End-Session

The domestic equity benchmarks witnessed a sharp decline on Tuesday, with the Nifty closing below the 24,050 mark. Investor sentiment was dampened by concerns over the potential consequences of a second Trump term, particularly regarding US-China trade tensions, the direction of US Federal Reserve interest rate cuts, and global economic growth. Continued selling by FIIs further exacerbated the downward pressure.

The 50-unit benchmark index touched a high of 23,426.30 early in the day but succumbed to selling pressure, ending the session in negative territory. The trading was volatile due to the expiry of weekly F&O contracts on the Sensex. All sectoral indices on the NSE ended in the red, with realty, consumer durables, and PSU banks experiencing the most significant declines.

Investor sentiment was eroded by uncertainty surrounding US trade policy. Trump's pronouncements regarding potential tariffs on neighboring countries have heightened concerns among global investors. The possibility of a 25% tariff on imports from Mexico and Canada, has raised fears of inflationary pressures, an overheated US economy, and a strengthening dollar, all of which could negatively impact bond markets.

The S&P BSE Sensex slumped 1,235.08 points or 1.60% to 75,838.36. The Nifty 50 index dropped 320.10 points or 1.37% to 23,024.65.

Trent (down 5.80%), ICICI Bank (down 2.98%), Reliance Industries (down 2.46%) and Bajaj Finance (down 2.03%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2% and the S&P BSE Small-Cap index declined 1.94%.

The market breadth was weak. On the BSE, 1,187 shares rose and 2,788 shares fell. A total of 113 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.89% to 17.06.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.26% to 6.848 as compared with previous close 6.874.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.5875, compared with its close of 86.4500 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement rose 0.52% to Rs 78,950.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.56% to 108.69.

The United States 10-year bond yield fell 0.80% to 4.574.

In the commodities market, Brent crude for March 2025 settlement declined $1.64, or 2.03% to $79.15 a barrel.

Global Markets:

The US Dow Jones index futures were currently up by 112 points, signaling a strong opening for US stocks today.

Most European stocks declined as investors digested the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday. Further, investors will be keeping an eye on the World Economic Forum this week.

Most Asian shares ended higher as market attention turned to upcoming central bank meetings in Asia later this week. Malaysia's central bank is expected to maintain its policy rate at 3% on Wednesday, while the Bank of Japan will hold its next policy meeting from January 23 to 24, with Governor Kazuo Ueda signaling potential interest rate hikes.

President Donald Trump held off on imposing sweeping trade tariffs on his first day in office. Trump resumed his duties in the White House on Monday, a day after his inauguration and during the Martin Luther King, Jr. Day holiday, when U.S. stock market was closed.

Sworn in as the 45th President of the United States on January 20, Trump emphasized his vision of America First in his inaugural address, focusing on economic revitalization, national security, and prioritizing domestic interests over globalization.

Trump began his term with a series of executive orders aimed at fulfilling his campaign promises. These included measures to tighten immigration controls, lay the groundwork for a U.S.-Mexico border wall, boost fossil fuel production, and scale back environmental regulations.

While he declared plans to address global trade practices, Trump opted not to impose new tariffs on the U.S.'s largest trading partners, signaling a more deliberate approach to trade relations. Instead, he directed his administration to combat unfair trade globally.

Investors closely monitored these early actions, given Trump's promises to rapidly implement his agenda.

Stocks in Spotlight:

Zomato shares plunged 10.92% to Rs 214.65 after a global brokerage firm on Monday reaffirmed its 'underperform' rating on Zomato, at a target price of Rs 130 per share. This downgrade comes on the heels of the food delivery giant's disappointing Q3 results, which revealed slowing growth in its core business and mounting losses in its quick-commerce unit, Blinkit, raising concerns about near-term profitability.

Reflecting this weakness, shares of another food delivery firm, Swiggy, also declined sharply, falling 8.08% to Rs 440.30.

Dixon Technologies (India) tumbled 13.79% after the company's consolidated net profit declined 47.48% to Rs 216.23 crore on 9.37% fall in revenue from operations to Rs 10,453.68 crore in Q3 FY25 over Q2 FY25.

L&T Finance added 1%. The company reported 2.15% declined in consolidated net profit to Rs 626.40 crore in Q3 FY25 as compared with Rs 640.18 crore in Q3 FY24. However, total income jumped 14.6% YoY to Rs 4,105.13 crore in Q3 FY25.

Multi Commodity Exchange of India (MCX) dropped 8.53%. The company reported a consolidated net profit of Rs 160.04 crore in Q3 FY25 as against net loss of Rs 5.35 crore posted in Q3 FY24. Revenue from operations jumped 57.35% year on year (YoY) to Rs 301.38 crore in the quarter ended 31 December 2024.

Jammu & Kashmir Bank slipped 3.78%. The bank reported 26.23% jump in net profit to Rs 531.51 crore on 12.57% increase in total income to Rs 3,448.40 crore in Q3 FY25 over Q3 FY24.

Aditya Birla Real Estate declined 2.77% after the firm reported consolidated net loss (continuing operations) of Rs 36.95 crore in Q3 FY25 as compared with net profit of Rs 102.51 crore in Q3 FY24. Total income decreased 28.36% year on year (YoY) to Rs 961.32 crore in the third quarter of FY25.

Indoco Remedies added 1.83%. The pharma company reported standalone net loss of Rs 10.23 crore in Q3 FY25 as against net profit of Rs 20.01 crore posted in Q3 FY24. Revenue from operations stood at Rs 364.91 crore in the third quarter of FY25, down 18.61% as against Rs 448.38 crore posted in Q3 FY24.

Raghav Productivity Enhancers rose 1.75% after the company's consolidated net profit surged 64.3% to Rs 9.81 crore in Q3 FY25 as against Rs 5.97 crore posted in Q3 FY24. Revenue from operations climbed 73.6% YoY to Rs 55.04 crore in the quarter ended 31 December 2024.

Artson Engineering slipped 3.55%. The company reported standalone net profit of Rs 6.37 crore in Q3 FY25, zoomed 1200% as against Rs 0.49 crore posted in Q3 FY25. However, revenue from operations declined 43% to Rs 17.80 crore in the December 2024 quarter as against Rs 31.23 crore reported in the preceding quarter same year.

International Travel House (ITHL) dropped 9% after the company's standalone net profit tumbled 27.49% to Rs 5.38 crore in Q3 FY25 as against Rs 7.42 crore posted in Q3 FY24. Revenue from operations slipped 4.36% year on year (YoY) to Rs 58.27 crore in the quarter ended 31 December 2024.

Oberoi Realty fell 7.23%. The real estate developers consolidated net profit surged 71.70% to Rs 618.38 crore in Q3 FY25 as against Rs 360.15 crore posted in Q3 FY24. Revenue from operations climbed 33.92% to Rs 1,411.08 crore in Q3 FY25 as compared to Rs 1,053.64 crore recorded in the corresponding quarter last year.

AGI Greenpac slipped 2.76%. The company reported 34.86% jump in net profit to Rs 90.52 crore on 5.75% rise in revenue from operations to Rs 658.48 crore in Q3 FY25 over Q3 FY24.

DEE Development Engineers rallied 3.96% after the firm commissioned 2nd phase of its manufacturing plant in Anjar, Gujarat, enhancing the capacity by 9,000 MT per annum.

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