Nifty skids below 23,550 mark; European market decline

The key domestic indices traded with significant losses in afternoon trade, following a subdued market sentiment ahead of Tata Consultancy Services' quarterly results, with expectations of fewer rate cuts in the U.S. in 2025 adding to market caution. The Nifty dropped below the 23,550 level.

Auto and FMCG shares advanced while realty, oil & gas and financial services shares declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex declined 504.51 points or 0.65% to 77,643.94. The Nifty 50 index tumbled 145.30points or 0.61% to 23,543.65.

In the broader market, the S&P BSE Mid-Cap index shed 0.58% and the S&P BSE Small-Cap index fell 0.79%.

The market breadth was weak. On the BSE, 1,327 shares rose and 2,523 shares fell. A total of 127 shares were unchanged.

Gainers & Losers :

Kotak Mahindra Bank (up 1.66%), Hindustan Unilever (up 1.13%), Bajaj Auto (up 1.10%), Hindalco Industries (up 0.83%) and ITC (up 0.82%) were the major Nifty gainers.

Hindalco Industries rose 0.83%. The company's wholly owned subsidiary, Novelis said that its indirect wholly owned subsidiary, Novelis Corporation has decided to raise 6.875% senior notes aggregating to $750 million via private offering.

ONGC (down 2.87%), Shriram Finance (down 2.68%), Larsen & Tourbro (down 2.07%), HDFC Bank (down 1.99%) andWipro (down 1.88%) were the major Nifty losers.

Stocks in Spotlight:

Tata Motors declined 1.41%. The company said that its wholly owned subsidiary, Jaguar Land Rover (UK) reported 3% increase in wholesale volumes to 104,427 units in Q3 FY25 as compared with 101,043 units in Q3 FY24.

PNG Jewellers fell 2.64%. The company announced that it has witnessed a consolidated YoY growth of around 24% in Q3 FY25, driven by a strong increase in same store sales growth, festive demand in Dussehra, Diwali and the wedding season.

Keystone Realtors shed 0.84%. The company said that it had recorded 40% growth in its pre-sales to Rs 863 crore in Q3 FY25 from Rs 616 crore in Q3 FY24. The area sold during the period under review aggregated to 0.41 million square feet, which is higher by 10% as compared with the area of 0.37 million square feet sold in the same period last year.

Manappuram Finance jumped 1.08% after the Reserve Bank of India lifted the restrictions imposed on Asirvad Micro Finance with respect to sanction or disbursal of loans with immediate effect.

Ajmera Realty & Infra India tumbled 2.76%. The infrastructure company registered collections of Rs 167 crore in Q3 FY25, up by 10% from Rs 151 crore recorded in Q3 FY24.

Borosil Renewables hit an upper circuit of 5% after the company announced plans to expand its solar glass manufacturing capacity by 50% of its present capacity in manufacturing of solar glass.

Anand Rathi Wealth rallied 2.67% after the company's board scheduled a meeting on 13 January 2025 to consider a proposal of bonus issue.

Global Markets:

The Dow Jones index futures were down 60 points, signaling a negative opening for U.S. stocks today. Investors grappled with the prospect of slower interest rate cuts in 2025 while also speculating over increased trade tariffs under President Donald Trump.

European market declined as the inflation outlook in the U.S., Asia and Europe takes center stage this week, with markets grappling with concerns about persistent inflationary pressures.

Asian shares traded mixed on Thursday as Wall Street investors remained cautious ahead of Friday's crucial jobs report, which will provide further insights into the state of the US labor market. Key economic data in Asia today will include China's inflation reading.

US markets are closed today for a national day of mourning to honor the passing of former President Jimmy Carter.

Wall Street indexes moved in a tight range on Wednesday after marking a weak start to 2025.

The S&P 500 rose 0.1% to 5,917.30 points on Wednesday, while the NASDAQ Composite fell 0.1% to 19,475.93 points. The Dow Jones Industrial Average rose 0.3% to 42,635.20 points.

Technology stocks weighed on Wall Street sentiment as investors booked profits after a strong 2024 performance. Market participants are now keenly awaiting the start of the fourth-quarter earnings season next week, with major banks set to release their results.

The minutes of the Federal Reserve's December meeting revealed that policymakers are increasingly inclined towards a slower pace of interest rate cuts this year, citing concerns about persistent inflationary pressures.

The minutes reiterated the central bank's hawkish stance, confirming a reduction in the projected number of rate cuts for 2025 from four to two. Some Fed officials expressed concerns that protectionist policies implemented under the Trump administration could continue to fuel inflation and hinder economic growth. The minutes highlighted the potential impact of changes in trade and immigration policy on the inflation outlook, suggesting that the fight against inflation may be more prolonged than initially anticipated.

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