It was indeed a volatile trading session for the Indian stock markets today.

Benchmark indices Sensex and Nifty opened higher, driven by gains in banking and IT stocks after US President Donald Trump stated that Indian Prime Minister Narendra Modi had offered to discuss tariff reductions, alleviating concerns over reciprocal duties.

The gains in Indian markets followed Asian stocks, following tariff delays.

At the closing bell, the BSE Sensex stood lower by 200 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 102 points (down 0.4%).

Britannia, ICICI Bank, and Nestle India were among the top gainers today.

Adani Ports, BEL, and Trent, on the other hand, were among the top losers today.

The BSE MidCap index ended sharply lower, down 2.6%, while the fall inthe  BSE SmallCap index was much bigger at 3.2%.

All sectoral indices ended on a negative note with stocks in the auto sector, power sector, and healthcare sector witnessing most of the selling.

Shares of SBI Cards, Anand Rayons, and Redington hit their respective 52-week highs today.

The rupee is trading at Rs 86.78 against the US dollar.

In commodity markets, gold prices are trading at Rs 86,250 per 10 grams today.

Gold closed with gains for the seventh week as trade war risks lifted demand.
 

Natco Pharma Shares Bleed

Natco Pharma share price fell 10% on Friday, extending a two-day slump to 28% after the company posted a sharp decline in third-quarter profit.

Yesterday, the stock crashed 20%. The Hyderabad-based pharma company reported a 37.7% year-on-year fall in consolidated net profit to Rs 1.3 bn for the quarter ended December 2024, hurt by a steep drop in formulations exports.

Revenue for the December quarter declined 37% year-over-year (YoY) to Rs 4.7 bn, primarily due to the absence of gRevlimid sales - a key generic drug - and sluggish demand in the India and Agrochem segments.

Even though challenges loom, the company remains well-capitalized, with a net cash position of Rs 30 bn, potentially enabling mergers and acquisitions that could drive future growth.

The company has also declared a third interim dividend of Rs 1.50 per share for FY25.
 

Deepak Nitrite Shares Crash

Shares of Deepak Nitrite tumbled 15% to their 52-week low on Friday after the chemical manufacturer reported a 51.5% year-on-year slump in net profit to Rs 980 million for the third quarter ended December.

This, compared to Rs 2.1 bn in the same quarter last year.

The decline in revenue this quarter was due to weak demand in the chemical sector, lower sales volumes, and pricing pressures across its product segments.

The company struggled to manage costs effectively amid weakening demand. Lower realisations and increased fixed expenses further eroded profitability.

The sharp sell-off reflects concerns over the company's declining profitability, margin pressure, and uncertain demand outlook. With persistent cost pressures and subdued growth in specialty chemicals, the near-term outlook for Deepak Nitrite remains uncertain.
 

What Next?

Deepak Nitrite is focusing on expansion and operational efficiency to drive future growth. The company is advancing multiple projects across different segments, ensuring long-term business sustainability.

The nitric acid project is in the final stages of pre-commissioning and is expected to be operational by the end of this quarter. This project will enhance backward integration, reducing dependency on external suppliers and improving cost efficiency.

The MIBK/MIBC project, which will strengthen the company's position in solvents, has completed all engineering and procurement work. The project is set to be commissioned in the first half of FY26.

Similarly, the acetophenone project is also expected to be operational within the same timeline. These additions will help the company expand its product portfolio and cater to a broader customer base.

Deepak Nitrite has also been investing in process improvements. During Q3, the company introduced four new products, with confirmed orders already in place. It is also implementing cost improvement and debottlenecking initiatives to enhance productivity and operational efficiency.

The research and development center at Savli, Vadodara, is progressing well, with 85% of the project completed as of January 2025.

The facility, with an estimated investment of Rs 1.1 bn, is scheduled for completion by March 2025. It will focus on specialty chemicals, life sciences, and application-based intermediates, strengthening the company's innovation capabilities.

Management remains cautiously optimistic about a profitability rebound from Q4 FY25 onwards. With new projects coming online and demand expected to normalise in key segments, the company anticipates improved financial performance in the upcoming quarters.

However, challenges such as elevated raw material costs, global oversupply issues, and demand fluctuations continue to pose risks.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Speaking of its stock performance, in the past five days, Deepak Nitrite share price has tumbled 16.4%. In the last month, it has slipped 17.1%.

In the last six months, its share price has crashed 31.9%. Additionally, in the last one year, its share price has fallen 14.6%.

The stock touched its 52-week high of Rs 3,168.6 on 1 August 2024 and a 52-week low of Rs 1,962.5 on 14 February 2025.

How Trump's Tariffs Could Redefine India's Export Market?

Now that Donald Trump has been inaugurated as the 47th US President, financial markets around the world will now turn their attention to his economic policies.

On his first day back in office, Trump did not make many big economic decisions bit some of his moves will have an effect on markets.

These include directing the US bureaucracy to focus on controlling cost of living (inflation), reviving the US energy sector (oil & gas), and withdrawing from the Paris Climate Treaty (renewable energy).

Having said that, Trump is just getting started. There will be a flood of decisions taken by not just him but his cabinet appointees as well, that will impact financial markets in various ways.

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