More Stories

Informist, Wednesday, Feb. 5, 2025

By Akash Mandal

MUMBAI – Benchmark indices ended lower Wednesday in a choppy session where the Nifty 50 swung between gains and losses, while the BSE Sensex was mostly lower. Indices fell slightly in late trading amid caution ahead of the monetary policy decision by the Reserve Bank of India due Friday and uncertainty over US policies. There are concerns that the latest trade policies and tariffs could cause inflation in the US to rise, potentially further slowing down the pace of interest rate cuts by the US Federal Reserve.  

The Nifty 50 ended at 23696.30 points, down 42.95 points or 0.2%, and the BSE Sensex closed at 78271.28 points, down 312.53 points or 0.4%. Broader market indices, however, gained sharply with small-cap indices being the biggest gainers. The Nifty Smallcap and Nifty Midcap indices were up 0.5-2.0%. 

Fast-moving consumer goods and select retail stocks dragged down the Nifty 50 by around 0.1% each, with Titan, Nestle India, Hindustan Unilever, Britannia Industries, and Tata Consumer Products falling 2-3%. The Nifty FMCG ended in the red for the third straight session and declined more than 1.5%. The index has fallen more than 3% in that period. 

FMCG and other consumer stocks had sharply gained Saturday after Finance Minister Nirmala Sitharaman had announced an income tax exemption on income up to INR 1.2 million in the Union Budget. Contrary to the widespread belief, the income tax relief announced in the Budget may not lead to major growth in volumes for FMCG companies, an analyst at a domestic brokerage said.

The tax relief will largely help the middle class, who are already buying FMCG products, but the extra income may push them to buy more consumer durables and automobiles. "You and I are anyway buying things like soap, toothpaste, or chips, so more savings will not lead to more consumption...the middle class will look to rather buy an air conditioner or a scooter," the analyst said.

Real estate stocks also fell sharply with the Nifty Realty closing almost 2% lower. Godrej Properties fell almost 4% after its consolidated net profit of INR 1.63 billion for the December quarter missed analysts' expectations. Sobha Ltd. and The Phoenix Mills also declined around 5% each.  

Oil and Gas stocks were major gainers in the session, with Oil India, Indraprastha Gas, and Aegis Logistics closing 5-7% higher. Oil and Natural Gas Corp. ended up 3% after Macquarie upgraded its rating on the stock to 'outperform' with a target price of INR 310. Metal companies also rose with the Nifty Metal gaining 1.5%. Hindustan Zinc, Hindalco Industries, and Hindustan Copper ended 2-7% higher. 

Most of the sectoral indices gained in the session with only the Nifty Realty, Nifty FMCG, Nifty Consumer Durables, and Nifty Auto sectors declining. India VIX, which indicates volatility in the domestic market, rose 0.5% to 14.08 after ending Tuesday at a near one-month low of 14.02. 

Among specific stocks, Asian Paints fell over 3% after the company's consolidated net profit and revenue for the December quarter both fell on year. Some brokerages also cut the target price for the stock and estimates for earnings per share, citing a tepid outlook for the medium term and expensive valuation of the stock. Titan Co. also fell 3% and Thermax fell 5.5% after their net profit and revenue for the quarter missed the Street's view. On the other hand, Biocon and JSW Energy gained over 5%. Eris Lifesciences, Global Health, and Jubilant Pharmova all rose over 10% and were the top gainers in the Nifty 500. 

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

* Of the Sensex stocks, 10 rose and 20 fell

* On the NSE, 1,969 stocks rose, 857 fell, and 87 were unchanged

* On the BSE, 2,548 stocks rose, 1,417 fell, and 141 were unchanged

* Nifty Media: up 1.8%; Nifty Metal: up 1.5%; Nifty Realty: down 1.9%

BSE                                                      NSE

Sensex: 78271.28 points, down 312.53 points or 0.4%      23696.30 points, down 42.95 points or 0.2%

End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com