Share Markets End On Weak Note, Sensex Over 85,500, Nifty Almost Flat
Market participants highlighted two factors likely to influence near-term market direction: positive domestic macroeconomic indicators and the revival of the AI trade globally.
The Indian stock market witnessed a muted session on Tuesday. The BSE Sensex settled the session near 85,500, declining almost 50 points, while the NSE Nifty50 ended trading at 26,177, inching up 5 points.
On the 30-share Sensex, ITC, UltraTech Cement, Tata Steel, HDFC Bank, and NTPC emerged among the gainers. Meanwhile, the laggards included Infosys, Tech M, Bharti Airtel, Adani Ports, and Sun Pharma.
In the broader markets, the Nifty Smallcap250 index climbed 0.42 per cent. Sectorally, the IT index stood out in red and bled 0.80 per cent. On the other hand, the Financial Services Ex-Bank index surged 0.80 per cent.
Earnings Season and Fed Policy in Focus
Market participants are now turning their attention to the upcoming earnings season while closely tracking signals from the US Federal Reserve. Expectations around a possible rate cut are gradually firming up, particularly for the January policy meeting, said Vinod Nair, Head of Research at Geojit Investments Limited.
Commenting on the day’s trade, Ajit Mishra, Senior Vice President, Research at Religare Broking Ltd, said markets remained subdued on the weekly derivatives expiry and finished almost unchanged, pausing after the recent rebound.
Ponmudi R, CEO of Enrich Money, noted that equity markets closed flat as profit-booking emerged at higher levels in the absence of fresh positive triggers, weighing on overall sentiment.
Global Markets
Asian markets offered mixed signals. South Korea’s Kospi, Japan’s Nikkei 225 and China’s SSE Composite index closed in positive territory, while Hong Kong’s Hang Seng index ended lower. European markets were also trading mixed during the session.
Overnight, Wall Street ended higher on Monday, providing limited support to global risk sentiment.
FII Selling And Oil Prices
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 457.34 crore, according to exchange data. Domestic Institutional Investors (DIIs), however, continued to lend support to the market, purchasing shares worth Rs 4,058.22 crore.
In the commodities market, Brent crude, the global oil benchmark, inched up 0.10 per cent to USD 62.13 per barrel.
Both benchmarks slipped into the red this morning as losses in information technology stocks weighed on sentiment. The weakness followed a revival in artificial intelligence-linked stocks on Wall Street, which triggered profit-taking in domestic IT counters.
At around 9.30 AM, the Sensex was down 159 points at 85,407, while the Nifty slipped 32 points to 26,139.
Key Near-Term Drivers in Focus
Market participants highlighted two factors likely to influence near-term market direction: positive domestic macroeconomic indicators and the revival of the AI trade globally.
According to analysts, favourable macro fundamentals could encourage bulls to attempt fresh record highs on the Sensex and Nifty. However, the resurgence of AI-driven trades overseas could act as a mild external headwind, potentially delaying the expected reversal in foreign institutional investor flows.
Defence stocks were seen staging a recovery, with analysts suggesting that the segment still offers room for further upside. The IT sector, despite Tuesday’s weakness, has also shown signs of resilience in recent sessions, they added.
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