After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.

Benchmark equity indices BSE Sensex and NSE Nifty50 ended the week's last trading session in negative territory.

At the closing bell, the BSE Sensex stood lower by 784 points (down 0.9%).

Meanwhile, the NSE Nifty closed lower by 199 points (down 0.8%).

ONGC, HUL, and Titan were the top gainers today.

Wipro, Adani Ports, and ICICI Bank on the other hand were among the top losers today.

The GIFT Nifty ended at 24,056 down by 241 points.

The BSE Mid Cap ended 0.4% lower and the BSE Small Cap index ended flat.

Sectoral indices are trading mixed with stocks in the oil & gas sector, FMCG sector witnessing buying.

Meanwhile, stocks in the banking sector, finance sector, and IT sector witnessing selling pressure.

The rupee is trading at 85.77 against the US$.

Gold prices for the latest contract on MCX are trading marginally lower at Rs 77,630 per 10 grams.

Meanwhile, silver prices are trading 0.4% lower at Rs 89,529 per 1 kg.

Here are five reasons why Indian Markets are falling today

#1 Profit Booking in Heavyweights

Profit booking in select heavyweights, including HDFC Bank, ICICI Bank, Infosys and TCS, is the primary reason behind the downturn of the benchmark indices.

#2 Underlying Sentiment Remains Cautious

Investors are cautious ahead of Q3 earnings, while on the global front, they anticipate major policy shifts in the US administration after Donald Trump takes charge.

#3 Dollar at Two-Year High

The dollar was at a two-year high against a basket of currencies amid concerns that the US interest rates will stay higher for a longer period.

Significant gain in the dollar index is weighing on sentiment in emerging markets like India. A strong US dollar may accelerate foreign capital outflow from the Indian market.

#4 Sectoral Performance

Banking, financial, and IT sectors have significant weight in the benchmark index. when they fall, they drag the key indices down. On Friday, the Nifty IT index dropped almost 2%, while the Nifty Bank and Financial Services index dropped nearly 1%.

#5 Uncertainty over Earnings Recovery

After weak Q1 and Q2 earnings of Indian corporates, all eyes are on the December quarter (Q3) earnings. While experts expect earnings recovery, they hint that a decent recovery could be expected only from Q4.
 

Why Shiva Texyarn Share Price is Rising

In the news, Shiva Texyarn stock rose by 11.9% on 3 January following a significant order win from the Indian Air Force.

The total order value of this order is Rs 361.9 m (inclusive of all duties and taxes).

As per an exchange filing, the contract by the Dept of Military Affairs is for the supply of 16,000 pairs of NBC (Nuclear, Biological, and Chemical) Suits, Permeable MK V. The delivery of these specialized suits is scheduled to be completed between 3 January 2025, and 31 August 2025.

As per a statement by the company, this order is a testament to Shiva Texyarn's expertise in manufacturing protective gear and its ability to meet the stringent requirements of the Indian Armed Forces. The company confirmed that this order does not fall under related party transactions.
 

Afcons Infra Jumps 7%. Here's Why

Moving on to news from the engineering sector, Afcons Infra's share price jumped 7% intraday in Friday's trading after the infrastructure engineering and construction company informed the shareholders on bagging a mega DRDO order worth over Rs 10 bn.

The order worth Rs 10.8 bn will be executed in 3 years.

Afcons Infra shares were listed at Rs 426 per share against its offer price of Rs 463 apiece, a discount of 7.9% on 4 November. The stock is up 33.8% from its listing price of Rs 426.

Wockhardt Shares Rally 5%

Moving on, shares of Wockhardt are trading higher by 5% on 3 January after the Indian drug regulator approved oral antibiotics for the treatment of Pneumonia.

Central Drugs Standard Control Organization (CDSCO) approved the antibiotic Nafithromycin, sold under the Miqnaf brand, as a new treatment for community-acquired bacterial Pneumonia (CABP) in adults.

The treatment also includes Pneumonia caused by multi-drug resistant (MDR) pathogens. Wockhardt's Miqnaf is an ultra-short course, once a day, for a three-day treatment.

With the approval coming through, Wockhardt said it plans to launch Miqnaf in the Indian market in the coming few months.

Antibiotic resistance is a very significant issue in India, including in cases of community pneumonia (CABP).

One of the features of Miqnaf, Wockhardt said, is its coverage of entire community respiratory pathogens, which makes it a promising monotherapy option for CABP. Wockhardt said for Miqnaf has undergone extensive non-clinical and clinical studies for more than 15 years, including human trials in the US, Europe, South Africa, and India.

Wockhardt claims current oral antibiotics such as azithromycin 'face significant resistance challenges', and amoxicillin lacks the coverage of atypicals, leading patients to often need hospitalization and intravenous treatment.

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