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Nifty 50 opened at 21,414.20, hitting an intraday low of 21,285.55, and closed 0.51% lower at 21,462.25.
Sensex opened at 71,018.86, touching an intraday low of 70,665.50, and closed 0.44% lower at 71,186.86.
This decline marked the worst single-day percentage fall in about 18 months, triggered by HDFC Bank’s Q3 earnings announcement the previous day.
Impact on the stock market
In the sectoral indices, there were notable losses in Nifty Consumer Durables (down 1.70%), Financial Services (down 1%), Metal (down 0.84%), and Private Bank (down 0.82%).
Nifty Bank saw a 0.76% decrease, but the PSU Bank index rose by 0.81%. On a positive note, Nifty Pharma ended 1.03% higher.
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| Sector/Index | Performance |
| Information Technology | -0.62% |
| Healthcare | +0.63% |
| Oil & Gas | +0.60% |
| Realty | +0.72% |
| PSU Banks | +0.81% |
Top gainers today
| Company | Price | Change (%age) |
| Sun Pharma | 1,335.75 | + 2.83% |
| Cipla | 1,322.95 | + 2.24% |
| Tech Mahindra | 1,355.15 | + 2.14% |
| Tata Motors | 819.05 | + 1.68% |
| Axis Bank | 1,097.50 | + 1.40% |
Top losers today
| Company | Price | Change (%age) |
| LTIMindtree | 5,603.00 | – 10.72% |
| HDFC Bank | 1,486.15 | – 3.34% |
| NTPC | 299.30 | – 3.23% |
| Titan Company | 3,734.70 | – 2.49% |
| Asian Paints | 3,163.85 | – 2.42% |
Market aftermath: Impact on stocks
FIIs dump ₹10,578.13 crore
Indian stock markets faced a sharp 2% decline as banking, metal, and oil shares plummeted, driven by global uncertainties. FIIs sold stocks worth ₹10,578.13 crore, marking a significant outflow. In contrast, DIIs saw an inflow of ₹4,006.44 crore.
The Sensex fell 2.23%, shedding 1,628.01 points. FIIs had purchased equities worth ₹656.57 crore the previous day. This correction, attributed to elevated valuations and already factored-in optimism, resulted in key indices’ worst single-day losses since June 2022.
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Sanghi Industries plunges 10%
Sanghi Industries faced a third consecutive session of decline, dropping 10% on January 18, adding to the previous day’s 10% fall. The company’s shares traded at Rs 121.40 on the NSE, with high volumes of 63 lakh, well above the one-month daily average of 11 lakh.
Sanghi Industries’ profitability concerns stem from a fixed 10% markup deal with Ambuja Cements, limiting its ability to secure competitive market prices for cement output. Ambuja Cements owns 54.51% of Sanghi Industries.
South Indian Bank surges 12.5%
South Indian Bank’s stock surged by 12.5% to a new 52-week high of ₹31.9 apiece after reporting a remarkable 197.2% YoY increase in Q3 FY24 net profit to ₹305 crore.
The bank’s personal loan book grew by ₹578 crore to Rs.2,186 crore, a 35.91% YoY improvement. Net interest income reached ₹819 crore, and provisions stood at ₹49 crore.
Crude oil futures rally
Crude oil futures surge as US production disruption and positive OPEC demand outlook drive prices. March Brent oil trades at $78.08, up 0.26%, and March WTI oil at $72.80, up 0.44%. On MCX, January crude oil futures rise to ₹6059, up 1.46%, and February futures to ₹6071, up 1.10%.
Conclusion
Amidst a bumpy market ride, today’s setbacks echoed in the Nifty 50 and Sensex, marking their third consecutive decline. Global uncertainties led to a significant outflow of ₹10,578.13 crore by FIIs.
While Sanghi Industries faced woes, South Indian Bank shone with a stellar 197.2% YoY surge in net profit. Crude oil futures rallied on production disruptions, adding an interesting twist to the market tale.
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