Sensex Today | Stock Market LIVE Updates: Indian benchmark indices recorded losses for the third consecutive week on Friday, as foreign portfolio investors (FPIs) sold Indian stocks and bonds worth $8.23 billion in January.
In equities alone, FPIs withdrew $7.44 billion, marking the highest outflows since October 2024, when benchmarks declined by around 6%, their steepest drop since March 2020.
Ahead of the Union Budget, attention shifts to the Federal Reserve’s rate decision on Wednesday, with expectations of no change in rates. Investors are keenly monitoring the Fed’s commentary, especially following Trump’s call for lower borrowing costs, to gauge the future direction of interest rates.
Highlights of trade:
- DLF shares rally 5% after strong Q3 performance
DLF shares gained attention on Monday, January 27, climbing 5% to an intraday high of ₹731.40 on the BSE. The surge followed the company’s strong Q3 results, which reported a 61% year-on-year (YoY) increase in consolidated net profit to ₹1,059 crore, up from ₹657 crore in the same quarter last year.
- YES Bank shares jump 3% after Q3 PAT jumps 164% to Rs 612 crore
YES Bank shares surged 3.3% to a day’s high of ₹18.86 on the BSE today, following the release of its Q3 FY25 results. The bank reported an impressive 164.5% year-on-year (YoY) increase in profit after tax (PAT), reaching ₹612.27 crore.
- Q3 results today: Coal India, Tata Steel among 78 companies to announce earnings on Monday
The third-quarter earnings season is in full swing, with 78 companies set to announce their results on Monday. Notable companies to watch include Coal India, Tata Steel, Indian Oil, Bajaj Housing Finance, and Adani Total Gas.
Why is the stock market falling today?
- US Policy Uncertainty
U.S. President Donald Trump recently announced plans to impose 25% tariffs and sanctions on Colombia after its president denied entry to two U.S. military planes carrying deported migrants. Trump stated that the tariffs would take effect “immediately” on all Colombian goods, with the rate set to rise to 50% in one week. However, the tariffs were called off after Colombia agreed to accept deported migrants without restrictions. Concerns about policy uncertainty, especially with potential tariffs on Canada and Mexico set for February 1, have increased pressure on global markets.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “A major concern is that President Trump is introducing new threats, like the 25% tariff on Colombia for refusing to accept deported illegal immigrants. The potential tariffs on Canada and Mexico are weighing on markets.”
- Nervousness Ahead of Fed Rate Decision
Investor attention is focused on the upcoming U.S. Federal Reserve rate decision, scheduled for Wednesday. While the expectation is that the Fed will keep rates unchanged, investors are closely watching the commentary for clues about future rate hikes. The anxiety is heightened by President Trump’s calls for lower borrowing costs, leaving the market uncertain about the direction of interest rates.
- Earnings Slowdown
The earnings season has started on a weak note, with Bloomberg consensus estimates projecting just 3% year-on-year growth in earnings per share (EPS) for Nifty50 companies in Q3. While sectors like capital goods, healthcare, and telecom are expected to show strong double-digit profit after tax (PAT) growth, industries such as metals, chemicals, consumer staples, banks, and oil & gas are likely to underperform.
- Continued FIIs Selling
Ongoing selling by foreign institutional investors (FIIs) continues to weigh on the market. As of January 24, 2025, FIIs have sold equities worth ₹64,156 crore, showing no signs of easing their selling trend.
- Dollar Strength
Concerns about potential additional tariffs on the U.S.’s major trading partners, including China, Mexico, and Canada, have caused unease in global markets. However, Nomura strategist Naka Matsuzawa believes the strength of the dollar, driven by tariff fears, will be short-lived.