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Market Update

Nifty : 22,547.55 5.80 (-0.03%)

Sensex : 74,602.12

• The equity benchmark Nifty ended flat today amid concerns over potential reciprocal tariffs from the US, ahead of the Nifty February series F&O expiry on Thursday and continued selling pressure from foreign institutional investors (FIIs). Additionally, the domestic market will be closed tomorrow, and the upcoming quarterly results of US tech giant Nvidia kept the Nifty in a sideways motion.

• US President Donald Trump's decision to restrict Chinese investments and proceed with scheduled tariffs on Canada and Mexico dampened market sentiment not just in India, but across Asian and European markets as well. The Nifty slipped 5 points to close at 22,547, while the Sensex rose by 147 points or 0.2%, closing at 74,602.

• However, the broader market showed weakness due to profit booking in mid-cap and small-cap stocks, with the Nifty 500 advance-decline ratio at 1:2. Metal, PSU Bank, realty, and IT stocks were the biggest losers, while select Adani group, auto, and diagnostics stocks saw some buying interest.

• The Nifty IT Index fell nearly 1% amid concerns that weak US PMI data could negatively impact domestic IT offshore income. The Nifty Metal Index dropped by 1.5% due to concerns over weak global demand. National Aluminium fell by 4.5%, closing at Rs181, while Hindalco, Vedanta, SAIL, and NMDC saw declines of 2-3%.

• Diagnostics stocks saw renewed buying interest, with Vijaya Diagnostics soaring 15% to close at Rs1,061. Other stocks like Fortis, Max Healthcare, and Krsnaa Diagnostics gained between 1% and 3%. 147.71 (0.20%)

Technical Outlook:

• Nifty index opened on a negative note and remained within the range of its first-hour candle clearly indicating a lack of momentum on either side. Throughout the day, the index traded in a very narrow range of 60-70 points showing indecisiveness in the market. However, in the last hour of the session, selling pressure from the bears dragged the index lower.

• On the daily chart, Nifty formed a small bodied candle with a longer upper shadow indicating selling pressure at higher levels. Now till it holds below 22800 zones, weakness could be seen towards 22400 then 22250 zones whereas hurdles are placed at 22700 then 22800 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.21% at 22565 levels. Positive setup seen in Chambal Fertilizer, Laurus Labs, Bharti Airtel, Abbot India, Ashok Leyland, Havells India, Manappuram Finance, Bajaj Finance, KEI Industries, Bata India and Bajaj FinServ while weakness in Dr. LalPath Labs, VBL, National Aluminum, Dr. Reddy, LTTS, LIC Housing Finance, PB Fintech, Bsoft, Oil India, HCL Tech, Paytm and LICI.

* On option front, Maximum Call OI is at 22500 then 23000 strike while Maximum Put OI is at 22600 then 22500 strike. Call writing is seen at 22700 then 22650 strike while Put writing is seen at 22600 then 22500 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22400 to 22800 levels.

* Axis Is Said to Consider Selling Stake in $1 Billion Shadow Bank - Company is considering options for Axis Finance, including the possible sale of a majority stake in the shadow-bank unit. The private sector lender is working with an adviser on a strategic review for Axis Finance. The bank may seek a valuation of $900 million to $1 billion in a potential transaction, the people said.

* Adani Group to invest Rs 50,000 crore across multiple projects in Assam, says Chairman Gautam Adani – Company announced an investment of Rs 50,000 crore for the state. The announcement was made during

* the Advantage Assam 2.0 Investment & Infrastructure Summit 2025 in Guwahati. The investment will be channeled into vital infrastructure sectors including airports, aero cities, city gas distribution, transmission networks, cement production, and road projects.

* Government considers Bankruptcy Law - The government is considering changes to its bankruptcy laws, including streamlining court processes, amid growing concerns over lengthy proceedings and low recovery

* rates. The Insolvency and Bankruptcy Board of India is finalizing a set of proposals aimed at speeding up resolution. Public consultation is set to end Tuesday, though the deadline may be extended.

* BluSmart co-founders' green energy firm Gensol to sell US unit - BluSmart Mobility co-founders Puneet Singh Jaggi and Anmol Singh Jaggi's listed renewable energy firm Gensol Engineering will hive off its US subsidiary for Rs 350 crore. Gensol Engineering will sell Scorpius Trackers Inc. to a major US-based renewable energy solutions provider as per a non-binding agreement.

* Bhagyanagar India - Company has been awarded a Letter of Award from Maharashtra State Electricity Distribution Company involving an overall investment of Rs 245 crore.

* Bharti Airtel ties up with Ericsson to boost 5G network in India - Company has partnered with Ericsson to deploy the latter's high-performing 5G Core network offerings that will enable Airtel to seamlessly transition to a commercially live, full-scale 5G standalone network in India over timeVenus Remedies – Company secures exclusive inlicensing rights from Infex Therapeutics to develop and commercialize MET-X In India.

* TVS Holding - TVS Emerald, a leading real estate developer, has acquired a 10-acre land parcel in Sathnur, Bengaluru. The new acquisition, with a development potential of 1.4 million sq. ft., is expected to generate Rs 1600 crore in revenue. – Expect positive as the company is holding above 74% equity of TVS Emerald

* Tata Play, Airtel Digital TV Merger Deal in Final Stages: - Tata Group and Bharti Group are in final stages of merging their direct-to-home businesses Tata Play and Airtel Digital TV. The merger will take place through a share swap deal, with Airtel holding more than 50% in the combined entity.

Global Market Update

* European Market - -- European equities edged higher on Tuesday as gains for the healthcare sector and defense stocks offset a drop for technology companies. Unilever Plc shares dropped following the surprise exit of its chief executive officerUK, Germany and France Index are trading flat.

* Asian Market - Asian markets sank on Tuesday as fears of US President Donald Trump's trade war returned to the fore after he called for fresh curbs on Chinese investments in strategic sectors including technology. They also come ahead of the release of earnings from market darling Nvidia, which will be closely watched for its views on the outlook in light of the Chinese startup's arrival. Japan, China, Taiwan, south Korea and Hong Kong declined nearly 1% each.

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