The Indian stock market witnessed a positive start on Tuesday, January 7, with major indices posting impressive gains. The S&P BSE SENSEX jumped 394 points, while the NIFTY50 surged past 23,750. While Titan saw a notable rise, Zomato took a hit, dropping more than 4%.
Early Market Overview
At 09:24 AM, the S&P BSE SENSEX stood at 78,359.38, up by 394.39 points or 0.51%. The NIFTY50 followed suit, trading at 23,751.65, gaining 135.60 points or 0.57%. With nearly all sectors in the green, the sentiment remained upbeat across the board.
On the NIFTY50 index, 43 of the 50 stocks were trading higher, while only six were in the red, and two stayed unchanged. This widespread optimism reflected in the broader market as well, with a significant portion of stocks pushing higher in early trade.
Sectoral Performance: Mixed but Mostly Positive
The overall market sentiment was buoyed by gains in sectors ranging from energy to consumer goods.
- ONGC topped the NIFTY50 gainers, up by 4.58%, as oil prices continued their upward trend globally.
- Titan also posted a solid rise of 1.63%, benefiting from strong demand in its jewelry segment.
- BPCL and Adani Enterprises gained 1.5% and 1.43%, respectively.
While most sectors enjoyed positive momentum, there were a few underperformers as well.
- Zomato, for instance, was the top loser on the SENSEX, falling over 4%. The company has faced mounting challenges in the competitive quick commerce space, impacting its share price significantly.
Top Gainers and Losers
Top Gainers:
- ONGC: +4.58%
- Titan Company: +1.63%
- Tata Consumer Products: +1.35%
- BPCL: +1.50%
- Adani Enterprises: +1.43%
Top Losers:
- Zomato: -4.19%
- Apollo Hospitals: -2.18%
- Bajaj Auto: -1.82%
- Hero MotoCorp: -1.42%
- Trent: -1.17%
The mixed bag of results further highlighted the contrasting performances across the various sectors, keeping investors on their toes.
Zomato Faces Pressure Amid Competitive Concerns
Zomato was under heavy selling pressure, slipping by as much as 4.89% during early trade, trading at ₹251.70. The primary concern for investors was the company’s growing competition in the quick commerce industry. Jefferies, a global brokerage firm, pointed out that 2025 could be a year of consolidation for Zomato after a stellar 2024, where the stock more than doubled in value.
Zomato’s quick commerce arm, Blinkit, faces stiff competition from well-established players like Swiggy’s Instamart and Zepto. Furthermore, giants such as Amazon are actively making inroads into the space, putting pressure on Zomato’s profitability.
According to analysts, Zomato’s aggressive pricing strategies in a market rife with competition may lead to higher discounting, negatively impacting its margins. The stock has been underperforming in recent sessions, and it remains to be seen if the company can maintain its growth trajectory in the face of these challenges.
BPCL Makes Moves with IPO Approval
In contrast to the underwhelming performance of Zomato, BPCL shares were among the top gainers, trading up by 1.5%. The stock’s jump came after BPCL’s board gave an in-principle approval for the initial public offering (IPO) of Maharashtra Natural Gas Limited (MNGL), a joint venture between BPCL, GAIL, and IGL.
The IPO, expected to raise over ₹1,000 crore, has been seen as a positive development for BPCL. The company has a 22.5% stake in MNGL, which has operations in the natural gas distribution sector. The IPO could provide BPCL with a significant cash infusion, strengthening its position in the market.
The approval is another step in BPCL’s ongoing efforts to streamline its operations and unlock value in its non-core businesses.
Institutional Selling and Market Sentiment
Despite the overall positive movement in the market, the actions of foreign institutional investors (FIIs) are worth noting. According to exchange data, FIIs offloaded equities worth ₹2,575.06 crore on Monday. This raised concerns about the potential for volatility in the short term, as FIIs play a crucial role in the liquidity of Indian equities.
However, the strong market gains on Tuesday indicate that domestic investors remain optimistic about the outlook for 2025. As such, analysts are divided on whether the recent institutional selling will create any lasting impact on the market’s upward momentum.
FII Activity: Selling Pressure?
- FIIs sold equities worth ₹2,575.06 crore on Monday.
- Concerns about short-term market volatility.
- Domestic investors remain bullish, for now, keeping the indices afloat.
Despite these headwinds, the overall market sentiment remains positive, and the broader market continues to perform well in the early days of 2025.
