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Informist, Monday, Jan. 20, 2025

By Akash Mandal

MUMBAI – Benchmark indices closed higher Monday, bouncing back from the losses posted Friday. The gains in indices were led by banks and financial services stocks. The benchmarks had dipped into the red early in the session, but then rose quickly and then maintained the gains. A slight rise in afternoon trade was followed by a plateau after the gains were given up. 

The market was past the oversold zone and might see further gains during the week, analysts said. However, a lot will also depend on how investors perceive policies in the US by President Donald Trump. Trump will assume office later Monday. The Nifty 50 ended at 23344.75 points, up 141.55 points or 0.6%. The BSE Sensex ended at 77073.44 points, up 454.11 points or 0.6%. Broader market indices rose throughout the session and outperformed the benchmarks. The Nifty small- and mid-cap indices ended 0.8-1.2% higher. Most small-cap indices outperformed their mid-cap counterparts.  

Volatility was high Monday, suggesting that investors were cautious ahead of Trump taking charge, Ajit Mishra, senior vice president of technical research at Religare Broking, said. The India VIX, which indicates the volatility in the market, rose 4.2% to end at 16.4. Going forward, the market will be driven mainly by corporate earnings, Mishra said. 

Shares of Kotak Mahindra Bank soared 9% and hit a four-month high early in the session. The bank's net profit grew 10% in the December quarter to INR 33.05 billion but was slightly lower than the INR 33.44 billion estimated by analysts. Analysts attributed the surge in the stock price to the company reporting higher loan and deposit growth for the quarter as compared to that of the overall industry. Nuvama Institutional Equities upgraded the stock to 'buy' from 'reduce' earlier and raised its target price by 26% to INR 2,040. 

Shares of Wipro also ended 6.5% higher on the back of improved margins during the December quarter. Margins rose to the highest level in three years, analysts said. The company reported a consolidated net profit of INR 33.54 billion for the December quarter, beating estimates by a wide margin.

Other heavyweight banking stocks also rose, with shares of HDFC Bank and ICICI Bank ending 0.9% and 0.6% higher, respectively. Bajaj Finance, Bajaj Finserv, and State Bank of India rose 2.0-3.6%. The Nifty Private Bank index gained 2.4%. Meanwhile, shares of Tata Consultancy Services, Trent, and ITC ended down 0.6-2.0%, limiting the gains in the Nifty 50.

Barring two, all sectoral indices of the Nifty ended in the green. The Nifty FMCG and Nifty Auto were the only sectoral indices to decline, closing 0.1% and 0.5% lower, respectively. Nifty FMCG has declined in six of the past seven sessions, falling 3%. Nifty Auto has also declined in 10 of the past 12 sessions, and is down more than 5%. Shares of Mahindra & Mahindra and Maruti Suzuki ended down 1% each. 

Among other stocks, shares of Zomato fell sharply after its earnings for the December quarter missed estimates by a wide margin. The stock, which was up in the early session, fell 8% during the last half hour of the session after the company reported a sharply lower-than-expected consolidated net profit of INR 590 million. The stock ended down 3.6%. Shares of Supreme Industries also fell 4.3% after its consolidated net profit was down on year and missed estimates. Shares of Swan Energy and BLS International Services fell 6.7% and 6.4%, respectively, and were the worst hit on the Nifty 500. 

Meanwhile, shares of Tata Teleservices (Maharashtra) jumped more than 16% and was the top gainer. It was among many telecom stocks that rose after television channel ET Now reported that the government is considering a proposal to waive 50% interest and 100% penalties and interest on penalties which make up the bulk of adjusted gross revenue dues that were levied on telecom companies after a 2019 Supreme Court order. Shares of Vodafone Idea ended 9.1% higher. 

Shares of Bajaj Finance rose 3.6%. Analysts were positive about the company's high cross-selling potential and its asset under management growth. Shares of Kalyan Jewellers rose 5.9% after Motilal Oswal Financial Services denied allegations about its fund managers taking bribes for investments in the jeweller's stock. Shares of CreditAccess Grameen jumped 9.7%. 

* Of the Nifty 50 stocks, 29 rose and 21 fell

* Of the Sensex stocks, 18 rose and 12 fell

* On the NSE, 1,809 stocks rose, 1,053 fell, and 87 were unchanged

* On the BSE, 2,503 stocks rose, 1,557 fell, and 168 were unchanged

* Nifty Private Bank: up 2.4%; Nifty PSU Bank: up 2%; Nifty Auto: down 0.5%

BSE                                                 NSE

77073.44 points, up 454.11 points or 0.6%           23344.75 points, up 141.55 points or 0.6%

End

Edited by Saji George Titus

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