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Informist, Wednesday, Jan. 22, 2025

By Akash Mandal

MUMBAI – Benchmark indices recovered from Tuesday's sharp fall to close higher Wednesday after shares of index heavyweight HDFC Bank rose on the back of its positive December quarter earnings. Gains in the stock, which resulted in some other private bank stocks rising, powered the indices to recover after they slipped into the red earlier in the session. 

The benchmark indices notched fresh intraday highs only after the bank announced its earnings. The Nifty 50 ended at 23155.35 points, up 130.70 points, or 0.6% from Tuesday. The index closed more than 174 points higher than its low for the session. The BSE Sensex closed at 76404.99 points, up 566.63 points or 0.8%.

However, the sentiment was weak in the broader market as the Nifty small- and mid-cap indices ended 1.3-1.6% lower. The sell-off in broader market indices could be a mix of profit-booking, concerns around valuations, underwhelming corporate earnings, and strong outflows by foreign investors, Kshitija Salvi, technical research analyst at IDBI Capital & Securities, said.

Indices had opened higher, tracking overnight gains in the US market, but fell steadily until the recovery in the afternoon. Shares of HDFC Bank were in the red for most of the session, but ended higher by 1.4% after the bank reported a net profit for the December quarter of INR 167.36 billion, against INR 166.47 billion expected by analysts.

Volatility remained high, analysts said. The India VIX, which indicates volatility in the market, fell 1.7% to end at 16.77, but still up 6.5% for the week.

Many sectoral indices recovered to end higher after being in the red, with the Nifty Financial Services index leading the recovery. Information technology stocks were up throughout the session and led the gains in the Nifty 50. Shares of Wipro, Infosys, Tata Consultancy Services, and Tech Mahindra were up 2.7-3.6%, and were the top gainers in the Nifty 50.

Healthcare and pharmaceutical stocks also rose mid-day, with Sun Pharmaceutical Industries and Cipla ending 2.1% and 0.8% higher, respectively. Meanwhile, real estate stocks saw heavy losses for the second consecutive day and the Nifty Realty index ended 4.6% lower. The index has declined almost 8.5% in the past two sessions. All constituents in the index closed in the red, with shares of Macrotech Developers, Godrej Properties, Prestige Estates, and Oberoi Realty declining over 5%.

Meanwhile, the Nifty Auto fell again, its fourth straight session of declines. The index has ended lower in 12 of the past 14 sessions, declining more than 7% during that period. Shares of Tata Motors, Samvardhana Motherson, and TVS Motor Co. ended down 2.2%, 2.4%, and 0.8%, respectively. 

Among others, shares of Polycab India fell more than 6% despite the company reporting a consolidated net profit of INR 4.58 billion for the December quarter, the second highest in seven years. Shares of ICICI Prudential Life Insurance Co. declined 5.9% despite its net profit for the December quarter rising 43% on year to INR 3.26 billion, beating estimates.

Shares of Kaynes Technology India plunged 10.5%. The company's board Wednesday approved raising up to INR 16 billion through issuance of instruments or securities, or a qualified institutional placement. Shares of Akums Drugs and Pharmaceuticals ended 7% lower after the income tax department conducted searches at offices and manufacturing units of the company and its subsidiaries. Shares of IndiaMART InterMESH closed down 6.6% after analysts said the company's growth is expected to be weaker in the near future due to slower collections growth and a fall in subscriber additions for the December quarter. Shares of Netweb Technologies India fell 9.3%. Shares of Bharat Electronics declined 3.1% and were the worst hit in the Nifty 50.

Bombay Burmah Trading Corp. surged 12.6% and was the top gainer in the Nifty 500. Shares of Bajaj Holding & Investments and Elgi Equipments, up 4.5% and 5.6%, respectively, were also among the top gainers in the index. 

* Of the Nifty 50 stocks, 27 rose and 23 fell

* Of the Sensex stocks, 20 rose and 10 fell

* On the NSE, 780 stocks rose, 2,052 fell, and 62 were unchanged

* On the BSE, 1,142 stocks rose, 2,802 fell, and 115 were unchanged

* Nifty IT: up 2.1%; Nifty Pharma: up 0.7%; Nifty Realty: down 4.6%

BSE                                                 NSE

76404.99 points, up 566.63 points or 0.8%        23155.35 points, up 130.70 points, or 0.6%

End

Edited by Ashish Shirke

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