India's equity markets experienced a modest decline on Friday as investors adopted a cautious stance ahead of the weekend, with thin year-end holiday trading volumes contributing to the subdued market activity. The benchmark indices closed lower by approximately 0.4%, reflecting investor hesitancy amid global uncertainties and lack of fresh market triggers.

Market Performance Overview

The key market indices showed synchronized weakness during Friday's trading session:

Despite the daily decline, both benchmark indices managed to close up to 0.3% higher for the shortened trading week, indicating resilience in the face of global market uncertainties.

Sectoral and Broader Market Movements

Sectoral indices displayed mixed performance with technology stocks leading the decline. The Nifty IT index dropped 1.0%, while the Nifty Auto index moved 0.5% lower and Bank Nifty declined 0.3%. Large-cap stocks underperformed mid- and small-cap counterparts, though selective strength persisted in metals and consumer durable stocks.

Market breadth on the BSE showed more declining stocks than advancing ones:

Most Active Stocks and Trading Activity

Several stocks witnessed significant trading activity during Friday's session:

In volume terms, Vodafone Idea led with 51.69 crore traded shares, followed by IRFC with 16.39 crore shares and RVNL with 10.29 crore shares. Over 112 stocks hit their 52-week highs, while 120 stocks slipped to their 52-week lows, with Hindustan Copper and Titan among those reaching new highs.

Precious Metals Rally

While equity markets struggled, precious metals provided a contrasting performance with both gold and silver reaching all-time highs. Gold prices rose approximately 1.3% during Friday's session, while silver prices gained 1.4% and hovered around $75 per ounce, extending their record-breaking rally.

Global Market Context

Trading remained sparse across global markets due to year-end holidays, with various Asia-Pacific markets including Australia, New Zealand, and Hong Kong, along with most European markets, remaining closed. U.S. stocks hovered near record levels in thin post-Christmas trading, with the Dow slipping 0.16% to 48,651.67, while the S&P 500 edged down marginally to 6,931.47.

Institutional Investment Flows

Foreign and domestic institutional investors showed contrasting behavior during Friday's session:

Foreign portfolio investors continued their selling streak, while their domestic counterparts provided support. The continued FII outflows weighed on the Indian rupee and market sentiment.

Technical Analysis and Market Outlook

According to technical analysts, the Nifty continues to remain weak as the index has slipped below the 21 EMA on the hourly chart, indicating a rise in bearish bets. The RSI is in a bearish crossover and trending lower, reflecting weakening momentum. During the session, the Nifty found support near the 26,000 level, where the 21 EMA is currently placed.

Market experts expect the trend may improve and retrace towards 26,200 and higher, provided 26,000 holds decisively. However, a sustained move below 26,000 could trigger further weakness in the market. The optimism around the Santa Claus rally has diminished amid the absence of fresh catalysts and continued foreign outflows.

Dalal Street Investments has announced a significant turnaround in its financial performance for the second quarter. The company reported a net profit of Rs 28.37 lakh for Q2, marking a substantial improvement from the loss of Rs 24.09 lakh in the previous quarter.

Financial Highlights

The company's financial results for Q2 and H1 are as follows:

Key Observations

1. Revenue Growth: The company's revenue from operations in Q2 stood at Rs 45.51 lakh, compared to nil revenue in the previous quarter. This represents a significant improvement in the company's core business activities.

2. Profitability: Dalal Street Investments has shown a remarkable turnaround in profitability. The net profit of Rs 28.37 lakh in Q2 contrasts sharply with the loss of Rs 24.09 lakh in Q1.

3. Expense Management: Total expenses decreased from Rs 35.35 lakh in Q1 to Rs 22.42 lakh in Q2, indicating improved cost management.

4. Half-Yearly Performance: For the first half, the company reported a modest net profit of Rs 4.28 lakh, compared to Rs 42.56 lakh in the same period of the previous year.

5. Earnings Per Share: The basic and diluted EPS for Q2 stood at Rs 9.01, a significant improvement from the negative EPS of Rs 7.65 in the previous quarter.

Board Approval and Compliance

The unaudited financial results for Q2 and H1 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on November 10. The statutory auditors have performed a Limited Review of the financial results in accordance with SEBI regulations.

Trading Window

In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in the company's securities will open 48 hours after the announcement of the results.

The financial results are available on the company's website and on the BSE Limited website.