The Sensex concluded at 76,624, down 0.54% from the previous close, while the Nifty 50 finished the session down 0.47% at 23,203. While the Nifty Smallcap 100 index ended the day up 0.16%, closing at 17,672, the Nifty Midcap 100 index increased 0.23% to 54,607 as well.
Stock market crash: A strong sell-off in banking and IT counters led to heavy selling pressure on Indian equities during Friday's trading session, January 17. As a result, the frontline indices ended the session down, ending their three-day winning run.Heavyweights like Reliance Industries and ITC, as well as a few metal and pharmaceutical firms that supported the markets, could have prevented the sell-off from being as severe.
In light of this, the Sensex closed at 76,624, down 0.54% from the previous close, and the Nifty 50 finished the session down 0.47% at 23,203. However, for the fourth straight trading day, the overall market managed to finish the session in the green and continued to outperform the front-line indices.
While the Nifty Smallcap 100 index ended the day up 0.16%, closing at 17,672, the Nifty Midcap 100 index increased 0.23% to 54,607 as well.
While Infosys's earnings sent down the whole IT pack, Axis Bank's poor set of figures sent key banking equities into negative territory. While Infosys' Q3FY25 results were consistent with analysts' projections, questions were raised regarding the caliber of earnings.
While the Nifty Smallcap 100 index ended the day up 0.16%, closing at 17,672, the Nifty Midcap 100 index increased 0.23% to 54,607 as well.
While Infosys's earnings sent down the whole IT pack, Axis Bank's poor set of figures sent key banking equities into negative territory. While Infosys' Q3FY25 results were consistent with analysts' projections, questions were raised regarding the caliber of earnings.
A larger percentage of "third-party items" in the transaction pipeline drove revenue growth, according to Morgan Stanley, which sparked questions about the caliber of the outcomes.
The biggest losers in today's trading were Infosys and Axis Bank, with the former dropping 6% and the latter dropping 4.5%. The session ended with 21 Nifty 50 members losing money overall.
Reliance Industries' shares ended up on the winner's list over 3% higher, followed by those of BPCL, Hindalco, Coal India, Nestle India, and Bharat Electronics, all of which saw gains of between 2% and 2.5%. Additionally, Asian Paints ended the day up 2.1%, ending a five-day losing run.
Nifty IT was the biggest loser in terms of sectoral performance, down 2.68%, followed by Nifty Private Bank, which fell 2.17%. On the other hand, Nifty Oil & Gas was the best-performing stock, rising 1.6%. Nifty Realty, Nifty Infra, Nifty Energy, Nifty Metal, and Nifty FMCG all ended the day with gains of more than 1%.
Experts pointed to the following primary causes of today's market decline in addition to the poor revenues of large corporations.
Key causes of the market decline today
Stock market analysts claim that the economic uncertainty surrounding the US economy ahead of Donald Trump's second term is the reason why the Indian stock market is declining. Some of the main factors holding Dalal Street back include the selling of FIIs, the increase in the yield on US bonds, and investors' cautious attitude in the wake of Q3 earnings.
1] Economic uncertainty: "A second Trump administration, especially with its trade and protectionism policies, could drastically alter Asia's economic landscape." As the US prioritizes American interests through trade agreements and tariffs, nations that rely largely on US commerce, such as China, Japan, South Korea, and Vietnam, may suffer difficulties. As businesses diversify their supply chains, Southeast Asia—particularly Indonesia, Malaysia, and Thailand—may gain from more foreign investment as a result of Trump's "decoupling" from China, according to Ross Maxwell, Global Strategy Operations Lead at VT Markets.
2] Cautionary approach during Q3 results season: "Even though the market is anticipating strong Q3 numbers from the Indian banking sector, investors are growing cautious following the poor Infosys results and selling pressure in the banking space," stated Anshul Jain, Head of Research at Lakshmishree Investment and Securities.
3] Rising US dollar, bond yield: "The US bond yield is rising as the US dollar stays strong." Money has been moving from stocks and other assets to the US currency and bond markets as a result of this. According to Anshul Jain, this is another factor contributing to the Indian equity market's weakness.
