Indices trade with major losses; metal shares slip for 2nd day

The key equity barometers continued to extend losses in the mid-afternoon trade, impacted by worries over disappointing corporate earnings, uncertainty around U.S. trade policy, and persistent foreign outflows. The Nifty traded below the 22,850 mark. Metal stocks tumbled for the second consecutive session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, tumbled 813.57 points or 1.07% to 75,375.83. The Nifty 50 index declined 258.15 points or 1.12% to 22,833.25.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.70% and the S&P BSE Small-Cap index slipped 3.80%.

The market breadth was weak. On the BSE, 507 shares rose and 3,550 shares fell. A total of 135 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 9.31% to 18.31.

Economy:

Indias forex reserves dropped by $1.88 billion to $623.983 billion in the week ended January 17, the RBI said on Friday.

The forex reserves had increased to an all-time high of $704.885 billion in end-September.

For the week ended January 17, foreign currency assets, a major component of the reserves, decreased by $2.878 billion to $533.133 billion, the data released on Friday showed.

Gold reserves increased by $1.063 million to $68.947 billion during the week. The special drawing rights (SDRs) were up by $01 million to $17.782 billion, the RBI said.

Indias reserve position with the IMF was down by $74 million at $4.122 billion in the reporting week, the data showed.

Buzzing Index:

The Nifty Metal index slipped 2.34% to 8,241. The index tumbled 3.22% in two consecutive trading sessions.

Welspun Corp (down 8.19%), Hindustan Copper (down 3.61%), Steel Authority of India (down 3.36%), Jindal Steel & Power (down 2.96%), Hindustan Zinc (down 2.84%), Hindalco Industries (down 2.78%), Vedanta (down 2.75%), APL Apollo Tubes (down 2.54%), NMDC (down 2.2%) and Jindal Stainless (down 2.07%) declined.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.01% to 6.788 as compared with the previous close of 6.720.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.3900, compared with its close of 86.2200 during the previous trading session.

MCX Gold futures for the 5 February 2025 settlement were shed 0.25% to Rs 79,828.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 107.49.

The United States 10-year bond yield fell 1.69% to 4.546.

In the commodities market, Brent crude for March 2025 settlement declined 5 cents or 0.05% to $78.45 a barrel.

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