Summary of the Day's Market Performance

Market Overview

• Sensex: Declined 528.28 points (-0.68%) to close at 77,620.21.

• Nifty: Dropped 162.45 points (-0.69%) to end at 23,526.50.

• Midcap & Smallcap Indices: Both shed 1% each.

• Sectoral Performance:

  • Outperformer: FMCG (closed in the green).

  • Lagging Sectors: Capital Goods, IT, Metal, Oil & Gas, PSU Banks, Power, Realty (down 1-2%).

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-7,170.87 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹7,639.63 crore (Net Buyers)

Persistent FII outflows and substantial DII buying shaped market dynamics.

1. Global Cues Drag Markets Lower:

   • A sell-off in US bonds caused the 10-year Treasury yield to surge to its highest level since April 2024, signaling expectations of fewer Fed rate cuts.

   • Disappointing China's inflation data added pressure and highlighted the limited impact of recent stimulus efforts.

2. Domestic Trends:

   • The FMCG sector stood out as the lone gainer amid declining Q3 earnings expectations.

   • Investors adopted a cautious stance, anticipating only modest improvement in corporate results.

• What Is an Offer for Sale (OFS)?

  • An OFS allows promoters to sell their shares in a publicly traded company to institutional and retail investors.

  • It’s a quick and efficient method of raising funds or reducing promoter holdings to comply with regulatory requirements.

Key Stock Movements and News

• Top Gainers:

  • HUL, Britannia Industries, Nestle India, M&M, Bajaj Auto.

• Top Losers:

  • Shriram Finance, ONGC, Tata Steel, Coal India, BPCL.

1. Adani Wilmar:

   • Opens OFS for 20% stake on January 10, with a floor price of ₹275/share.

2. Indraprastha Gas (IGL):

   • Shares rose as GAIL increased domestic CNG allocation to 51% from the current 37%, effective January 16.

3. Manappuram Finance:

   • Shares rallied 6% intraday after the RBI lifted lending restrictions on its microfinance unit. Jefferies raised its target price to ₹190/share from ₹167/share.

4. Tata Elxsi:

   • Reported a decline in net profit to ₹199 crore, with revenue growing 2.7% YoY but falling 1.7% QoQ.

5. Swiggy:

   • Bernstein initiated coverage with an 'outperform' rating and a projected 25% upside, driving stock gains.

6. Religare Enterprises:

   • Shares gained following the Madhya Pradesh HC's approval to conduct its AGM and open offer.

7. Acme Solar:

   • The stock rose 3% after commissioning 1,023 MW of solar projects in Rajasthan.

1. Manappuram Finance: Positive momentum following the lifting of RBI restrictions and analyst upgrades.

2. Indraprastha Gas (IGL): Benefiting from higher domestic allocation in CNG.

3. Acme Solar: Continued gains expected from large solar project commissioning.

4. Swiggy: Strong institutional interest could drive near-term upside.

The Indian equity market closed lower, mirroring weakness in global peers, as surging US bond yields and poor China inflation data weighed on sentiment. Despite heavy selling across most sectors, FMCG outperformed, offering some relief. With continued FII outflows and modest Q3 earnings expectations, markets are likely to remain under pressure in the near term. Key stocks such as Manappuram Finance, IGL, and Acme Solar are poised for further traction based on positive developments.

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