Sensex Tanks 788 Points, Nifty Below 23,200; Banking and Metals Lead Declines

The Indian stock market opened on a subdued note today, dragged down by a sharp sell-off in banking and metal stocks. The bearish trend pulled all sectors into the red, erasing the optimism from the previous session’s strong close. Data from the exchanges revealed a massive erosion of Rs 4.5 lakh crore in market capitalization during the session.

At 10:25 AM, the Sensex had plunged 788.54 points or 1.02%, settling at 76,284.90. The Nifty was down 191.45 points or 0.82%, trading at 23,153.30. Market breadth remained negative, with 1,384 stocks advancing, 1,830 declining, and 135 remaining unchanged.

Global Cues and Market Sentiment

U.S. stock futures climbed amid global optimism as Donald Trump took the oath for his second term as U.S. President. Investors expect immediate policy actions to bolster the banking and energy sectors, fueling hopes for economic revival. However, sentiment across Asian markets turned cautious after Trump announced plans to impose 25% tariffs on Mexico and Canada by February 1, which reversed earlier optimism about a delay in tariff decisions.

In the currency and bond markets, the U.S. dollar and 10-year bond yields dipped slightly. Analysts suggest that delays in tariff hikes could benefit emerging markets, including India, though sustained foreign institutional inflows depend on improvements in India’s GDP growth and corporate earnings.

Sectoral Trends

All sectors traded in the red, with PSU banks and metal stocks leading the decline, each losing over 1%. Realty stocks also fell sharply, with DLF, Oberoi Realty, and Phoenix Mills dragging the Nifty Realty index lower. Other sectors such as energy, infrastructure, and IT slipped up to 1%, while pharma and auto stocks erased morning gains to trade 0.5-0.8% lower.

Stock-Specific Action

Food delivery giant Zomato tumbled nearly 9% after reporting a 57% YoY drop in Q3 profit at Rs 59 crore. Despite a 64% rise in revenue to Rs 5,404 crore, the results disappointed investors. Similarly, Dixon Technologies saw its shares plummet 8% after Jefferies issued an ‘underperform’ rating, despite the company reporting a more than twofold increase in net profit to Rs 216 crore for Q3 FY25.

Paytm also declined 4% after narrowing its Q3 net loss to Rs 208 crore, compared to Rs 220 crore in the year-ago period. This comes after the company had turned profitable in the previous quarter, driven by an exceptional gain from selling its ticketing business to Zomato.

Market Outlook and Expert Insights

According to Hardik Matalia, Derivative Analyst at Choice Broking, “Nifty may find support at 23,250, followed by 23,100 and 23,000. Resistance levels are pegged at 23,400, 23,500, and 23,700.” For Bank Nifty, he added, “Support is seen at 49,200, followed by 48,800 and 48,500, while resistance levels stand at 49,700, 50,000, and 50,300.”

Broader Market Performance

The broader markets mirrored the weak sentiment, with mid-cap and small-cap indices losing 1% each. Ajit Mishra of Religare Broking highlighted that stretched valuations in mid and small-cap stocks could lead to further corrections. He advised investors to adopt a stock-specific approach, focusing on strong fundamentals rather than expecting a broad-based recovery.

Top Gainers and Losers

Gainers: Apollo Hospitals, Tata Motors, Tata Consumer Products, BPCL, and UltraTech Cement.
Losers: Adani Enterprises, Kotak Mahindra Bank, Reliance Industries, Trent, and Adani Ports.

Disclaimer

The investment opinions expressed on news.betulhub.in are those of the analysts and do not necessarily reflect the views of the website. Readers are advised to consult certified experts before making any investment decisions.