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Indian stock market plunges over 1.5 percent amid virus outbreak fears

The Indian stock market faced a significant downturn on January 6, with both the Sensex and Nifty 50 indices dropping over 1.5% amid fears of a new virus outbreak in China. The Nifty 50 closed at 23,616 points, slipping below the crucial 24,000 level, while the broader market indices, including Nifty Smallcap 100 and Nifty Midcap 100, fell by 3.2% and 2.7%, respectively. Major sectoral indices suffered losses, particularly in PSU Bank, Metal, and Energy sectors, with ITC leading individual stock declines at 8.1%.

Indian Markets Recover Sharply as Sensex Gains 1000 Points Amid Volatility

India's benchmark indices, Sensex and Nifty, rebounded sharply on December 5, with the Sensex rising 1,000 points from its low, driven by gains in IT stocks and Reliance Industries. As of 12:20 pm, the Sensex was up 500 points to 81,450, while Nifty gained 133 points to 24,600. Titan led the gains, while NTPC was the top laggard. Sector performance showed Nifty IT as the top gainer, despite mixed market breadth.

quality stocks require earnings growth not just high valuations

Sunil Singhania, founder of Abakkus Asset Management, emphasized that investing in quality stocks at any price is flawed. He noted that while companies like Hindustan Unilever and Asian Paints have high P/E ratios, their growth rates are not sufficient to justify such valuations, as they lag behind the country's nominal GDP growth.

winners and laggards emerge from muted earnings season in second quarter

In the latest earnings season, Nifty-50 experienced its lowest growth in 17 quarters, with benchmark indices dropping nearly nine percent from their 52-week highs. Motilal Oswal identified ten "winners," including SBI, Sun Pharma, and M&M, which showed resilient performances despite the overall muted results. Conversely, Tata Motors and Asian Paints were highlighted as laggards following disappointing earnings.

Nifty and Sensex rise for third consecutive day on strong IT and realty gains

Nifty and Sensex continued their upward trend for the third consecutive day, buoyed by gains in IT, realty, and FMCG stocks. At 9:30 am, Sensex rose by 250.53 points to 80,360.38, while Nifty increased by 81.90 points to 24,303.80, reflecting positive sentiment following the NDA alliance's electoral success in Maharashtra. Analysts anticipate a focus on government spending as geopolitical risks remain a concern.

paint companies increase hiring to combat market challenges and competition

Indian paint companies are increasing their sales team hires to capture market share amid weak growth and fierce competition. Firms like Asian Paints and Berger Paints are investing 5-15% more in staffing to target smaller retail markets, responding to a slowdown that began in Q4FY24, exacerbated by rising crude prices and declining demand in the decorative segment, particularly in rural areas. Despite these efforts, companies continue to face challenges with moderate revenue and profit growth due to rising input costs and sluggish volumes.

Market sentiment sours as IT stocks drag indices lower for seventh session

Benchmark indices Nifty and Sensex continued their decline for the seventh consecutive session, with the Nifty dropping below 23,400 amid a significant downturn in IT stocks. Concerns over slower US interest rate cuts and rising import prices have shifted market sentiment from "buy the dip" to "sell on the rise." As of 10 am, the Sensex was down 390.49 points at 77,189.82, while 1,131 shares advanced and 2,132 shares declined.

Nifty reports single-digit earnings growth for second consecutive quarter

Nifty companies reported a 4% year-on-year profit growth in Q2, marking the second consecutive quarter of single-digit growth, driven by SBI, Hindalco, ONGC, ICICI Bank, and Axis Bank. However, underperformance from BPCL, JSW Steel, and others offset gains, with consumption and asset-quality stress in BFSI sectors noted as weak spots. FY25 earnings projections have been downgraded by 7%, with a mere 5% growth expected, the weakest since FY20.

asian paints faces challenges with weak performance and cautious outlook

Asian Paints reported a disappointing 2Q performance, with a 5% decline in consolidated revenue and a 0.5% drop in decorative volumes, attributed to weak industry demand and increased competition. Gross margins contracted significantly, and the near-term outlook remains bleak due to ongoing challenges. Motilal Oswal maintains a Neutral rating with a target price of Rs 2,650, emphasizing the need for industry recovery and strategic pricing adjustments.

Asian Paints reports Q2FY25 earnings miss maintains hold rating with target price

Asian Paints reported a Q2FY25 revenue of INR 80,275 million, down 5.3% YoY and 10.5% QoQ, missing estimates. EBITDA fell 26.8% YoY to INR 12,395 million, while Adj. PAT declined 27.4% YoY to INR 8,748 million, reflecting poor operating performance. KR Choksey has lowered FY25E/FY26E EPS estimates and maintains a target price of INR 2,566, advising a "HOLD" on the stock.
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