Indices rise for 2nd day, Nifty above 24,200; Trent jumps 3.7%

The domestic equity indices closed marginally higher on Wednesday, extending gains for the second consecutive day. The benchmark Nifty index crossed the 24,200 mark amid cautious optimism.

Investor sentiment was largely driven by anticipation of the upcoming US Consumer Price Index (CPI) inflation data. This crucial economic indicator will offer valuable insights into the Federal Reserve's future monetary policy decisions.

Concerns persist regarding the Fed's ability to cut interest rates in the near future. High inflation, as highlighted in the Fed's December meeting, could constrain their ability to ease monetary policy.

The broader market sentiment, however, remains delicate. Uncertainties surrounding Q3 corporate earnings, the forthcoming Union Budget, and global factors, including the evolving US trade policies, continue to weigh on investor sentiment.

The S&P BSE Sensex added 224.45 points or 0.29% to 76,724.080. The Nifty 50 index rose 37.15 points or 0.16% to 23,213.20.

Trent (up 3.71%), Larsen & Toubro (up 1.22%) and Reliance Industries (up 1.11%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.11% and the S&P BSE Small-Cap index added 0.34%.

The market breadth was positive. On the BSE, 2,150 shares rose and 1,806 shares fell. A total of 108 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 1.37% to 15.26.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.39% to 6.924 as compared with the previous close of 6.942.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.4075, compared with its close of 86.5300 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement rose 0.63% to Rs 78,651.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.08% to 109.09.

The United States 10-year bond yield declined 0.33% to 4.772.

In the commodities market, Brent crude for March 2025 settlement rose 22 cents or 0.28% to $80.14 a barrel.

Global Markets:

The U.S. stock futures point to a positive open Monday, with the Dow Jones Industrial Average futures up 98 points.

European shares advanced on Wednesday as investors assessed UK inflation data. The United Kingdom (UK) Consumer Price Index (CPI) rose 2.5% YoY in December after increasing by 2.6% in November, the data released by the Office for National Statistics (ONS) showed. The annual core CPI (excluding volatile food and energy items) accelerated by 3.2% in the same period, compared to a 3.5% rise in November.

Most Asian stocks ended lower Wednesday following a subdued US trading session.

Meanwhile, impeached South Korean President Yoon Suk Yeol was arrested on Wednesday by authorities. This follows a failed attempt to impose military law in late 2024, as reported by local media. Yoon will now face trial on charges of insurrection after his unsuccessful attempt to implement martial law in December. This move was met with widespread opposition from citizens and policymakers, triggering nationwide protests and calls for his removal.

US indices exhibited mixed performance on Tuesday, with technology stocks continuing to struggle. The markets are also recovering from a weak start to the year, having declined from record highs in December. The S&P 500 rose 0.1% to 5,842.86 points on Tuesday, while the NASDAQ Composite fell 0.2% to 19,044.39 points. The Dow Jones Industrial Average rose 0.5% to 42,518.28 points.

The US Producer Price Index (PPI), a key indicator of consumer price inflation, came in at 0.2% on Tuesday, lower than expected. The PPI, which measures the change in the price of goods sold by manufacturers, remained unchanged compared to the previous reading.

Stocks in Spotlight:

Kalyan Jewellers India shares resumed their decline today, falling 7.02% to Rs 554.90. This follows a sharp 27.31% drop over the past seven trading sessions, culminating on Monday, 13 January 2025. The stock did see a slight recovery on 14 January, rebounding 4.22%. The stock has corrected almost 31% from its record high of Rs 794.60 hits on 2 January 2025.

Kalyan Jewellers on 14 January held a investors call to justify the falling share price. The company emphasized that its strong performance, including a 39% year-over-year growth in sales in Q3FY25 and an upward revision of its store expansion plans, does not reflect the current market sentiment. The company's board will consider Q3 results on 30 January 2025.

Network18 Media & Investments tumbled 7% after the company's consolidated net loss widened to Rs 1,435.45 crore in Q3 FY25 as compared to net loss of Rs 58.82 crore recorded in Q3 FY24. Revenue from operations fell 23.3% to Rs 1,360.50 crore in Q3 FY25 as against Rs 1,773.73 crore posted in Q3 FY24.

Adani Green Energy rose 2.72% after the company said that it has commissioned a 57.2 MW wind power plant in Gujarat, boosting its renewable energy capacity to 11.7 GW.

Benares Hotels surged 12.09% after the company's net profit jumped 20% to Rs 13.56 crore in Q3 FY25 as against Rs 11.30 crore posted in Q3 FY24. Revenue from operations rose 15.7% year on year (YoY) to Rs 38.87 crore in the quarter ended 31 December 2024.

NBCC (India) advanced 2.60% after the company announced that it has secured multiple work orders aggregating up to Rs 405.05 crore.

Sky Gold jumped 4.91% after the company announced that it has onboarded Aditya Birla Jewellery, which is operating under the brand name Indriya, as its new client.

J.Kumar Infraprojects added 1.55% after the civil construction company received letter of award (LoA) worth Rs 1,073.39 crore from NBCC (India).

Oriental Hotels rallied 3.46%. The company's consolidated net profit decreased 14.92% to Rs 14.36 crore in Q3 FY25 as against Rs 16.88 crore posted in Q3 FY24. Revenue from operations was at Rs 121.9 crore in Q3 FY25, registering a growth of 19.43% year on year.

JSW Energy added 2.34% after its wholly owned subsidiary, JSW Energy (Utkal), successfully synchronised unit-2 (350 MW) of the Utkal thermal power plant (formerly known as Ind-Barath) located at Jharsuguda, Odisha.

KPI Green Energy added 2.17% after its subsidiary, Sun Drops Energia, received letters of award (LoAs) for developing 62.20 MW solar projects under the captive power producer (CPP) segment.

IPO Update:

The initial public offer of Laxmi Dental received bids for 1,02,17,44,548 shares as against 89,70,371 shares on offer, according to stock exchange data at 16:57 IST on 15 January 2025. The issue was subscribed 113.90 times.

The issue opened for bidding on 13 January 2025, and it will close on 15 January 2025. The price band of the IPO is fixed between Rs 407 and Rs 428 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

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