BROADER MKT DROPS; CONSUMER DURABLES STOCKS SLIDE

The key equity benchmarks traded with major losses in mid-morning trade, following an unexpectedly strong US jobs report, which dampened expectations of early interest rate cuts by the Federal Reserve. At the same time, concerns over slowing earnings continued to persist. The Nifty traded below the 23,250 mark. Consumer Durables shares extended losses for the fourth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, declined 545.12 points or 0.70% to 76,844.52. The Nifty 50 index fell 190 points or 0.83% to 23,240.50.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.39% and the S&P BSE Small-Cap index shed 2.18%.

The market breadth was weak. On the BSE, 939 shares rose and 2,238 shares fell. A total of 157 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, added 5.16% to 15.69.

IPO Update:

The initial public offer of Laxmi Dental received bids for 97,59,783 shares as against 89,70,371 shares on offer, according to stock exchange data at 11:15 IST on 13 January 2025. The issue was subscribed 1.09 times.

The issue opened for bidding on 13 January 2025, and it will close on 15 January 2025. The price band of the IPO is fixed between Rs 407 and Rs 428 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

Economy:

India`s foreign exchange reserves fell by $5.7 billion to $634.59 billion for the week ended January 3, data released by the Reserve Bank of India (RBI) on Friday showed.

Foreign currency assets decreased by $6.441 billion to $545.48 billion, the data released on Friday showed.

Gold reserves increased by $824 million to $67.092 billion during the week. The Special Drawing Rights (SDRs) were down by $58 million to $17.815 billion, the RBI said.

India�s reserve position with the IMF was down by $18 million at $4.199 billion in the reporting week, the apex bank data showed.

Buzzing Index:

The Nifty Consumer Durables index fell 2.35% to 39,630.55. The index slipped 7.11% in four consecutive trading sessions.

Blue Star (down 6.07%), Kalyan Jewellers India (down 5.99%), Amber Enterprises India (down 4.32%), Bata India (down 3.49%), Dixon Technologies (India) (down 3.37%), Whirlpool of India (down 3.15%), Century Plyboards (India) (down 2.93%), Crompton Greaves Consumer Electricals (down 2.42%), Voltas (down 2.25%) and Kajaria Ceramics (down 2.21%) edged lower.

On the other hand, V-Guard Industries (up 0.15%), Titan Company (up 0.09%) added.

Stocks in Spotlight :

NCL Industries declined 3.35% after the company�s cement production stood at 661,049 MT in Q3 FY25, registering a de-growth of 12% as compared with 749,703 MT produced in Q3 FY24.

UGRO Capital fell 2.44%. The non-banking financial company�s (NBFC) asset under management (AUM) jumped 32% to over Rs 11,050 crore in Q3 FY25 as compared with Rs 8,364 crore in Q3 FY24.

Global Markets:

U.S. stock futures point to a negative open Monday, with the Dow Jones Industrial Average futures down 50 points.

Asian shares traded lower on Monday, following a strong US jobs report on Friday that fueled concerns about persistent inflation. This led to a rise in US Treasury yields and boosted the dollar. Brent crude oil prices surged to their highest level in over four months, exceeding $81 per barrel, amid renewed US sanctions against Russia.

China�s exports and imports in December beat expectations by a significant margin. Exports rose 10.7% from a year earlier, beating Reuters� expectations of 7.3% year-on-year growth. The country�s imports in December unexpectedly rose 1%, compared with Reuters� estimates of a 1.5% decline.

The robust job data reinforced expectations that the Federal Reserve will maintain its current interest rate stance. Investors are now keenly awaiting key US inflation data this week, including the Consumer Price Index (CPI) report on Wednesday, the New York Fed`s one-year inflation expectations on Monday, producer prices on Tuesday, and jobless claims on Thursday.

The US stock market closed lower on Friday after the strong jobs report reignited inflation fears. The Dow Jones Industrial Average plunged 1.63%, the S&P 500 declined 1.54%, and the Nasdaq Composite fell 1.63%.

Nvidia shares dropped 3%, while Advanced Micro Devices stock price fell 4.76% and Apple share price declined 2.41%. Constellation Energy stock jumped 25.16%, while Constellation Brands tanked 17.09%. Walgreens Boots Alliance stock price soared 27.55%.

The Labor Department reported that US nonfarm payrolls increased by 256,000 jobs in December, the largest increase since March. The unemployment rate fell to 4.1%.

Investors are now turning their attention to the upcoming fourth-quarter earnings season, which begins this week with several major Wall Street banks reporting their results.

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