Stock Market Update: Indian equity benchmarks, BSE Sensex and Nifty50, started Friday on a positive note but erased the gains later. At 10 am, the Sensex dropped by 180.68 points, or 0.24 per cent, to 76,339.70, while the Nifty fell by 69.70 points, or 0.30 per cent, to 23,135.65. There were 1,021 advances, 2,034 declines, and 137 stocks remained unchanged.
On Thursday, both indices posted slight gains on the weekly expiry day, mainly supported by a rebound in IT stocks that boosted the Nifty. However, analysts caution against reading too much into this upward move, suggesting a “sell on rise” approach for the index. They also highlight that stock-specific opportunities remain abundant across various sectors.
Sectorial Update
Among sectoral indices, Nifty Metal and Oil & Gas led the gains, both rising by nearly 1 per cent. Tata Steel, JSW Steel, and NMDC were key contributors to the initial surge. Nifty FMCG, IT, and Auto sectors each saw a 0.3 per cent increase. However, Nifty Pharma dropped nearly 2 per cent, mainly driven by a sharp decline in Dr Reddy’s after its Q3 earnings report.
Broder Market
The broader market, represented by mid- and small-cap stocks, reversed its gains from the previous session, dipping into the red. The mid-cap index fell 0.2 per cent, and the small-cap index dropped 0.5 per cent. After a significant 2 per cent decline on January 22, the broader market is likely to continue facing pressure amid ongoing uncertainty and volatility.
Shares of Adani Green Energy surged after reporting strong third-quarter results. The company’s consolidated net profit soared more than 85 per cent to Rs 474 crore, up from Rs 256 crore a year ago. Additionally, the renewable energy firm, part of the Gautam Adani-led Adani Group, saw a 2.3 per cent increase in revenue from operations, reaching Rs 2,365 crore compared to Rs 2,311 crore in the same quarter last year.
Gold prices inched higher on Friday, heading for a fourth consecutive weekly gain. The uncertainty surrounding U.S. President Donald Trump’s trade plans weakened the dollar, driving increased demand for the safe-haven metal.
Foreign portfolio investors (FPIs) turned net sellers on Thursday, offloading shares worth Rs 5,462 crore, while domestic institutional investors (DIIs) picked up shares of Rs 3,713 crore.
Additionally, the net short position of FIIs decreased from Rs 3.5 lakh crore on Wednesday to Rs 3.28 lakh crore on Thursday.