After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.Benchmark equity indices, BSE Sensex and NSE Nifty50, ended the week’s first trading session lower, settling down by over 1% each, dragged by the selling across the counters.At the closing bell, the BSE Sensex stood lower by 824 points (down 1.1%).Meanwhile, the NSE Nifty closed lower by 263 points (down 1.1%).HUL, SBI, and ICICI Bank were the top gainers today.Wipro, Hindalco, and Tech Mahindra on the other hand, were among the top losers today.The GIFT Nifty ended at 22,836 down by 295 points.The BSE Mid Cap ended 2.6% lower and the BSE Small Cap index ended 3.5% lower.Sectoral indices are trading on a negative note with stocks in the metal sector, telecom sector, and power sector witnessing selling pressure.The rupee is trading at 86.33 against the US$.Gold prices for the latest contract on MCX are trading marginally lower at Rs 79,990 per 10 grams.Meanwhile, silver prices are trading 0.7% lower at Rs 90,945 per 1 kg.Here are four reasons why Indian markets are falling today:#1 DeepSeek Sparks Concerns; Chip Stocks DeclineInvestor sentiment has been shaken as tech giants’ AI performance is under the spotlight during this week’s quarterly results.Adding to the concern, China-based DeepSeek launched a free, open-source large-language model in December, developed in just two months for under US$ 6 million. Last week, DeepSeek unveiled r1, a reasoning model that outperformed OpenAI’s latest o1 in several third-party tests.#2 Tariff TensionsA series of tariff threats between the US and Colombia have added pressure on investor sentiment. Colombian President Gustavo Petro rejected US military planes on Sunday, citing concerns about the treatment of Colombian migrants. In retaliation, US President Donald Trump imposed “emergency 25% tariffs” on Colombian imports, with plans to escalate them to 50% in a week.Additionally, a travel ban on Colombian citizens and the revocation of visas for Colombian officials were announced.#3 Nervousness Ahead of the Union BudgetThe Union Budget for FY26 is set to be presented this Saturday, 1 February 2025. Analysts remain cautious, with expectations low due to limited fiscal space, which makes it unlikely for the government to introduce significant economic stimulus measures.#4 Foreign Portfolio Investor (FPI) OutflowsThe Indian Rupee hit a record low of 86.44 against the US Dollar on Monday, down 22 paise due to Trump’s tariff threats. Foreign portfolio investors (FPIs) have already pulled out Rs 641.6 bn (US$ 7.44 bn) from Indian equities this month, adding further pressure on the markets.
Omaxe Shares Soar 4%In news, Shares of pan-India real estate developer Omaxe surged by over 4% on 27 January, even in a sluggish market, following the announcement of its new branding initiative aimed at collaborative property projects with a revenue potential of Rs 50 bn.Omaxe revealed that the projects under its ‘BeTogether’ initiative will involve an investment of over Rs 28 bn over the next 3-5 years, with a potential revenue generation of more than Rs 50 bn.The initiative focuses on joint ventures, collaborations, and development through Public-Private Partnerships (PPP) in areas with infrastructure gaps, with the goal of driving socio-economic growth.Key projects outlined by the company include the JV initiative ‘BeTogether Centre Point Vrindavan’ to modernize the city.Additionally, Omaxe is partnering with the Uttar Pradesh State Road Transport Corporation (UPSRTC) for several PPP projects aimed at upgrading bus terminals in cities like Lucknow, Ghaziabad, Kaushambi, Ayodhya, Amausi, and Prayagraj. Omaxe stated that ‘BeTogether’ would usher urban real estate into a new era.
Laurus Labs Downplays AIDS Funding ImpactMoving on to news from the pharma sector, pharma and biotech company Laurus Labs has in a statement tried to assuage market concerns over the financial impact over the funding halt to US President’s Emergency Plan For AIDS Relief (PEPFAR), and said on 27 January that it sees no impact on procurement.Shares of Laurus Labs have dropped by more than 10% following the announcement of its December quarter earnings, compounded by the market’s reaction to the suspension of PEPFAR funding.The company emphasized that AIDS funding comes from various sources, including individual country governments, PEPFAR, and the Global Fund. Laurus Labs highlighted that global agencies have effectively managed the fight against AIDS thus far.The company further noted that the global Anti-Retroviral (ARV) medicine market, valued at approximately US$ 1.5 bn, constitutes just 10% of the total annual HIV financing budget.
Adani Wilmar Q3 Profit DoublesMoving on to news from the FMCG sector, Adani Wilmar delivered its best-ever quarterly performance for the third quarter of FY25, with net profit surging 105% year-on-year to Rs 4.1 bn, compared to Rs 2 bn in the same period last year.Revenue grew by 31% year-on-year to Rs 168.6 bn, marking the highest quarterly revenue for the company. The strong topline growth was supported by a 5% rise in underlying volumes despite inflationary pressures.The company’s operating EBITDA saw a sharp 57% year-on-year increase to Rs 7.9 bn, while EBITDA margin improved to 4.7% from 3.9%, reflecting operational efficiencies and cost control.Adani Wilmar said in a statement that it had significantly expanded its rural presence, reaching over 43,000 rural towns by December 2024, up from just 5,000 in March 2022. The company aims to further extend its coverage to 50,000 towns by the end of FY25.More By This Author:Sensex Today Trades Lower; Nifty Below 23,000
Sensex Today Ends 330 Points Lower; Nifty Below 23,100
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