Post Session: Quick Review

Indian equity benchmarks extended their losses for third straight session and settled with cut of around 0.30% each on Wednesday amid intensifying tensions between the U.S. and European allies over Greenland. After a cautious start, the indices soon slipped into deep red as traders remained cautious following disappointing quarterly earnings and ongoing foreign fund outflows. In the afternoon session, the markets staged a recovery, but failed to close in the green.

Some of the important factors in trade:

FIIs selling pressure persists: Market participants remained worried over sustained fund outflows by foreign investors. Foreign institutional investors (FIIs) net sold equities worth nearly Rs 3,000 crore on Tuesday. 

India’s eight key infrastructure sectors grow 3.7% in December: Downside remained capped as the government data showed that India’s eight key infrastructure sectors registered a four-month high growth rate of 3.7 per cent in December last year, driven by a jump in the output of fertiliser and cement.

India among Russia's top foreign trade partners: Traders took note of Russian Prime Minister Mikhail Mishustin’s statement that India was among Russia's top foreign trade partners as Moscow redirected its energy flows to friendly countries.    

Global front: European markets were trading in red as concerns about a potential trade war continued to weigh on sentiments. Asian equity markets ended mixed, as risk aversion gripped financial markets on the back of rising bond yields and U.S. President Donald Trump's renewed push to acquire Greenland. 

The BSE Sensex ended at 81909.63, down by 270.84 points or 0.33% after trading in a range of 81124.45 and 82407.05. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.01%, while Small cap index down by 0.80%. (Provisional)

The few gaining sectoral indices on the BSE were Metal up by 0.52%, Energy up by 0.28%, Oil & Gas up by 0.20% and Basic Materials up by 0.04%, while Consumer Durables down by 1.24%, Bankex down by 0.94%, Capital Goods down by 0.92%, Industrials down by 0.91%, and FMCG down by 0.70% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Eternal up by 4.98%, Ultratech Cement up by 1.30%, Interglobe Aviation up by 1.06%, Reliance Industries up by 0.75% and Adani Ports and Special Economic Zone up by 0.70%. On the flip side, ICICI Bank down by 2.01%, Trent down by 1.78%, Bharat Electronics down by 1.59%, Axis Bank down by 1.22% and Larsen & Toubro down by 1.13% were the top losers. (Provisional)

Meanwhile, as India is pushing a quality-first approach to manufacturing, the additional secretary in the Consumer Affairs Ministry Bharat Khera has said that the government is set to extend quality certification fee concessions by three years beyond the current mid-2026 deadline to support small and medium enterprises (SMEs). Further, Bureau of Indian Standards (BIS) has moved a proposal for the extension, which provides 80% fee reduction for micro units, 50% for small enterprises and 20% for medium-sized firms.

Moreover, Khera has stressed on shifting from compliance-driven to culture-driven quality standards to transform India’s Viksit Bharat manufacturing vision into reality. He noted that the quality is not a compliance cost but an enabler for market access. 

Besides, he pointed that while the BIS has published over 23,000 standards with about 95% aligned with international benchmarks, the implementation challenges persist particularly for small and medium enterprises that account for 80% of BIS licensees.

The CNX Nifty ended at 25157.50, down by 75.00 points or 0.30% after trading in a range of 24919.80 and 25300.95. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eternal up by 5.16%, Ultratech Cement up by 1.43%, Interglobe Aviation up by 1.41%, JSW Steel up by 1.26% and Hindalco up by 1.20%. On the flip side, ICICI Bank down by 1.95%, Trent down by 1.87%, Tata Consumer Products down by 1.81%, Bharat Electronics down by 1.64% and Apollo Hospital down by 1.24% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 95.82 points or 0.39% to 24,607.30, France’s CAC fell 14.58 points or 0.18% to 8,048.00 and UK’s FTSE 100 decreased 13.08 points or 0.13% to 10,113.70.

Asian markets settled mixed on Wednesday tracking Wall Street’s fall overnight as risk aversion gripped financial markets on the back of rising bond yields and US President Donald Trump's renewed threats of tariffs against European nations over the proposed purchase of Greenland. Japanese shares fell after Finance Minister Satsuki Katayama called for calm among market participants following a rout that pushed yields to all-time highs. Chinese shares gained marginally due to hopes that China will increase policy support this year following pledges to roll out additional fiscal and monetary stimulus. Seoul shares rose after data showed South Korean exports rose 14.9% year over year in the first 20 days of January, led by a 70% jump in semiconductor shipments.