Stock Markets End Lower After Crossing 86K, Sensex Ends At 85,641, Nifty Tests 26,200
However, during the mid-day the stock market pared its gains after scaling record highs.
The stock market ended lower as the Sensex fell 64 points to end at 85,641, Nifty declined 27 points to close trade at 26,175.
In the 30-share BSE Sensex, TMPV, Maruti, Bharat Electronics, Kotak Bank and HCL Tech were among the stocks which were the top gainers. Meanwhile, the laggards included Reliance, TCS, Hindustan Unilever, Asian Paints and Axis Bank.
In the broader markets, the Nifty Smallcap 50 gained 0.45 per cent and the Nifty Microcap 250 fell 0.18 per cent. Sectorally, Nifty auto jumped 0.79 per cent and the Nifty Healthcare index tumbled 0.97 per cent.
During early morning trade, the BSE Sensex crossed 86,000 and started the session on a robust note, rising more than 300 points, while the NSE Nifty50 rang the opening bell around 26,300, jumping 82 points.
However, during the mid-day the stock market pared its gains after scaling record highs.
By 12:30 PM, the Sensex tumbled 600 points from the day's high to 85,556.
Markets Retreat After Early Record Highs
Equity benchmarks surrendered their morning gains on Monday after touching fresh record levels, with sentiment turning cautious as hopes of an imminent RBI rate cut receded. According to market experts, the stronger-than-expected Q2 GDP print and a weakening rupee weighed on expectations of a December policy easing, prompting a correction at higher levels. Softer GST collections and profit-taking also contributed to the pullback.
Rate-Cut Hopes Fade After Robust GDP Data
Vinod Nair, Head of Research at Geojit Financial Services, noted that the market shifted into a range-bound phase after initial gains. He said expectations of an RBI rate cut faded following the upbeat Q2 GDP growth figures, alongside a sharp depreciation of the rupee. He added that sentiment turned slightly cautious amid muted GST collections in November, impacted by lower tax rates.
Profit-Booking and Global Cues Trigger Pullback
Vikram Kasat, Head Advisory at PL Capital, observed that equities reversed sharply from their record highs as traders booked profits. Weak global cues and a guarded outlook on interest rates further dampened sentiment during the latter half of the session.
Manufacturing Growth Slows in November
A separate report indicated that India’s manufacturing sector lost some momentum in November. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 56.6 from 59.2 in October, marking the slowest improvement in operating conditions since February. The moderation was attributed to softer rises in sales and output, with some firms citing challenging market conditions.
GST Revenues See Marginal Growth
Government data released on Monday showed gross GST collections rising by 0.7 per cent in November to Rs 1.70 lakh crore. The slower pace of growth was driven by a decline in domestic revenue during the month.
Mixed Global Market Trend
Across Asia, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index closed higher, while South Korea’s Kospi and Japan’s Nikkei 225 ended in the red. European markets were trading lower in early deals. On Wall Street, US markets finished Friday’s session on a positive note.
FII Outflows Continue
Exchange data showed that Foreign Institutional Investors (FIIs) sold equities worth Rs 3,795.72 crore on Friday, while Domestic Institutional Investors (DIIs) remained net buyers, purchasing shares valued at Rs 4,148.48 crore.
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