Indian Equity Benchmarks Slip on Realty Losses; Sensex Down 286 Points

Market Update at 12:31 PM: Indian equity benchmarks were trading lower in the last session of the week, weighed down by losses in broader markets and declines in realty stocks.

At 12 PM, the BSE Sensex was trading at Rs 82,020, down 286 points or 0.35 per cent. Similarly, the NSE Nifty50 was trading lower by 80 points or 0.31 per cent at 25,210.

Among Sensex constituents, Eternal, IndiGo, Power Grid, Maruti Suzuki India, and Axis Bank were the top drags, falling by up to 3.65 per cent. In contrast, Asian Paints, Hindustan Unilever, TCS, Tech Mahindra, and UltraTech Cement led the gains, rising by up to 2 per cent.

Broader markets also reflected weakness, with the Nifty Midcap 100 and Nifty Smallcap 100 indices trading lower by 0.37 per cent and 0.48 per cent, respectively.

Sectoral indices showed a mixed trend. Nifty Media, Pharma, FMCG, and Consumer Durables advanced by up to 0.90 per cent. On the other hand, Realty, PSU Bank, Private Bank, Auto, and Media indices declined, with losses extending up to 1.42 per cent.

Market Update at 9:53 AM: Indian equity benchmarks opened marginally higher on Friday, taking positive cues from Asian markets as geopolitical jitters over Greenland eased. However, persistent foreign outflows and mixed corporate earnings kept overall sentiment cautious.

At 9:15 a.m. IST, the Nifty 50 rose 0.22 per cent to 25,344.6, while the BSE Sensex added 0.03 per cent to 82,335.94. Gains were broad-based, with all 16 major sectors trading in the green. Among broader indices, Small-Caps climbed 0.5 per cent and Mid-Caps advanced 0.4 per cent.

On Thursday, both benchmarks gained around 0.5 per cent, snapping a three-session losing streak, after U.S. President Donald Trump walked back threats to impose tariffs on European countries and ruled out the use of force to seize Greenland.

Despite Friday’s uptick, the benchmarks remain down nearly 1.5 per cent for the week. Tepid earnings from heavyweight firms such as Reliance Industries, ICICI Bank, coupled with sustained foreign selling, continue to weigh on market sentiment.

Pre-Market Update at 7:57 AM: The Indian stock market benchmark indices are set for a positive start on Friday, supported by a broad rally across global markets as geopolitical worries eased. Asian markets traded higher and the U.S. stock market closed with gains after President Donald Trump reversed Greenland tariff threats on European allies. Gift Nifty trends also indicated a stronger opening for domestic equities.

On Thursday, domestic indices snapped their three-session losing streak as easing geopolitical tensions boosted sentiment. The Sensex rose 397.74 points, or 0.49 per cent, to close at 82,307.37, while the Nifty 50 added 132.40 points, or 0.53 per cent, to settle at 25,289.90. 

Asian markets traded higher on Friday as investors reacted to easing geopolitical tensions and awaited the Bank of Japan’s monetary policy outcome. Japan’s Nikkei 225 gained 0.25 per cent, the Topix rose 0.27 per cent, South Korea’s Kospi increased 1.11 per cent and the Kosdaq advanced 0.74 per cent. Hong Kong’s Hang Seng futures also signalled a positive opening.

In the derivatives market, Gift Nifty traded near 25,380 levels, reflecting a premium of nearly 30 points over the previous close of Nifty futures, indicating a positive start for domestic benchmark indices.

Overnight, U.S. markets ended higher after President Trump withdrew tariff plans involving Greenland that targeted European allies. The Dow Jones Industrial Average gained 306.78 points, or 0.63 per cent, to 49,384.01, the S&P 500 rose 37.73 points, or 0.55 per cent, to 6,913.35, while the Nasdaq Composite added 211.20 points, or 0.91 per cent, to close at 23,436.02. Among major U.S. stocks, Meta gained 5.7 per cent, Tesla rose 4.2 per cent, Nvidia advanced 0.85 per cent and Microsoft added 1.52 per cent. Procter & Gamble rose 2.6 per cent, while Abbott Laboratories plunged 10 per cent and GE Aerospace fell 7.4 per cent.

In macroeconomic developments, the U.S. economy grew faster than initially estimated in the third quarter. GDP expanded at an annualised pace of 4.4 per cent, revised up from 4.3 per cent, marking the strongest growth since the third quarter of 2023. The economy had grown at 3.8 per cent in the second quarter. Meanwhile, the U.S. Federal Reserve’s preferred inflation measure, the PCE price index, stood at 2.8 per cent year-on-year in November, compared with 2.7 per cent in October, while month-on-month pricing held steady at 0.2 per cent.

The U.S. labour market showed continued resilience as initial jobless claims rose slightly by 1,000 to 200,000 for the week ended January 17, lower than expectations of 210,000. In Asia, Japan’s core consumer inflation slowed but remained above the Bank of Japan’s 2 per cent target. Core CPI, excluding fresh food, increased 2.4 per cent year-on-year in December, compared with 3.0 per cent in November.

Commodity markets saw sharp moves as gold prices surged to fresh record highs above USD 4,960 per ounce, with the metal on track for a weekly gain of more than 7 per cent. Gold was recently trading 0.5 per cent higher at USD 4,959.39 per ounce, while silver climbed 0.7 per cent to USD 96.91 per ounce, also marking a record.

Currency markets reflected weakness in the U.S. dollar. The dollar index stood at 98.329 after declining 0.58 per cent in the previous session and was poised for a weekly slide of around 1 per cent, the steepest in a year. 

In energy markets, crude oil prices retreated about 2 per cent to a one-week low. Brent crude settled 1.8 per cent lower at USD 64.06 per barrel, while U.S. WTI dropped 2.1 per cent to USD 59.36 per barrel.

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Disclaimer: The article is for informational purposes only and not investment advice.