Market views: Indian benchmark indices continued to fall for the fourth consecutive session on January 13. There was selling in all sectors in this decline. Crude oil prices hit a 3-month high and global markets remained weak. Investors’ expectations of a cut in US interest rates in 2025 have diminished. Its effect was visible on the market today. At the end of the trading session, Sensex closed at 76,330.01 with a fall of 1,048.90 points or 1.36 percent and Nifty closed at 23,085.95 with a fall of 345.55 points or 1.47 percent. In today’s fall, investors’ wealth worth Rs 12.39 lakh crore was wiped out. The market cap of companies listed on BSE declined to Rs 417.28 lakh crore from Rs 429.67 lakh crore in the previous session.
Prashant Tapse of Mehta Equities It is said that the rupee hit a new low against the dollar due to the US ban on Russian oil exports, which led to a huge fall in the domestic stock markets. With the increasing weakness of the rupee, foreign investors are moving away from the local stock market. Widespread selling across sectors as well as heavy selling in mid- and small-cap stocks further soured the sentiment. Rising crude oil prices will increase concerns about a surge in domestic inflation, which may further delay interest rate cuts by the RBI in the near to medium term.
Vinod Nair of Geojit Financial Services It is said that heavy selling was seen in the global market. Due to which similar reaction was seen in the domestic markets also. Strong US payroll data suggests fewer interest rate cuts in 2025. This has caused the dollar to strengthen, bond yields to rise and emerging markets to become less attractive. Recently, weakness in earnings amid decline in GDP and high valuations has caused huge damage to market sentiment. Volatility may persist in the near term. Budget 2025, third quarter results, RBI policy and Trump’s policies will play an important role in deciding the direction of the market in the short term.
Rupak De of LKP Securities It is said that with Nifty breaking all the important levels, bears dominated the market. On the daily chart, Nifty has slipped below its previous swing low which is a sign of increasing bearishness. However, it has preserved the level of 23000 which is an important level. If Nifty remains above 23,000 in the next few days, there may be a recovery. Conversely, a decisive drop below this level could trigger a deep correction.
Dollar vs Rupee: Rupee fell by 61 paise and closed at Rs 86.61 per dollar, know how it may move further.
Ajit Mishra of Religare Broking It says that Nifty has fallen below the November 2024 low of 23,263.15, and there has also been a huge increase in the volatility index. This is indicating the risk of further decline. The major support for Nifty is at the level of 22,700. However, there may be a temporary pause in the downtrend due to oversold positions in select heavyweight stocks. In such a situation, traders are advised to maintain the “sell on bounce” approach while giving priority to risk management. Talking about different sectors, IT, FMCG and select pharma stocks are relatively stable, while other sectors are under a lot of pressure. Keeping these things in mind, traders should decide their positions.
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