Indian Stock Market Set for Weak Opening Amid Global Market Downturn; Reliance and Infosys Q3 Results In Focus

Sensex and Nifty 50 likely to open lower tracking global cues, as Gift Nifty indicates a negative start. Reliance Industries and Infosys post robust Q3 numbers despite mixed market sentiments.

January 17, 2025: The Indian stock market is set for a lower opening on Friday, tracking weak global market cues and a subdued start indicated by Gift Nifty. Here’s a quick look at the key developments:

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Asian Markets:

Asian markets traded lower following Wall Street’s overnight weakness. Japan’s Nikkei 225 fell 0.21%, Topix dropped 0.48%, and South Korea’s Kospi remained flat. Hong Kong’s Hang Seng index also indicated a weaker opening.

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Gift Nifty Update:

Gift Nifty was trading at 23,322, a discount of nearly 55 points from the Nifty futures' previous close, signaling a negative start for domestic indices.

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Wall Street:

The US markets closed lower, with tech stocks dragging indices down. The Dow Jones Industrial Average fell 68.42 points (0.16%), the S&P 500 dropped 12.57 points (0.21%), and the Nasdaq Composite saw a steeper fall of 172.94 points (0.89%).

Key tech stocks such as Apple, Nvidia, and Tesla declined by 4.04%, 1.92%, and 3.36%, respectively. However, Morgan Stanley shares rallied 4.03%.

Reliance Q3 Results:

Reliance Industries reported a consolidated net profit of ₹18,540 crore for Q3 FY25, a 7.4% YoY growth. Revenue increased by 6.7% YoY to ₹2.40 lakh crore. Operationally, EBITDA grew by 8% to ₹43,789 crore, with an improved EBITDA margin of 18.3%. Growth was driven by higher refining margins and digital services.

Infosys Q3 Results:

Infosys posted a 4.6% rise in net profit for Q3 FY25 at ₹6,806 crore. Revenue grew 2% QoQ to ₹41,764 crore, with USD revenue at $4,939 million. EBIT margins improved by 20 bps to 21.3%. Infosys raised its FY25 revenue growth guidance to 4.5%-5%.

However, Infosys ADR fell 5.77% to $21.57 in the US market, indicating the stock may open lower in India.

US Fed’s Outlook:

Federal Reserve Governor Christopher Waller suggested that easing inflation could allow for earlier and faster rate cuts, which may influence global markets in the coming weeks.

US Economic Data:

Retail sales grew at a slower pace in December, rising 0.4% from November. Jobless claims also rose unexpectedly, with 217,000 applications filed last week, above the expected 210,000.

Oil Prices:

Crude oil prices rose for the fourth consecutive week. Brent crude gained 0.18% to $81.44 per barrel, while WTI crude futures were up 0.34% at $78.95.

Dollar Movement:

The US Dollar Index fell 0.05% to 108.97, while the greenback dropped 0.81% against the yen, its lowest since December.

Key Technical Levels:

Nifty remains below its 200-DMA at 23,963, with key support at 23,000. Market sentiment will hinge on upcoming catalysts, including the FOMC meeting and Delhi Assembly elections.

Conclusion:

Despite a three-day winning streak, the Indian markets may face pressure today due to global uncertainties and mixed corporate earnings. Reliance and Infosys results will likely dictate domestic sentiment, while traders will closely monitor global cues for further direction.