The Indian stock market witnessed another day of turmoil as the Sensex and Nifty extended their losing streak for the sixth consecutive session.
Trade war fears, disappointing earnings, and foreign investor sell-offs weighed heavily on market sentiment.
However, a late recovery in large-cap stocks and strong mutual fund inflows provided some respite. Below, we break down the key highlights and actionable insights for traders and investors.
Key Market Updates: Sensex and Nifty Performance
| Metric | Details |
|---|---|
| Sensex | Closed at 76,171.08, down 122.52 points (0.16%). |
| Nifty 50 | Closed at 23,045.25, down 26.55 points (0.12%). |
| Small-Cap Index | Down 21.4% from record highs, nearing bear market territory. |
| Mid-Cap Index | Down 17% from its peak. |
| Retail Inflation | Dropped to 4.31%, offering some relief. |
| Foreign Investor Activity | Significant selling due to U.S. tariff concerns. |
| Financial Sector | Rose 0.45%, breaking a five-day losing streak. |
Why Did the Market Rebound? 3 Key Reasons
1. Value Buying in Large-Caps
Investors shifted focus to large-cap stocks, which are now trading at fair valuations compared to overvalued mid and small-cap stocks. As V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The current weakness offers an opportunity to move from mid and smallcaps to fairly valued largecaps.”
2. Strong Mutual Fund Inflows
Despite market volatility, equity mutual funds saw robust inflows of nearly Rs 40,000 crore in January. This indicates sustained investor confidence and a willingness to capitalize on market dips.
3. Technical Support for Nifty
The Nifty found strong support near its January low of 22,800, triggering a technical rebound. Analysts suggest that holding above this level could lead to a recovery towards 23,500–23,600.
Sectoral Performance: Winners and Losers
| Sector | Performance |
|---|---|
| Nifty Auto | Among the biggest losers due to sector-wide selling pressure. |
| Nifty Pharma | Faced significant declines amid broader market weakness. |
| Nifty IT | Underperformed due to global trade war concerns. |
| Nifty PSU Bank | Among the biggest gainers, providing crucial support to the indices. |
| Nifty Metal | Gained on the back of strong performances by Tata Steel and other metal stocks. |
Stock-Specific Updates
Top Gainers
- Bajaj Finserv, Tata Steel, Larsen & Toubro, UltraTech Cement, Kotak Mahindra Bank, Tata Motors: These large-cap stocks drove the market recovery.
- TVS Motor Company: Announced a Rs 2,000 crore investment in Karnataka, boosting its stock by 0.27%.
- Jupiter Wagons: Secured a Rs 600 crore order from Ambuja Cements and ACC, rising 2.30%.
Top Losers
- Vodafone Idea: Fell 4.65% despite a slight improvement in revenue.
- BEML: Dropped 1.91% despite signing strategic partnerships with STX Engine and Goa Shipyard.
- Real Estate Stocks: Down 4-7% due to concerns over slowing demand.
- Indicator used on charts: Risological.com
Earnings Roundup
| Company | Performance |
|---|---|
| Indo Count Industries | Net profit up 30% YoY to Rs 75 crore; revenue grew 61%. |
| Berger Paints | Net profit fell 1.40%, but total income rose 3.26%. |
| Dalmia Bharat Sugar | Net profit down 8.33%, but total income surged 41.61%. |
| Ashok Leyland | Rose 8% after reporting strong Q3 earnings. |
| Jubilant Foodworks | Fell 3% due to missed margin estimates. |
Market Breadth and Sentiment
- Advance-Decline Ratio: 0.63 on the BSE, indicating more declines than advances.
- 52-Week Highs/Lows: 18 stocks hit new 52-week highs, while 611 touched new lows.
- Broader Market Recovery: Midcap index recovered 1,400 points from its low but still closed 132 points lower.
What’s Next for Traders and Investors?
Key Levels to Watch
- Nifty Support: 22,800 (critical level for near-term recovery).
- Nifty Resistance: 23,200 (immediate hurdle).
Actionable Insights
- Focus on Large-Caps: Shift focus to fairly valued large-cap stocks for stability.
- Monitor Mutual Fund Trends: Strong inflows indicate long-term investor confidence.
- Leverage Technical Indicators: Use tools like the best indicator for option trading to navigate volatility.
Further Reading
- Brightcom Group SEBI Crackdown: Market Ban
- Aswath Damodaran: India’s Equity Market World’s Most Expensive
- Trump’s 25% Steel and Aluminum Tariffs Shake Global Markets
- Nifty Extends Fall for Fifth Consecutive Day
- New Income Tax Bill 2025 India
- Trading Indicators to Improve Discipline
Disclaimer: The views and investment tips expressed by experts on Risological are their own and not those of the website or its management. Risological advises users to consult certified experts before making any investment decisions.
By staying informed and leveraging the right tools, traders and investors can navigate these challenging market conditions effectively. Keep an eye on key levels, sectoral trends, and earnings reports to make informed decisions.
