After opening the day lower, Indian benchmark indices tanked further but recovered as the session progressed, eventually closing more than 400 points down.Benchmark equity indices lost their 3-day winning streak to end the week’s last trading session in negative territory.At the closing bell, the BSE Sensex closed lower by 423 points (down 0.6%).Meanwhile, the NSE Nifty closed 109 points lower (down 0.5%).Reliance Industries, BPCL and Nestle are among the top gainers today.Infosys, Axis Bank and M&M on the other hand, were among the top losers today.The GIFT Nifty was trading at 23,237, down by 151 points at the time of writing.The BSE MidCap index and BSE SmallCap index ended flat.Sectoral indices were trading mixed on Wednesday with stocks in the realty sector and the metal sector witnessing buying. Meanwhile, the stocks in the finance sector and IT sector witnessing selling pressure.The rupee is trading at 86.6 against the US$.Gold prices for the latest contract on MCX are trading 0.5% lower at Rs 78,810 per 10 grams.Meanwhile, silver prices were trading 1.2% lower at Rs 91,680 per 1 kg.
Why Chemical Stocks are RisingIn news from the chemical sector, shares of fertiliser and chemical stocks saw a significant surge on 17 January, with some rising nearly 10%, driven by a sharp increase in soda ash prices.Gujarat Heavy Chemicals’ stock saw a 7% jump, while Gujarat State Fertilizers and Chemicals, Rashtriya Chemicals and Fertilizers, and Fertilisers And Chemicals Travancore saw their shares skyrocket by up to 9%.Soda ash, a critical raw material used in industries like glass, detergents, and chemicals, plays a key role in driving the performance of chemical stocks.When soda ash prices rise, it can lead to higher revenues and profit margins for producers, thus boosting their stock prices.Over the past year, soda ash prices had dropped by more than 30%, but the tide turned in December 2024 when the government introduced a Minimum Import Price (MIP) for soda ash.The Directorate General of Foreign Trade changed the import policy for soda ash from ‘Free’ to ‘Restricted’ and set a minimum import price of Rs 20,108 per metric ton, which has been a catalyst for the recent surge in chemical stock prices.
Defence Stocks Trade Firm in Weak MarketMoving on to news from the defence sector, shares of defence companies are trading higher by up to 6% on the BSE during Friday’s intra-day session, bucking the overall weak market trend.This uptick is driven by expectations of a sharp increase in order flow during the January-March quarter, with defence capital expenditure (capex) set to be met in fiscal year 2025 (FY25).Recent approvals by the Defence Acquisition Council (DAC) have further strengthened optimism for the sector, underscoring the government’s emphasis on defence indigenisation, according to analysts.Shares of Bharat Dynamics (BDL), Cochin Shipyard, Hindustan Aeronautics, Garden Reach Shipbuilders & Engineers (GRSE), Data Patterns (India), Bharat Electronics (BEL), and Mazagon Dock Shipbuilders are up between 2% and 6%.Indigenisation remains a central theme in India’s defence strategy, with the domestic allocation of total defence capex expected to reach 75% in FY25BE, amounting to Rs 1.05 trillion, the highest ever recorded.This is an increase from 74% in FY24BE and 50% in FY20, reinforcing the focus on strengthening India’s indigenous defence capabilities.
Why Lemon Tree Hotels Share Price is RisingMoving on to news from hotel sector, the rise in Lemon Tree Hotels share price came after the company announced that it has signed a new property in Valsad, Gujarat.The property, which shall be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited, is expected to open in FY 2029.Lemon Tree Hotel, Valsad, Gujarat, will offer 46 well-appointed rooms, two dining options, a banquet hall, a meeting room, a swimming pool, a spa, and other public amenities.Lemon Tree Hotels is among India’s largest hotel chains, operating across various market segments from upscale to economy.Here’s how shares of company ahs performed in past 1 year.
Nifty IT Index Slips 3%Moving on to news from the IT sector, shares of information technology companies are facing pressure, with the Nifty IT index dropping by 3% on the National Stock Exchange (NSE) during Friday’s intra-day session.This decline follows more cautious outlooks from Infosys and LTIMindtree regarding the recovery in discretionary spending.Infosys is the biggest loser among IT stocks, falling 6% to Rs 1,816 in intra-day trade. LTIMindtree shares dropped 3.5% to Rs 5,770, while other IT stocks, including Wipro, Coforge, Persistent Systems, Tech Mahindra, HCL Technologies, and Mphasis, are down by around 1%.Both Infosys and LTIMindtree, which have a significant discretionary exposure, expressed concerns over the pace of recovery in this segment.In contrast to its peers, Infosys reported growth in its large deal pipeline, though short-cycle deals remained flat quarter-on-quarter (QoQ).
