The Indian equity markets are poised for a cautious and potentially soft opening on Wednesday, January 7, taking cues from mixed trading patterns across Asian exchanges. Early signals from the GIFT Nifty futures indicated a muted start, with the index trading at 26,214.5, marking a decline of 67 points or 0.25% from the previous Nifty futures close.
Market Extends Losses Amid Profit-Booking
On Tuesday, January 6, the benchmark indices continued their downward trajectory for a second consecutive session. Despite generally positive global cues, domestic markets succumbed to profit-booking pressure. The Sensex plunged over 500 points, or more than 0.60%, hitting an intraday low of 84,900.10. Similarly, the Nifty 50 dropped 0.50% to touch 26,124.75 during the day.
Both indices managed to pare some of the steep losses by the closing bell. The Sensex finally settled at 85,063.34, down 376 points or 0.44%. The Nifty 50 ended the session at 26,178.70, lower by 72 points or 0.27%.
Stocks to Watch in Today's Trade
Against this backdrop of consolidation, several individual stocks are likely to see significant movement and attract investor attention based on recent corporate developments.
Titan Shines with Strong Q3 Update
Titan Company, part of the Tata Group, reported impressive business growth for the quarter ended December. The company posted a robust 40% year-on-year growth. Its international business skyrocketed by 79% YoY, while domestic operations grew by a healthy 38% compared to the same quarter last year. This strong Q3 business update is expected to draw significant investor interest on Dalal Street.
Biocon Expands Oncology Portfolio
Biocon announced that its subsidiary, Biocon Biologics, plans to launch three new oncology biosimilars. This strategic move aims to bolster its cancer treatment offerings. With these additions, Biocon Biologics will boast one of the industry's most comprehensive oncology portfolios, potentially strengthening its market position.
In other significant developments:
Tata Capital will see the expiry of its three-month shareholder lock-in period on Wednesday. This will make approximately 71.2 million shares, representing about 2% of its outstanding equity, eligible for trading.
Mahindra & Mahindra (M&M) has strengthened its electric vehicle lineup with the launch of the XUV 3XO EV, a feature-packed electric SUV designed for urban consumers.
Pidilite Industries' wholly-owned subsidiary, Pidilite Ventures, has divested its entire stake in Pepperfry. The shares were transferred to TCC Concept as part of a 100% share-swap arrangement, following TCC's acquisition of Pepperfry.
E-commerce player Meesho will also witness the conclusion of a one-month shareholder lock-in period. As per Nuvama Alternative & Quantitative Research, about 109.9 million shares, roughly 2% of its total equity, will become tradable.
Indian Energy Exchange (IEX) clarified that the Electricity Appellate Tribunal (APTEL) has not issued any order regarding market coupling by the Central Electricity Regulatory Commission (CERC). This statement comes despite its shares surging up to 13% recently.
Lodha Developers reported a 25% rise in sales bookings for the quarter ending December, reaching ₹5,620 crore. This growth was fueled by robust demand for its residential properties.
Godrej Consumer Products noted a steady recovery in domestic demand during the third quarter. The company expressed confidence in a consumption rebound, aided by easing inflation and reduced GST rates.
IRB Infrastructure Developers' subsidiary, IRB Infrastructure Trust, has been awarded a toll road project in Odisha by the National Highways Authority of India (NHAI).
Market Outlook and Investor Sentiment
The overall market sentiment appears cautious as investors weigh domestic profit-booking against global trends. The movement in key stocks like Titan and Biocon, driven by fundamental news, will be crucial in setting the tone for sector-specific performance. Traders are advised to monitor the lock-in expiries for Tata Capital and Meesho, as the influx of fresh shares could influence their stock prices. The clarification from IEX is also significant for investors in the power sector. As always, market participants should base their decisions on thorough research and consider consulting with a qualified investment advisor.
