Indian equity benchmarks ended lower on Friday, snapping a three-day winning streak, as heavyweight information technology stocks and banks dragged the indices down following mixed quarterly earnings. The BSE Sensex fell 423.49 points or 0.55 per cent to close at 76,619.33, while the NSE Nifty 50 declined 108.60 points or 0.47 per cent to end at 23,203.20.
Market capitalisation of BSE-listed companies rose to ₹42,980,829.60 crore on January 16, 2025, showing an increase of ₹407,092.76 crore from the previous day’s value of ₹42,573,736.84 crore, indicating overall positive investor wealth creation despite the day’s decline in benchmark indices.
IT majors led the decline, with Infosys dropping 5.75 per cent, followed by Wipro falling 2.20 per cent. Banking stocks also witnessed selling pressure, with Axis Bank declining 4.43 per cent, Kotak Mahindra Bank dropping 2.58 per cent, and Shriram Finance falling 3.71 per cent.
However, some energy and consumer stocks provided support to the market. BPCL emerged as the top gainer, rising 2.68 per cent, followed by Reliance Industries advancing 2.65 per cent. Coal India gained 2.52 per cent, while Hindalco and Nestle India added 2.22 per cent and 2.20 per cent respectively.
“Declines in the banking and IT sectors negatively impacted large caps. A cautious outlook on discretionary spending led to a decline in IT stocks while private banking stocks declined due to expectations of subdued deposit and credit growth, as well as tighter liquidity conditions,” said Vinod Nair, Head of Research at Geojit Financial Services.
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The broader markets showed resilience, with the Nifty Next 50 gaining 0.76 per cent to close at 65,053.60 and Nifty Midcap Select rising 0.26 per cent to end at 12,249.85. However, banking sector indices underperformed, with Nifty Bank falling 1.50 per cent to 48,540.60 and Nifty Financial Services declining 1.46 per cent to 22,608.20.
Market breadth remained positive with 2,056 stocks advancing and 1,886 declining on the BSE. Ninety-five stocks hit their 52-week highs, while 61 touched their 52-week lows. Fourteen stocks hit the upper circuit, and two reached the lower circuit.
Foreign portfolio investors (FPIs) were net sellers in the capital market segment, offloading equities worth ₹4,341.95 crore on January 16, 2025. Domestic institutional investors (DIIs) remained net buyers, investing ₹2,928.72 crore during the same period. Among other categories, proprietary traders were net buyers with a net inflow of ₹51.79 crore, while clients and non-resident Indians (NRIs) showed net outflows of ₹164.03 crore and ₹7.56 crore, respectively.
“The ongoing tussle between bulls and bears reflects mixed market sentiment, with select heavyweights supporting recovery hopes on a rotational basis. However, persistent FII selling and a mixed start to the earnings season are restricting upward momentum,” noted Ajit Mishra, SVP, Research at Religare Broking Ltd.
Railway stocks gained attention amid expectations of a 15-20 per cent increase in CAPEX for Indian Railways in the upcoming budget, potentially rising from ₹2.65 lakh crore in FY25 to over ₹3 lakh crore in FY26.
The Indian rupee continued to depreciate, falling 0.6 per cent over the past week against the US dollar, while crude oil prices rose 5 per cent during the same period, adding to market concerns.
“Markets remained under pressure throughout the trading session as rising US bond yields continues to create uncertainty amongst local investors. With FII fund outflows from domestic equities remaining strong, geo-political uncertainty and concerns over slow pace in US rate cuts going ahead will keep investors on the edge,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.