Today’s stock market: Domestic market benchmarks the Nifty 50 and Sensex closed lower on Saturday, January 20, with shares of Reliance Industries (RIL) and Hindustan Unilever (HUL) among the top losers after their December quarter earnings failed to please investors – Today’s stock market
HUL and RIL both announced their quarterly results after market hours on Friday.
RIL’s quarterly profit after tax (PAT) increased by 10.9% year on year (YoY) to ₹19,641 crore. The company’s gross revenue increased by 3.2% year on year to ₹2,48,160 crore, driven by continued development in consumer businesses.
In the quarter, EBITDA increased by 16.7% YoY to ₹44,678 crore, with a 210-bps increase in the EBITDA margin to 18%.
HUL reported a standalone net profit of ₹2,519 crore for the third quarter of FY24, up 0.55% from ₹2,505 crore in the same quarter last fiscal year. HUL’s Q3 net profit decreased by 7.28 percent from ₹2,717 crore in the previous quarter.
In Q3FY24, the company’s overall sales decreased by 0.38 percent to ₹14,928 crore from ₹14,986 crore in the previous year. Revenue decreased by 0.6 percent from ₹15,027 crore in the September 2023 quarter. The company reported a 2% underlying volume growth (UVG).
The Nifty 50 began at 21,706.15, compared to the previous close of 21,622.40, and reached an intraday high and low of 21,720.30 and 21,541.80, respectively. The index closed at 21,571.80, down 51 points, or 0.23%.
The Sensex opened at 72,008.30, compared to the previous close of 71,683.23, and reached an intraday high and low of 72,026.26 and 71,312.71, respectively. The 30-share pack closed 260 points, or 0.36 percent, lower at 71,423.65, with 23 stocks down.
TCS, HUL, RIL, Infosys, Mahindra Mahindra, ITC, and HCL Tech were the biggest drags on the Sensex index.
In contrast, midcaps and small-caps outperformed the benchmarks. The BSE Midcap index increased 0.46%, while the Smallcap index rose 0.41%.
Top gainers of the Nifty 50 index today.
The Nifty 50 index’s biggest gainers were Coal India (up 4.11%), Adani Ports (up 3.34%), and Kotak Mahindra Bank (up 2.59%).
Top laggards in the Nifty 50 index
HUL (-3.72%), TCS (-2.12%), and Mahindra & Mahindra (-1.91%) were the leading laggards in the Nifty 50 pack.
As many as 30 stocks in the Nifty 50 group closed lower, while the remaining 20 ended higher.
Today’s sectoral indexes
The Nifty FMCG index declined 1.17 percent, while the IT index dipped by one percent. The pharmaceutical and real estate indices fell by up to one percent.
However, Nifty PSU Bank posted a strong 1.86 percent increase. Nifty Bank gained 0.78 percent.
Expert perspectives on markets
“Over the weekend, US stocks rose on increased optimism about artificial intelligence. Domestic markets, on the other hand, showed a sluggish trend, owing to longer holidays, low volumes, and weekly option expiration. Profit booking was observed in IT and FMCG, while private banks saw selective purchasing following the recent strong correction and stable Q3 results. Next week’s interest rate announcements by the BoJ and ECB, as well as US GDP statistics, are expected to affect market dynamics,” said Vinod Nair, Head of Research at Geojit Financial Services.
Technical Perspectives on the Nifty 50
“The overall consolidation phase may last for the next few days, or until the Nifty remains between 21,500 and 21,700.” Only a clear breakout on either side could spark a directional shift. A major loss below 21,500 could cause a correction to 21,300 or lower. In contrast, a strong breakout above 21,700 is required for the uptrend to resume,” stated Rupak De, Senior Technical Analyst, at LKP Securities.