4] FIIs' selling: "FIIs are consistently selling in the Indian markets because of the alluring opportunities in the US bond and currency market. However, because they are awaiting the Union Budget 2025, DIIs are not stepping forward. The Indian stock market's ongoing decline can also be attributed to this, according to Mahesh M. Ojha, AVP of Research at Hensex Securities.
5] US Fed rate cut: Because of the uncertainties around the US Fed rate drop, the market is selling. The US Federal Reserve has indicated that it is not in a rush to lower interest rates unless inflation worries are resolved. Core inflation in the US surprisingly slowed, but there were no notable positive surprises in headline consumer prices. According to Avinash Gorakshkar, Head of Research at Profitmart Securities, "there is uncertainty regarding the US Fed rate cut, which is also not allowing the DIIs to counter the selling of FIIs."
The biggest losers in today's trading were Infosys and Axis Bank, with the former dropping 6% and the latter dropping 4.5%. The session ended with 21 Nifty 50 members losing money overall.
Reliance Industries' shares ended up on the winner's list over 3% higher, followed by those of BPCL, Hindalco, Coal India, Nestle India, and Bharat Electronics, all of which saw gains of between 2% and 2.5%. Additionally, Asian Paints ended the day up 2.1%, ending a five-day losing run.
Nifty IT was the biggest loser in terms of sectoral performance, down 2.68%, followed by Nifty Private Bank, which fell 2.17%. On the other hand, Nifty Oil & Gas was the best-performing stock, rising 1.6%. Nifty Realty, Nifty Infra, Nifty Energy, Nifty Metal, and Nifty FMCG all ended the day with gains of more than 1%.
Experts pointed to the following primary causes of today's market decline in addition to the poor revenues of large corporations.
Key causes of the market decline today
Stock market analysts claim that the economic uncertainty surrounding the US economy ahead of Donald Trump's second term is the reason why the Indian stock market is declining. Some of the main factors holding Dalal Street back include the selling of FIIs, the increase in the yield on US bonds, and investors' cautious attitude in the wake of Q3 earnings.
1] Economic uncertainty: "A second Trump administration, especially with its trade and protectionism policies, could drastically alter Asia's economic landscape." As the US prioritizes American interests through trade agreements and tariffs, nations that rely largely on US commerce, such as China, Japan, South Korea, and Vietnam, may suffer difficulties. As businesses diversify their supply chains, Southeast Asia—particularly Indonesia, Malaysia, and Thailand—may gain from more foreign investment as a result of Trump's "decoupling" from China, according to Ross Maxwell, Global Strategy Operations Lead at VT Markets.
2] Cautionary approach during Q3 results season: "Even though the market is anticipating strong Q3 numbers from the Indian banking sector, investors are growing cautious following the poor Infosys results and selling pressure in the banking space," stated Anshul Jain, Head of Research at Lakshmishree Investment and Securities.
3] Rising US dollar, bond yield: "The US bond yield is rising as the US dollar stays strong." Money has been moving from stocks and other assets to the US currency and bond markets as a result of this. According to Anshul Jain, this is another factor contributing to the Indian equity market's weakness.
4] FIIs' selling: "FIIs are consistently selling in the Indian markets because of the alluring opportunities in the US bond and currency market. However, because they are awaiting the Union Budget 2025, DIIs are not stepping forward. The Indian stock market's ongoing decline can also be attributed to this, according to Mahesh M. Ojha, AVP of Research at Hensex Securities.
5] US Fed rate cut: Because of the uncertainties around the US Fed rate drop, the market is selling. The US Federal Reserve has indicated that it is not in a rush to lower interest rates unless inflation worries are resolved. Core inflation in the US surprisingly slowed, but there were no notable positive surprises in headline consumer prices. According to Avinash Gorakshkar, Head of Research at Profitmart Securities, "there is uncertainty regarding the US Fed rate cut, which is also not allowing the DIIs to counter the selling of FIIs."
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