NMDC, SAIL, NALCO, REC, NTPC shares witnessed buying as many Public Sector companies announced quarterly numbers. IREDA, NHPC and Coal India closed almost flat while trading volume in these counters was still strong. Indian market closed flat with NSE Nifty touching intraday high and low of 23,694 and 23,443 respectively. Among major gainers in today's session were Tata Steel, JSW Steel, ITC Hotels, Bharti Airtel and Trent. In major news, Trent has offloaded some stake in fashion brand Massimo Dutti to its Spanish partner.

BSE Sensex and Nifty ended slightly lower on Friday, with investor sentiment subdued despite the Reserve Bank of India's (RBI) 25 basis points rate cut, the first in nearly five years. The rate reduction, though widely anticipated, failed to boost optimism as markets were disappointed by the central bank’s neutral stance and the absence of further liquidity-boosting measures. Mixed corporate earnings and continued foreign institutional investor (FII) outflows further dampened market confidence, particularly in banking, oil & gas, FMCG, and power sectors.

Why Investors Were Disappointed by the Rate Cut

Markets reacted negatively to the lack of new liquidity measures and RBI's neutral outlook on monetary policy.

Devarsh Vakil, head of prime research at HDFC Securities, noted that the market was hoping for additional measures to enhance liquidity in the financial system.
According to Prashanth Tapse, senior vice president of research at Mehta Equities, profit-taking ensued as investor enthusiasm waned following subdued corporate earnings and relentless selling by FIIs.
Despite the rate cut, concerns about future growth projections and cautious market commentary kept investor sentiment muted.

NMDC Q3 Results: Profit Surges 27% with Higher Revenues

NMDC Ltd., India's leading iron ore producer, reported a strong rise in profit and revenue for the third quarter of FY 2024-25.

The company posted a 26.8% jump in net profit to Rs 1,882 crore, up from Rs 1,484 crore in the year-ago period.
Consolidated revenue increased to Rs 6,568 crore, driven by robust demand for iron ore amid stable production costs.
This positive performance bolsters NMDC’s outlook as a key player in India's mining sector, reflecting resilience in commodity markets despite broader market uncertainty.

REC Q3 Results: Strong Profit Growth and Strategic Expansion

State-owned REC Ltd. delivered an impressive 23% growth in net profit for the December quarter, underpinned by higher income from its core business operations.

Consolidated net profit rose to Rs 4,076.35 crore, compared to Rs 3,308.42 crore in the same quarter last year.
Total income surged to Rs 14,286.91 crore, a significant increase from Rs 12,071.54 crore in the year-ago period.
Expenses rose to Rs 9,105.94 crore, reflecting increased operational costs amid ongoing expansion efforts.
REC also approved the formation of a 50:50 joint venture between REC Power Development and Consultancy Ltd. and Mahagenco Renewable Energy Ltd. to develop renewable energy and other power projects.

NHPC Q3 Results: Profit Declines Despite Marginal Revenue Growth

NHPC Ltd., a major state-owned hydro power producer, reported a steep decline in profitability due to rising expenses.

Consolidated net profit fell by 47% to Rs 330.13 crore, compared to Rs 623.28 crore in the corresponding quarter last year.
Total expenses climbed to Rs 2,217.51 crore, up from Rs 1,733.01 crore in the previous year, putting pressure on margins.
Revenue increased slightly to Rs 2,616.89 crore, reflecting stable power generation capacity.
The board approved an interim dividend of Rs 1.40 per equity share, with February 13, 2025 set as the record date for determining shareholder eligibility.

Key Trends Impacting Indian Markets

Several macroeconomic and market-specific factors are contributing to the ongoing caution among investors.

Mixed corporate earnings: While companies like NMDC and REC have reported robust results, others such as NHPC have struggled with higher expenses.
Rate cut expectations: Although the RBI’s 25-bps rate cut was expected, the lack of additional measures to inject liquidity has left investors unimpressed.
FII outflows: Continued selling by foreign institutional investors remains a drag on the market, contributing to volatility in key indices.

For some of the PSU stocks, TopNews team has reviewed technical charts to offer better trading ideas for short term.

NMDC

Fibonacci Levels for NMDC:

- 23.6%: Rs 67.52
- 38.2%: Rs 72.08
- 50%: Rs 77.58
- 61.8%: Rs 83.08
- 76.4%: Rs 88.20

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SAIL

Fibonacci Levels for SAIL:

- 23.6%: Rs 121.94
- 38.2%: Rs 132.88
- 50%: Rs 137.51
- 61.8%: Rs 155.53
- 76.4%: Rs 165.90

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NALCO

Fibonacci Levels for NALCO:

- 23.6%: Rs 166.87
- 38.2%: Rs 188.20
- 50%: Rs 196.62
- 61.8%: Rs 225.67
- 76.4%: Rs 247.89

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REC

Fibonacci Levels:

- 23.6%: Rs 469.71
- 38.2%: Rs 511.77
- 50%: Rs 528.00
- 61.8%: Rs 603.84
- 76.4%: Rs 643.58

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NTPC

Fibonacci Levels:

- 23.6%: Rs 339.66
- 38.2%: Rs 366.27
- 50%: Rs 372.65
- 61.8%: Rs 408.83
- 76.4%: Rs 436.34

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IREDA

Fibonacci Levels for IREDA:

- 23.6%: Rs 172.87
- 38.2%: Rs 192.47
- 50%: Rs 215.52
- 61.8%: Rs 238.48
- 76.4%: Rs 277.13

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NHPC

Fibonacci Levels:

- 23.6%: Rs 83.89
- 38.2%: Rs 92.13
- 50%: Rs 95.28
- 61.8%: Rs 103.87
- 76.4%: Rs 113.10

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Coal India Stock Pricing Information

Fibonacci Levels:

- 23.6%: Rs 410.88
- 38.2%: Rs 443.67
- 50%: Rs 452.40
- 61.8%: Rs 493.77
- 76.4%: Rs 524.39

Market Recap: Sectoral Impact and Investor Sentiment

Sectors such as banking, oil & gas, FMCG, and power saw heightened selling pressure due to profit-taking and cautious sentiment.

Banking stocks were particularly affected by the neutral stance of the RBI, which failed to address short-term liquidity concerns.
Power and infrastructure companies like NHPC faced investor skepticism due to declining profitability despite rising revenues.
On the positive side, firms engaged in commodity production, such as NMDC, have benefited from stable global demand and improved operational efficiencies.