January 13th 2025 to January 17th 2025
Welcome to the latest edition of market analysis presented by Riddhi Siddhi Share Brokers, your trusted partner for navigating Dalal Street. Let’s dive into how global and domestic markets performed in the week gone by and what lies ahead.
Wall Street Soars, Dalal Street Falters
Last week, Wall Street surged ahead as President-elect Donald Trump prepared to take office, riding on a booming US economy. However, Nifty and other Indian indices struggled, signaling Dalal Street’s caution over Trump’s potential tariff policies.
Key Indices Performance:
- Nifty: -0.97% (Closed at 23,203)
- Sensex: -0.98% (Closed at 76,619)
Riddhi Siddhi Share Brokers’ Take: The market’s hesitation stems from global uncertainties and cautious domestic sentiment.
Market Headwinds: Why Nifty Stumbled
Three primary factors dragging the Indian markets:
- FII Exodus: Foreign Institutional Investors (FIIs) sold ₹46,576.20 crore worth of equities in January alone, making this the biggest headwind.
- Weak Rupee: The Indian Rupee hit an all-time low of ₹86.68, making Indian markets less attractive to foreign investors and raising inflationary concerns.
- Technical Weakness: Nifty ended well below its November 2024 low, with critical support at 23,000 and inter-month support near 21,281 (June 4th Election Day low).
Sectoral Insights by Riddhi Siddhi Share Brokers
Here’s how major sectors performed last week:
Bullish Sectors:
- Nifty Metal: +3.13%
- Nifty PSE: +2.87%
- Nifty Energy: +2.79%
Bearish Sectors:
- Nifty IT: -5.78%
- Nifty Realty: -2.50%
- Nifty FMCG: -2.31%
Riddhi Siddhi Share Brokers’ Strategy: Investors should focus on resilient sectors like metals and energy while staying cautious about IT and real estate in the near term.
Stock Highlights of the Week
Key Gainers:
- Hindalco: +7.41%
- NTPC: +5.81%
- HDFC Life: +5.51%
- Coal India: +5.20%
- Reliance Industries (RIL): +4.87%
Key Losers:
- HCL Tech: -10.34%
- Infosys: -7.70%
- Wipro: -6.19%
- M&M: -5.67%
- Trent: -5.58%
Riddhi Siddhi Share Brokers’ Stock-Specific Insights
- Life Insurance Stocks: HDFC Life surged 5.5% after strong Q3 earnings.
- Railway Stocks: IRFC (+7.7%), RVNL (+8.4%), and Ircon (+14.5%) rallied on expectations of an increased rail budget in FY26.
- Reliance Industries: Posted record profits, up 12% YoY, lifting its stock by 2.83%.
- Infosys: Fell 7.7% despite raising revenue growth guidance due to disappointing Q3 profits.
Expert View: Investors should focus on sectors with consistent performance, like insurance and infrastructure, while monitoring IT for a potential turnaround.
Global Market Highlights
- Dow Jones: +3.71%
- Nasdaq: +2.87%
- Bovespa: +1.28%
Commodity Snapshot:
- Crude Oil: +1.70% (Closed at $77.87)
- Gold: +1.10% (Closed at ₹2,715)
- Silver: -0.05% (Closed at ₹30.36)
Currency Update:
- USD/INR closed at ₹86.56 (+0.43%).
The Big Question for Dalal Street Investors
As FIIs continue their exodus, will Dalal Street see a reversal anytime soon? All eyes are now on Trump’s inauguration and the Union Budget 2025, which is expected to provide clarity and direction to the markets.
Bottom Line: Riddhi Siddhi Share Brokers’ Outlook
Despite global uncertainties, opportunities still exist for investors willing to navigate market volatility with a strategic approach. With the Union Budget around the corner and the possibility of a Federal Reserve rate cut, there’s cautious optimism for the weeks ahead.
Disclaimer by Riddhi Siddhi Share Brokers
Riddhi Siddhi Share Brokers reminds investors that all market investments carry risks. The views expressed in this analysis are for educational purposes and should not be considered financial advice. Always consult with a certified financial advisor before making investment decisions.