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Key gauges extend fall; Nifty settles below 23,100 mark
Jan-13-2025

Falling for the fourth straight session, Indian equity benchmarks witnessed a sharp sell-off on Monday, ending the session in deep red, tracking heavy selling in global equities and a spike in international crude prices. Concerns over economic growth and a slowdown in quarterly earnings sapped investors’ risk appetite. The broader indices also experienced significant losses, tumbling over 4 percent each.  

Some of the important factors for the markets:

Persistent foreign fund outflows: According to exchange data, foreign institutional investors (FIIs) offloaded Rs 2,254.68 crore in the capital markets on a net basis on Friday. So far this month foreign investors have withdrawn Rs 22,194 crore from Indian equities. 

Traders overlooked IIP data & awaited CPI data: Traders ignored data showing that the India’s Index of Industrial Production (IIP) surged to a six-month high of 5.2 per cent in November 2024 from 3.7 per cent in the previous month, aided by a low base. Now, traders awaited December CPI inflation figures to be released later in the day.   

Rupee at record low: Indian rupee has seen sharp depreciation since the morning and fell at its historic low of 86.62 (provisional) against the U.S. dollar, weighed down by a stronger American currency and surging crude oil prices. 

Surging crude oil prices: The US has imposed more sanctions on Russia, triggering Brent oil higher towards $81 per barrel. 

Global markets: European markets were trading lower amidst caution ahead of the release of CPI numbers from the U.S. on Wednesday. Asian markets settled down as upbeat U.S. jobs data dimmed prospects of a rate cut by the Federal Reserve this month. 

Finally, the BSE Sensex fell 1048.90 points or 1.36% to 76,330.01, and the CNX Nifty was down by 345.55 points or 1.47% to 23,085.95.   

The BSE Sensex touched high and low of 77,128.35 and 76,249.72 respectively. There were 4 stocks advancing against 26 stocks declining on the index.           

The broader indices ended in red; the BSE Mid cap index fell 4.17%, while Small cap index was down by 4.14%.

The top losing sectoral indices on the BSE were Realty down by 6.59%, Utilities down by 4.38%, Power down by 4.23%, Industrials down by 4.09% and Consumer discretionary down by 4.04%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Axis Bank up by 0.78%, TCS up by 0.62%, Hindustan Unilever up by 0.45% and Indusind Bank up by 0.41%. On the flip side, Zomato down by 6.52%, Power Grid Corporation down by 4.09%, Adani Ports &SEZ down by 4.08%, Tata Steel down by 3.49% and NTPC down by 3.23% were the top losers. 

Meanwhile, Union Minister of Commerce & Industry, Piyush Goyal has said that India has the potential to reach $100 billion of combined exports in the Food & Beverage (F&B), agriculture and marine products industries in the next five years. He emphasized that the target is not very ambitious as the industries need to grow at a combined rate of 14-15%. 

Goyal further urged the Indian companies to invest in innovation, in better packaging, in sustainability, to mechanise their processes to make them more hygienic and encouraged the stakeholders to bring out high-value products on nutrition that can be used by the Government for its food security programmes in the country.

On promoting sustainability in the food industry, the Minister highlighted that the Government is prioritizing to make farming processes sustainable and is working to promote organic farming and food products. There is a tremendous growth potential in organic farming and the Government has eased certification processes for organic foods while maintaining the sanctity and traceability to ensure no irregularities creep in the system.  

Commerce Minister also said that the Government is looking to expand food testing laboratories across the nation and also noted that the Government will also welcome suggestions on equipment and processes needed to set up high quality testing laboratory facilities.

The CNX Nifty traded in a range of 23,340.95 and 23,047.25. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were TCS up by 0.78%, Indusind Bank up by 0.58%, Axis Bank up by 0.46% and Hindustan Unilever up by 0.12%. On the flip side, Adani Enterprises down by 6.21%, Trent down by 5.40%, BPCL down by 4.39%, Bharat Electronics down by 4.37% and Power Grid Corporation down by 4.09% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 27.08 points or 0.33% to 8,221.41, France’s CAC fell 62.72 points or 0.84% to 7,368.32 and Germany’s DAX lost 146.28 points or 0.72% to 20,068.51.

Asian markets settled down on Monday, tracking Wall Streets’ fall last Friday with concerns that the US Federal Reserve will likely hold interest rates at current levels for longer after data showed a much bigger than expected increase in US non-farm payroll employment in the month of December. China’s Shanghai Composite declined as investors were awaiting more data this week including the forth-quarter GDP. Although, China's December exports grew at a faster pace than expected as factories rushed to fill orders to beat higher tariffs threatened by US President-elect Donald Trump once he takes office. Market in Japan was closed for a holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,160.76

-7.76

-0.25

Hang Seng

18,874.14

-190.15

-1.01

Jakarta Composite

7,016.88

-71.99

-1.03

KLSE Composite

1,585.59

-16.82

-1.05

Nikkei 225

--

--

--

Straits Times

3,791.70

-9.86

-0.26

KOSPI Composite

2,489.56

-26.22

-1.05

Taiwan Weighted

22,488.33

-523.53

-2.33
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