Final Trade: Sensex plunges 1,049 pts, Nifty ends below 23,100

Indian equities continued to topple in Monday's trade (January 13, 2025) amid weak global cues, continued FII sell-off,  plummeting domestic currency and an increase in crude oil prices. At the close, Nifty nosedives 345.55 or 1.47 per cent to 23,085.95, while the 30-share Sensex tumbled 1,048.9 points or 1.36 per cent to 76,330.01. 

Broader markets, in a highly volatile session, witnessed a greater rout, with each of the Nifty Midcap 100 and Nifty Smallcap 100 indices ending with a cut of over 4 per cent each.

Pertiently, bearish mood on the D-Street gathered pace after the US payroll data revealed over the weekend came in stronger-than-expected, cautioning investors on the likelihood of U.S interest rate cuts this year. Low interest rates in the US generally encourage capital flows into emerging economies including India.

On the sidelines, the surge in crude oil price to over $81 per barrel and a declining rupee also added to the woes on the D-Street. Crude oil prices have hit over a 3-month high due to US sanctions on Russian oil exports. 

Furthermore, citing, the high U.S. bond yield over 4.7 per cent, analysts expect FIIs to continue to sell offering opportunities for long-term investors to buy reasonably priced large-caps, particularly in banking. 

Vinod Nair, Head of Research, Geojit Financial Services said,  "The global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive. Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment."

Expect volatility in the near term, with the 2025 budget, Q3 results, RBI policy, and Trump's policies are key factors to define the trend in the short-term, he added.

From  the Nifty pack, top gainers included stocks like Axis Bank, IndusInd Bank, TCS and HUL, while the top losers were Adani Enterprises, Trent, BPCL, Adani Ports and Power Grid Corporation.

Sectorally, the D-Street witnessed broad-based sell-off, with the Realty index logging the worst fall of over 6 per cent, followed by Media, Metal and PSU Bank indices among others.

Meanwhile, amid a rise in Brent crude oil price, shares of oil-sensitive stocks including aviation, OMCs, refineries, paint and tyre companies declined.

Prashanth Tapse, Senior VP (Research), Mehta Equities pointed out that technically, Nifty continues to trade way below its 200 DMA and also way below its 200 EMA. The bearish daily technical setup shall exacerbate more pain below 23263, he added.

European stocks, also toppled, amid a broader market selloff today, as global equities faced the wrath after U.S. payroll data reinforced bets that the US Federal Reserve will be cautious in cutting rates this year.