All the sectoral indices on the NSE were traded in red with realty, consumer durables and metal shares declining the most.
At 13:25 IST, the barometer index, the S&P BSE Sensex, slipped 720.45 points or 0.93% to 77,138.43. The Nifty 50 index lost 230.90 points or 0.98% to 23,329.05.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.13%, and the S&P BSE Small-Cap index declined 2.47%.
The market breadth was weak. On the BSE, 958 shares rose and 3,020 shares fell. A total of 169 shares were unchanged.
Indian Rupee hit a fresh record low against the US dollar on Monday. The currency opened at 87.9400 and touched a fresh all-time low of 87.9525 and is currently trading at 87.6050.
Economy:
India's forex reserves raised USD 1.05 billion to USD 630.607 billion for the week ended January 31, the RBI said on Friday. In the previous reporting week, the overall reserves had increased by USD 5.574 billion to USD 629.557 billion. This is the second consecutive week of an increase in the reserves, which have otherwise been on a declining trend for the last few weeks due to revaluation along with possible forex market interventions by RBI to help reduce volatility in the rupee, as stated by the Governor in the RBI monetary policy meeting.
Politics:
The Bharatiya Janata Party (BJP) won the Delhi legislative assembly elections with 48 out of 70 seats, marking its return to power in the capital after 27 years, while the Aam Aadmi Party (AAP) secured 22 seats. A party that wins more than the halfway mark of 35 seats can form the government.
AAP leaders Arvind Kejriwal and Manish Sisodia lost seats to BJP candidates. The BJP's campaign focused on financial assistance for women and senior citizens, subsidies on essential goods, and infrastructure development. AAP’s vote share declined by approximately 10% compared to the previous election. The Congress party failed to secure any seats for the third consecutive time but saw a slight increase in its vote share.
Gainers & Losers:
Britannia Industries (up 1.28%), Kotak Mahindra Bank (up 0.92%), Bharti Airtel (up 0.60%), Tata Conusmer Durables (up 0.50%) and HCL Techologies (up 0.31%) were the major Nifty gainers.
Trent (down 4.91%), Powergrid Corporation of India (down 3.29%), Tata Steel (down 3.24%), Bajaj Finance (down 2.72%) and Oil & Natural Gas Corporation (ONGC) (down 2.71%)
Stocks in Spotlight:
Mahindra & Mahindra (M&M) shed 0.64%. The company said that its total production fell 3% to 98,470 units in the month of January 2025 as compared with 101,518 units produced in the same period last year.
NHPC declined 2.56% after the company reported a 47.03% decline in consolidated net profit to Rs 330.13 crore in Q3 FY25 from Rs 623.28 crore recorded in Q3 FY24.
VA Tech Wabag advanced 1.90% after the company announced that it has bagged a significant consortium order worth $371 million (approximately Rs 3,251 crore) from Al Haer Environmental Services Company.
Meanwhile, the company has reported 11.61% increase in consolidated net profit to Rs 70.20 crore on 15.13% rise in revenue from operations to Rs 811 crore in Q3 FY25 over Q3 FY24.
Brainbees Solutions (Firstcry) rose 0.75% after the company posted consolidated net loss of Rs 14.73 crore in Q3 FY25, compared with net loss of Rs 48.41 crore posted in Q3 FY24. However, revenue from operations jumped 14.31% to Rs 2,172.3 crore in the third quarter of FY25 as against Rs 1,900.2 crore posted in Q3 FY24.
Sun TV Network slumped 4.59% after the media company’s standalone net profit declined 20.62% to Rs 347.17 crore on 10.38% drop in revenue from operations to Rs 793.58 crore in Q3 FY25 over Q3 FY24.
Shipping Corporation of India dropped 6.39% after the company reported 43.8% decline in consolidated net profit of Rs 75.52 crore in Q3 FY25 as against Rs 134.35 crore posted in Q3 FY24. Revenue from operations slipped 1.9% YoY to Rs 1,315.60 crore in the quarter ended 31 December 2024.
Global Markets:
US Dow Jones index futures were up 68 points, suggesting a positive opening for US equities. However, gains were tempered by anticipation of key US inflation data due this week.
European market advanced as investors awaited major data releases this week, including U.S. inflation data on Wednesday, German inflation and U.K. gross domestic product figures on Thursday and the latest quarterly European growth data on Friday
Asian stocks traded mixed on Monday. U.S. President Donald Trump threatened additional tariffs, including on steel and aluminum. This inflationary measure could reduce the likelihood of rate cuts in the US.
The individual indicated that 25% tariffs on all steel and aluminum imports into the US would be announced on Monday, with other reciprocal tariffs revealed on Tuesday or Wednesday.
These comments followed German Chancellor Olaf Scholz's statement that the European Union was prepared to respond 'within an hour' if the US imposed tariffs on European goods, underscoring the potential for an escalating trade conflict.
China's retaliatory tariffs on certain US exports are scheduled to take effect on Monday, with no apparent progress in discussions between Beijing and Washington.
Wall Street experienced some recovery buying after significant declines on Friday, when Trump signaled intentions to impose tariffs on US imports to match levies from US trading partners on American goods. These plans were reiterated on Sunday.
Trump on Sunday said that 25% tariffs on all steel and aluminum imports to the US would be announced on Monday, shortly after his 10% tariffs on China took effect. These tariffs will supplement existing duties on steel and aluminum, implemented during his previous term and maintained by the current administration, albeit at a reduced level. The move is expected to primarily affect imports from Canada, Brazil, and Mexico, the largest steel exporters to the US. Canada is also the leading aluminum exporter to the US.
On Friday, the S&P 500 decreased by nearly 1%, and the NASDAQ Composite fell by 1.4%. The Dow Jones Industrial Average dropped by 1%. The Federal Reserve Chair is scheduled to testify before the House of Representatives on Tuesday and Wednesday, where the impact of tariffs on monetary policy is likely to be a prominent topic.