After opening the day steady, Indian benchmark indices pared gains and slipped into red, only to bounce back stronger.Equity benchmark indices witnessed a roller-coaster ride in intra-day deals on Wednesday.At the closing bell, the BSE Sensex stood higher by 567 points (up 0.8%).Meanwhile, the NSE Nifty closed higher by 130 points (up 0.6%).TCS, Infosys, and Wipro are among the top gainers today.Trent, Tata Motors, and Axis Bank on the other hand were among the top losers today.The GIFT Nifty was trading at 23,202 up by 85 points at the time of writing.The BSE MidCap index ended 1.2% lower and the BSE SmallCap index ended 1.6% lower.Sectoral indices were trading mixed with stocks in the finance sector and IT sector witnessing the most buying speed. Meanwhile, stocks in the realty sector and power sector witnessed selling pressure.The rupee is trading at 86.32 against the US$.Gold prices for the latest contract on MCX are trading 0.4% higher at Rs 79,510 per 10 grams.Meanwhile, silver prices were trading 0.3% higher at Rs 92,333 per 1 kg.Here are the three key factors that drive the market’s momentum.#1 HDFC Q3 ResultsBenchmark indices Nifty and Sensex surged, buoyed by HDFC Bank’s steady third-quarter earnings, which helped lift market sentiment. HDFC Bank shares gained over 1 percent in the afternoon after it reported a 2.2 % year-on-year increase in net profit for Q3, reaching Rs 167.4 bn.#2 Sectoral GainsThe market saw a sectoral divergence as IT emerged as one of the best performers, supported by strong Q3 results and insulation from Trump’s protectionist tariff policies. Infosys, TCS, HCL Tech, Tech Mahindra, and Wipro led the gains.Further, pharma shares garnered momentum to trade 0.5 percent higher.#3 Falling Oil PricesOil held losses as President Donald Trump threatened a tariff on China, raising concerns over trade wars on several fronts after he said hefty levies on Canada and Mexico were being considered.West Texas Intermediate traded below US$ 76 a barrel following a run of declines since Thursday, while Brent closed near US$ 79.
HDFC Bank Q3 ResultsIndia’s largest private sector lender, HDFC Bank, announced its financial results for the third quarter of FY25, reporting a 2.2% year-on-year increase in standalone net profit to Rs 167.36 billion (bn).The bank’s net interest income (NII), a critical indicator of its earnings, grew by 8% YoY to Rs 306.0 bn during the quarter, meeting market expectations. This steady growth in HDFC Bank’s core earnings-both NII and net profit- occurred despite an uptick in non-performing assets (NPAs) and NPA ratios.The stock market reacted positively despite concerns over rising NPAs. HDFC Bank’s share price recovered from intraday lows to end firmly in the green, supporting the benchmark indices. Following the Q3 results, the bank’s stock traded up by 1.3% at Rs 1,664 on the NSE.However, the quarter did bring some challenges on the asset quality front. Gross non-performing assets (GNPA) rose to Rs 360.19 billion as of December 31, 2024, marking a 16% increase from Rs 310.12 bn a year ago. As a result, the GNPA ratio widened by 18 basis points, reaching 1.42% compared to 1.26% in the same period last year.Here’s how the shares of the company have performed in the past 1 month.
India Cements Share Crash 13%Moving on to news from the cement space, shares of India Cements plunged 13% to Rs 303 per share on 22 January, weighed down by disappointing December quarter (Q3FY25) results that highlighted the company’s deepening financial woes.The cement manufacturer’s net loss ballooned multi-fold YoY to Rs 4.3 bn in Q3FY25, compared to a modest Rs 160 m loss in the same quarter last year.Adding to the financial strain was an exceptional loss of Rs 1.9 bn in the quarter ended 31 December 2024.Revenue from operations also witnessed a steep 16.5% year-on-year decline, falling to Rs 9 bn from Rs 10.8 bn in Q3FY24, reflecting weaker demand and pricing pressures in a challenging macroeconomic environment.At the operating level, the situation was even grimmer. India Cements posted an EBITDA loss of Rs 1.9 bn in Q3FY25, a stark reversal from the EBITDA profit of Rs 490 m reported in the corresponding quarter of the previous year.This erosion in profitability highlights escalating costs and subdued operational efficiency.Realty Stocks DragThe Nifty Realty index dropped nearly 5%, primarily dragged down by declines in Macrotech Developers, DLF, and Oberoi Realty stocks, which fell by 3-6%.By around 12:20 PM, all 10 constituents of the index had decreased by 2-7%, with Oberoi Realty, Prestige Estates, and Macrotech Developers experiencing the most significant losses.Macrotech Developers and DLF have posted negative weekly returns for the past four weeks. Meanwhile, Oberoi Realty, which delivered positive returns from September 2024 to December 2024, has seen a sharp decline of over 24% in January 2025.Shares of Oberoi Realty fell nearly 8% on January 21 after the company reported Q3 FY25 results that missed market expectations.
