Sensex Today Tanks 774 Points | 5 Reasons Why Indian Share Markets are Falling | Adani Group Stocks Among Top Losers

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After opening the day marginally lower, Indian share markets continued the downtrend and ended deep in red.

Benchmark indices fell to weekly low levels in volatile trading, ahead of the monthly expiry of derivatives and the Union budget 2023.

At the closing bell, the BSE Sensex stood lower by 773 points (down 1.3%).

Meanwhile, the NSE Nifty closed lower by 226 points (down 1.3%).

Maruti Suzuki, Hindalco, and HUL were among the top gainers today.

Adani Ports, SBI, and HDFC Bank on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,970, up by 78 points, at the time of writing.

Broader markets settled on a weak note. The BSE Midcap fell 1.5% while the BSE SmallCap index ended 0.9% lower.

Barring metal sector, all sectoral indices ended on a negative note with stocks in the banking sector, finance sector, telecom sector, and power sector witnessed heavy selling.

Shares of Jindal Stainless hit its 52-week highs today.

If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.

Asian share markets ended the day on positive note.

The Hang Seng and the Shanghai Composite index were closed for trading on Wednesday. The Nikkei edged 0.4% higher.

US stock futures are trading on a negative note. Dow futures are trading lower by 0.6% while Nasdaq futures are trading down by 1.3%.

The rupee is trading at 81.63 against the US$.

Gold prices for the latest contract on MCX are trading lower by 0.3% at Rs 56,815 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading down by 0.4% at Rs 68,263 per kg.

Here are five reasons why Indian share markets plunged today.

#1 FIIs slow down

Foreign investors (FIIs) sold Indian equities worth Rs 7.6 billion (bn) in yesterday's trading session. The total foreign outflows so far in January 2023 is now above Rs 170 bn, shows data available on NSDL.

#2 Selloff in Adani group stocks

Adani group stocks were the biggest movers in the stock market today. Most Adani group stocks witnessed a steep selloff.

The selloff came after Bloomberg reported a US activist firm Hindenburg Research LLC taking a short position on the group stocks. Reportedly, Hindenburg has accused Adani group of market manipulation and accounting fraud.

Following the news, Adani group stocks lost over Rs 460 bn and also dragged the overall mood on Dalal Street.

#3 Volatility ahead of F&O expiry

A part of the volatility today can also be attributed to the weekly and monthly derivative expiry today. F&O contracts expire on Thursday but tomorrow being a market holiday on account of Republic Day celebrations, the expiry day was preponed to Wednesday.

#4 Global cues

US and European stock futures fell on Wednesday while Asian stocks eked out small gains amid downbeat investor sentiment following mixed corporate earnings.

Wall Street indices were mixed at the end of a choppy session on Tuesday as investors digested an uneven set of results from US corporate giants including Verizon and 3M.

#5 Pre budget nervousness and Fed fear

Traders were cautious ahead of two big events in the coming week - Union Budget and Fed meeting outcome. Both events are coinciding on 1 February 2023.

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Sun Pharma Launches new injection in the US market

In news from the pharma sector, shares of Sun Pharma were in focus today.

The company on Wednesday launched its phenobarbital sodium injection, SEZABY, for the treatment of neonatal seizures in the US.

SEZABY is the first and only product approved by the US Food and Drug Administration (USFDA) for the treatment of neonatal seizures in term and preterm infants.

It is an exciting addition to the company's growing portfolio of speciality branded products in the US market.

Sun Pharma SEZABY got an 'orphan drug' designation from the USFDA. Orphan drug designation is granted to a medicine intended to treat a condition affecting fewer than 0.2 m people in the US.

It is one of the leading players in the chronic therapies segment in India.

In the past five years, the stock has gained 84.7%, and is a strong candidate among the 4 pharma stocks to watch out for potential multibagger returns.

Increasing demand for chronic conditions and ailments will be the growth driver for Sun Pharma in the future.

If you want to bank on specialty pharma story, Sun Pharma is your best bet.

Cipla Q3 results

Moving on, shares of Cipla fell 5% today.

The fall comes after Cipla missed street estimation on earnings front.

Indian pharmaceutical major Cipla posted a 6% YoY rise in consolidated revenue at Rs 58 bn, compared to Rs 54.8 bn logged in December 2021 quarter.

This rise was due to a sharp fall in input costs. Raw material costs dropped by 15% YoY to Rs 12.9 bn.

Consolidated profit came in 10% YoY higher Rs 8 bn. The company posted Rs 7.2 bn profit last year. Higher finance costs and a rise in the tax outgo weighed on the bottom line.

The revenue from operations of Cipla rose by nearly 4% YoY to Rs 55.8 bn as against Rs 53.7 bn yearly.

The earnings before interest, taxes, depreciation and amortization (EBITDA) grew 14.3% YoY to Rs 14.1 bn, against Rs 12.3 bn, while the margins expanded by 1.7% to 24.2%.

For the upcoming quarter, Cipla Eu, its wholly owned UK subsidiary, will invest Rs 1.3 bn (euro 15 m) for the acquisition of 9,939 shares in Germany's Ethris GmbH.

In India, Cipla is one of the largest pharmaceutical companies and the largest Indian exporter to emerging markets.

During the initial covid-19 phase, Remdesivir and Favipiravir were the two drugs which were high in demand.

The two direct beneficiaries were Cipla and Glenmark Pharma as they have a big presence in the market for the said drugs.

So it should come as no surprise as to why Cipla share price is rising. Individual stocks turned into multibaggers. But the boom did not last.

A key focus area for Cipla currently is its respiratory segment. Cipla has a huge respiratory portfolio.

Arvind Q3 profit slumps 9.3%

Moving on to news from the textile sector, shares of Arvind fell 1.8% today.

The fall was on the back of weak quarterly earning due to low demand.

India's textile manufacturer Arvind Ltd reported a 9.3% drop in quarterly profit today, hurt by weak demand for denim garments.

The Ahmedabad-based firm posted a net profit of Rs 841.2 m for December 2022 quarter, from Rs 927.7 m a year earlier.

Its quarterly revenue from operations fell 12.8% to Rs 19.8 bn from last year.

While demand and volumes of woven fabric remained steady during the quarter, denim continued to struggle due to lower demand and over-supply.

The company's revenue from the textiles segment, which contributes about 80% of the company's total revenue, fell 19.2% to Rs 15.5 bn in the quarter. Revenue from denim in the textiles segment fell by 44.8%.

This revenue was hit by demand for Indian textiles in international markets as consumers cut spending on clothing following a surge in inflation after the war in Ukraine.

To know what's moving the Indian stock markets, check out the most recent share market updates here.

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