Closing bell: Sensex sinks 824 points, nifty below 22,850; Swiggy declines 9%, BSE 7%

Sensex today | Live Stock Market Updates: Indian benchmark indices posted losses for the third straight week on Friday, as foreign portfolio investors (FPIs) sold Indian stocks and bonds worth $8.23 billion in January.

In stocks alone, FPIs withdrew $7.44 billion, marking the highest outflows since October 2024, when benchmarks fell by about 6%, their steepest decline since March 2020.

Ahead of the Union Budget, attention shifts to the Federal Reserve’s rate decision on Wednesday, with rates expected to be unchanged. Investors are monitoring the Fed’s commentary, especially after Trump’s call for lower borrowing costs, to gauge the future direction of interest rates.

Trade highlights:

• DLF shares rally 5% after strong Q3 performance

DLF shares gained attention on Monday, January 27, climbing 5% to an intraday high of $731.40 on Alburn. The increase followed the company’s strong third-quarter results, which reported a 61% year-on-year (YOY) rise in consolidated net profit to Rs 1,059 crore, up from Rs 657 crore in the same quarter last year.

• Yes, Bank Shares Jump 3% After Q3 PAT Jumps 164% to Rs 612 Crore

Yes Bank shares rose 3.3% to a one-day high of $18.86 on the BSE position today, following the release of Q3 FY25 results. The bank reported an impressive 164.5% increase in profit year-on-year (YOY) after tax (PAT), at Rs 612.27 crore.

• Q3 results today: Coal India, Tata Steel among 78 companies to announce earnings on Monday

Third-quarter earnings season is in full swing, with 78 companies set to announce their results on Monday. Notable companies to watch include Coal India, Tata Steel, Indian Oil, Bajaj Housing Finance, and Adani Total Gas.

Why did the stock market fall today?

US President Donald Trump recently announced plans to impose 25% tariffs and sanctions on Colombia after its president was denied entry to two US military planes carrying deported migrants. Trump stated that the tariffs would take effect “immediately” on all Colombian goods, with the rate rising to 50% in one week. However, the tariffs were canceled after Colombia agreed to accept deported migrants without restrictions. Concerns over policy uncertainty, especially with potential tariffs on Canada and Mexico set for February 1, have increased pressure on global markets.

Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, commented: “A big concern is that President Trump is introducing new threats, such as the 25% tariff on Colombia for refusing to accept illegal immigrants. Potential tariffs on Canada and Mexico are affecting the markets.” “.

• Nervousness ahead of Fed rate decision

Investor attention is focused on the US Federal Reserve’s next rate decision, scheduled for Wednesday. While the expectation is that the Fed will keep rates unchanged, investors are closely watching to comment on evidence about future interest rate hikes. Concern is heightened by President Trump’s calls for lower borrowing costs, leaving the market uncertain about the direction of interest rates.
Earnings season started on a weak note, with Bloomberg consensus estimates forecasting just 3% year-on-year growth in earnings per share (EPS) for NIFTY50 companies in the third quarter. While sectors such as capital goods, healthcare and telecommunications are expected to show strong double-digit profit after tax (PAT) growth, industries such as metals, chemicals, consumer goods, banking and oil and gas are likely to be higher.
Ongoing selling by foreign institutional investors (FIIs) continues to weigh on the market. As of January 24, 2025, FIIS has sold shares worth Rs 64,156 crore, showing no signs of easing the selling trend.
Concerns about potential additional tariffs on major US trading partners, including China, Mexico and Canada, have caused unease in global markets. However, Nomura strategist Naka Matsuzawa believes the dollar’s strength, driven by tariff concerns, will be short-lived.