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Market Update

* The equity benchmark Sensex dropped by over 200 points, while the Nifty closed below the 23,650 mark, as traders adopted a cautious approach ahead of the upcoming RBI policy meeting tomorrow. Additionally, weak quarterly results from PSU banking giant State Bank of India dampened sentiment. The market was also affected by global volatility and the surge of USDINR to a record high.

* The Nifty fell by 92 points, or 0.4%, ending at 23,603, while the Sensex dropped 213 points, or 0.3%, to finish at 78,058. Realty stocks were the biggest losers, with the Nifty Realty Index dropping 2%. The Nifty Auto, FMCG, and PSU Bank indices each fell by up to 1%. The advancedecline ratio for Nifty 500 stocks was 1:1.5, indicating profit booking in small-cap and mid-cap stocks.

* The Nifty Pharma Index gained 0.6%, driven by Glaxo Pharma, which surged over 13% to close at Rs 2,260. Zydus Life and Abbott India saw gains of 3% and 4.5%, respectively, following strong quarterly results.

* SBI, a PSU banking major, slipped 2% to close at Rs 752. Telecom major Bharti Airtel and two-wheeler manufacturer Hero Motocorp both declined by 2% and 1%, respectively, ahead of their quarterly results due today.

* On the global front, US stock futures rose after Treasury Secretary Scott Bessent stated that the Trump administration is focused on reducing Treasury yields. European stocks rallied due to strong earnings, and the Bank of England is set to announce its interest rate decision today.

Technical Outlook:

* Nifty index opened positive near 23770 marks but lack of follow-up buying at higher levels kept the upside limited. Index moved lower gradually throughout the day and closed with losses of 92 points. In the last half hour, some buying was seen from support zone as index managed to close above 23600 zone.

* It formed a bearish candle on daily frame and has been making lower low – lower high from the last two sessions. Now it has to hold above 23500 zones for an up move towards 23750 then 23900 zones whereas supports are placed at 23500 then 23400 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.28% at 23706 levels. Positive setup seen in Zydus Life, Abbot India, Metropolis, Ipca Labs, Alkem Lab, Cipla, IEX, Naukri, HDFC Bank, Adani Ports, and Laurus Lab while weakness in Trent, Lodha, Page Industries, Jubilant Food, NHPC, Astral, Dmart, ITC, Voltas, BEL and ICICI Lombard.

* On option front, Maximum Call OI is at 24000 then 24500 strike while Maximum Put OI is at 23600 then 23500 strike. Call writing is seen at 23600 then 23700 strike while Put writing is seen at 23600 then 23700 strike. Option data suggests a broader trading range in between 23000 to 24000 zones while an immediate range between 23400 to 23800 levels.

* Kotak Mahindra launches India ETF for international investors - Kotak Mahindra Asset Management has launched the country’s first exchange traded fund tracking the MSCI India index and a separate version of the fund for international investors.

* Defence Ministry set to sign over Rs 10,200 crore Pinaka rocket deal with Solar Industries - The Defence Ministry is set to sign the Rs 10,200 crore contract for ammunition for the Pinaka multi-barrel rocket launcher weapon system on Thursday with Solar Industries, Nagpur and public sector firm Munitions India Limited (MIL). The Cabinet Committee on Security had last week cleared the Indian Army proposal to buy the ammunition including the Area Denial Munitions, said Defence officials.

* Car Sales Surge Over 15% In January 2025 - As many as 4.66 cars were registered last month, as against 2.93 units in the year-ago period—a 15.53% year-on-year rise while sequentially, car sales were up 58.77%.

* Emcure Pharma Q3 results - Revenue up 17.7% (YoY) at Rs 1,963 crore, Ebitda up 15.5% (YoY) at Rs 355 crore, Ebitda margin at 18.1% versus 18.4% (YoY). Net profit up 35.5% (YoY) at Rs 154 crore versus Rs 113 crore

* Prism Johnson Q3 Revenue up 7.5% (YoY) at Rs 1,859 crore, Ebitda down 60.7% (YoY) at Rs 52.5 crore, Ebitda margin at 2.8% versus 7.7% (YoY). Net profit at Rs 46 crore versus a loss of Rs 11.5 crore (YoY).

* Minda Corp Q3FY25 results - Revenue up 7.4% (YoY) at Rs 1,253 crore, Net Profit up 23.5% (YoY) at Rs 65 crore, EBITDA up 10.5% (YoY) at Rs 144 crore and Ebitda Margin at 11.5% versus 11.1%.(YoY)

* Unichem Labs Q3 - Revenue up 14.5% (YoY) at Rs 533 crore, Ebitda at Rs 85.5 crore (up 175% YoY), . Ebitda margin at 16% versus 6.7% (YoY). Net profit down 21% (YoY) at Rs 57.9 crore.

* SBI Q3 FY25 - Net Profit Rs16891cr (up 84% YoY, Operating Profit Rs23550cr (up 16% YoY) , NII Rs41446cr (up 4% YoY) , Gross NPA 2.07% vs 2.13% QoQ , Net NPA 0.53% vs 0.53% QoQ , Provision Rs911cr (down 80% QoQ), slippage at Rs414600cr vs Rs4951cr (QoQ) and other Income Rs11040cr (down 3.7% YoY)

Global Market Update

* European Market - European stocks hit a record high Thursday, boosted by optimism that corporate earnings are remaining resilient at a time of rising trade uncertainties with the US. Germany and France Index gained 0.7% each while UK Index rise 1% ahead of Bank of England Credit policy to be announce today.

* Asian Market – Asian markets stumbled Wednesday and gold hit a new record as investors kept tabs on China and the United States after they exchanged tariffs, sparking fears of another debilitating trade war between the economic superpowers. Japan, Australia, China and Hong Kong Index gained 1% each

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