Markets Start the Week in the Red Amid Global Weakness
Indian equity markets opened the week with a sharp decline on January 13, 2025, with benchmark indices Sensex and Nifty witnessing a gap-down opening. Weakness in PSU banks and realty stocks led the losses, while negative global cues further added to the bearish sentiment.
At 9:20 am, the Sensex was down 798.34 points, or 1.03 percent, trading at 76,580.57, while the Nifty fell by 246.35 points, or 1.05 percent, to 23,185.15. Market breadth was negative, with 737 stocks advancing, 1,941 stocks declining, and 172 stocks remaining unchanged.
Global Cues Weigh on Domestic Sentiment
Weak global markets played a significant role in dragging down Indian indices.
- Asia-Pacific Markets: Opened lower following a disappointing U.S. jobs report on Friday that reduced hopes of an early Federal Reserve rate cut.
- Wall Street Impact: Major U.S. indexes logged back-to-back weekly losses, adding to global risk aversion.
- Rising Dollar Index: The dollar index soared to its highest level since 2022, putting additional pressure on emerging markets.
- Indian Rupee Hits Record Low: The Indian rupee opened at a record low of Rs 86.18 against the U.S. dollar, reflecting the strength of the greenback and heightened domestic economic concerns.
Sectoral Performance and Broader Market Trends in nifty
All sectoral indices traded in the red as bearish sentiment dominated the markets:
- Nifty Realty: Declined over 2 percent, led by heavyweights such as DLF, Godrej Properties, and Oberoi Realty.
- Nifty PSU Bank: Registered its fourth consecutive session of losses, falling 1.5 percent due to weak Q3 updates from select banks.
- Nifty Metal: Stocks such as Tata Steel, JSW Steel, and Vedanta dragged the index lower.
- Mid and Small-Cap Indices: These segments fell by 1 percent and 0.8 percent, respectively, following a stellar performance in 2024, when they surged over 20 percent.
Stock-Specific Movements
DMart: Shares of Avenue Supermarts dropped over 2 percent after weak Q3 results. The company reported a 4.9 percent YoY rise in consolidated net profit at Rs 723.54 crore, falling short of market expectations.
Biocon: Biocon gained 3 percent after the U.S. FDA cleared its insulin facility in Malaysia, enabling product filings from the plant.
Waaree Energies: Shares rose 2 percent after announcing the acquisition of a 100 percent stake in Enel Green Power India for Rs 792 crore.
Support and Resistance Levels
Analysts provided key levels to watch for traders navigating the current market volatility:
- Nifty Support:
- Immediate support at 23,200.
- A breach could see the index testing 23,000 or 22,800, signaling further bearish trends.
- Nifty Resistance:
- Immediate resistance at 23,500.
- A breakout above this could lead to levels of 23,600 or 23,800, providing temporary relief to bulls.
- Bank Nifty Support:
- Key levels at 48,400, 47,900, and 47,500.
- Below 47,500, bearish momentum could intensify.
- Bank Nifty Resistance:
- Immediate resistance seen at 48,800, followed by 49,400 and 50,000.
Expert Opinions
Ajit Mishra, Senior Vice President at Religare Broking, commented,
“The market remains under strain, with minor pullbacks attracting selling pressure. As the earnings season progresses, expect heightened volatility. In the absence of a clear trend reversal, traders are advised to use rebounds as shorting opportunities and focus on robust risk management.”
Hardik Matalia, Derivative Analyst at Choice Broking, added,
“Stock-specific action will dominate, with sectors like IT, FMCG, and pharma showing resilience. Broader markets, however, may remain under pressure as valuations in mid and small caps appear stretched in some cases.”
Conclusion
Monday’s session marked a challenging start to the week for Indian equities, with bearish sentiment driven by weak global cues and sectoral underperformance. While select stocks such as Biocon and Waaree Energies bucked the trend, most indices struggled to find footing.
As earnings season picks up pace, market participants should brace for increased volatility and focus on stock-specific opportunities. Key support and resistance levels will remain critical in shaping the short-term outlook for the Nifty and Bank Nifty.
Market participants are also keeping an eye on global developments, particularly in the U.S. and Europe, as these could further influence domestic markets.
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