urged for immediate interest rate cuts worldwide, emphasizing their importance for economic growth.

Powered by Capital Market - Live News