Market Wrap: Sensex Dips 42 Pts, Nifty Holds Above 26,150 as IT Stocks Retreat
The Indian stock market concluded a turbulent session on Tuesday, with the Sensex and Nifty ending largely flat as a pullback in IT shares interrupted a two-day rally. This fluctuations in the market were compounded by a trend of net selling from foreign investors, leaving traders searching for fresh catalysts as the year draws to a close.
Key Market Highlights
– Sensex Performance: The Sensex slipped by 42 points, or 0.05%, closing at 85,524.84.
– Nifty Performance: The Nifty 50 managed a slight gain of 5 points, or 0.02%, finishing at 26,177.15.
Sector Performance
– Decliners: Major contributors to the Sensex decline included:
– Infosys: -1.5%
– Bharti Airtel: -1.5%
– Adani Ports: -1.4%
– Sun Pharma: -1.2%
– Tech Mahindra: -1.0%
– Advancers: Positives included:
– ITC: +1.3%
– UltraTech Cement: +1.2%
– Tata Steel: +1.4%
– HDFC Bank: +1.1%
– NTPC: +1.0%
– Broader Markets: Small-cap stocks rose by 0.4%, while mid-cap shares remained largely unchanged. The IT sector retreated by 0.8%, following a robust 3.7% increase in the preceding four sessions. This sector’s recent performance was bolstered by a weaker rupee and expectations of a U.S. interest rate cut by 2026, providing potential boosts to sentiment and client spending for export-driven firms.
Expert Insights
Vinod Nair, Head of Research at Geojit Investments, remarked on the narrow market range, emphasizing the ongoing selling pressure across various sectors, although financials and FMCG provided some support. He stated, Investors are positioning themselves for the upcoming earnings season while closely monitoring shifting Fed policy expectations, as the probabilities of a rate cut in January gradually increase. While underlying domestic demand remains positive, uncertainties in global trade negotiations and the volatility of the rupee will continue to affect market sentiment.
Global Market Overview
– World Markets: Stocks across the globe traded near record levels on Tuesday, with European shares climbing and U.S. stock futures stable as the focus shifted to forthcoming U.S. economic data. The MSCI world index ascended by 0.2%, while Asia-Pacific stocks excluding Japan saw a 0.4% rise. Japan’s Nikkei ended flat.
– Gold Prices: Gold reached a new high, nearing $4,500 per ounce, driven by safe-haven demand as geopolitical tensions rise due to U.S. actions regarding Venezuelan oil shipments.
Crude Oil Insights
Oil prices remained steady, influenced by mixed signals, including potential U.S. sales of seized Venezuelan crude balanced against new supply risks from Ukrainian attacks on Russian vessels. As of 0959 GMT, Brent crude futures rose 7 cents to $62.14 per barrel, while U.S. West Texas Intermediate crude edged up 4 cents to $58.05.
Currency Update
The Indian rupee experienced a slight increase, strengthening by 3 paise to close at 89.65 per dollar. This movement was aided by a general weakness in the U.S. dollar, which decreased by 0.34% to a dollar index of 97.95.
In summary, the Indian markets faced a dip in the Sensex and a marginal rise in Nifty, primarily responding to the fluctuations in IT stocks. The market participants remain alert, as external economic factors and domestic demand dynamics unfold.