Markets remain under pressure in late morning deals

Domestic equity markets remained under pressure with both Sensex and Nifty falling over 590 and 160 points respectively in late morning deals, weighed down by the performance of index heavyweights Infosys and Axis Bank following their Q3 results. Infosys fell by more than 5.50% despite reporting a 12% YoY increase in its consolidated net profit. Axis Bank also declined by over 5.50% after the bank missed its quarterly profit expectations, citing slower loan growth and higher provisions for bad loans. Meanwhile, broader indices were also trading in red with BSE Mid cap index and Small cap index falling in range of 0.35-0.40%. Traders were cautious as FIIs continued their selling spree, offloading shares worth Rs 4,341.95 crore on January 16. Further, weakness also prevailed in the markets as industry body Ficci lowered India's growth projection for the current financial year to 6.4 per cent from 7 per cent estimated earlier.

On the global front, Asian markets were trading mostly in green after China’s fourth-quarter GDP beat estimates. China's gross domestic product expanded 5.4 percent on year in the fourth quarter of 2024, exceeding expectations for 5.0 percent and up from 4.6 percent in Q3. Back home, on the BSE sectoral front, traders were seen pilling up positions in Energy, Metal, Capital Goods, Oil & Gas and FMCG, while selling was witnessed in IT, Bankex, TECK, Auto and Healthcare. 

The BSE Sensex is currently trading at 76451.75, down by 591.07 points or 0.77% after trading in a range of 76263.29 and 77069.19. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.35%, while Small cap index down by 0.39%.

The top gaining sectoral indices on the BSE were Energy up by 1.14%, Metal up by 1.03%, Capital Goods up by 0.78%, Oil & Gas up by 0.74% and FMCG up by 0.56%, while IT down by 2.34%, Bankex down by 2.03%, TECK down by 2.01%, Auto down by 0.56% and Healthcare down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.79%, Zomato up by 1.43%, ITC up by 1.37%, Nestle up by 1.36% and Asian Paints up by 1.35%. On the flip side, Infosys down by 5.56%, Axis Bank down by 5.52%, Kotak Mahindra Bank down by 2.45%, Mahindra & Mahindra down by 2.42% and ICICI Bank down by 2.02% were the top losers.

Meanwhile, ratings agency ICRA in its latest report has revised its forecast of road execution by the Ministry of Road Transport and Highways (MoRTH) in FY2025 to 10,000-10,500 km from its earlier estimate of 12,500-13,000 km. The same is on account of the General Elections in Q1 FY2025 and prolonged monsoon in certain geographies, which affected productive days, resulting in a decline in execution during that period, which is already reflecting in execution done till 8M FY2025. 

The report stated that spending by the Road Ministry also stood lower at 55% of the FY2025 Budget Allocation (BA) in 8M FY2025 against 66% of BA of the previous fiscal. As per ICRA’s estimates, road awards are likely to be in the range of 8,500-9,000 km in FY2025, similar to the last year’s awarding of 8,581 km. In 8M FY2025, road awards stood at around 2,250 km, compared to 2,816 km awarded in 8M FY2024 amid continued uncertainty on the mode of project awarding and the impact of General Elections in H1 FY2025. 

It further said project awarding gained momentum from November 2024 following better clarity from MORTH in Q2 FY2025. The Ministry awarded 773 km in November 2024 compared to 221 km in November 2023 and the average monthly award of 316 km in 8M FY2025. 

The CNX Nifty is currently trading at 23151.60, down by 160.20 points or 0.69% after trading in a range of 23100.35 and 23292.10. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.13%, Hindalco up by 2.11%, Coal India up by 1.99%, BPCL up by 1.85% and ITC up by 1.44%. On the flip side, Infosys down by 5.70%, Axis Bank down by 5.51%, Kotak Mahindra Bank down by 2.57%, Mahindra & Mahindra down by 2.35% and Shriram Finance down by 2.11% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 55.48 points or 0.28% to 19,578.37, Jakarta Composite gained 31.58 points or 0.44% to 7,139.10, Shanghai Composite strengthened 13.79 points or 0.43% to 3,249.82, Straits Times rose 8.2 points or 0.22% to 3,809.33. However, Taiwan Weighted added 94.09 points or 0.41% to 23,119.19, KOSPI dropped 4.82 points or 0.19% to 2,522.67 and Nikkei 225 slipped 174.54 points or 0.45% to 38,398.06.