Stock Market Today: Sensex Down 390 Points, Nifty Trade Below 23,700

Stock Market Today: Reliance Industries, Bajaj Finserv, Axis Bank, Kotak Mahindra Bank and M&M were the top gainers on the Nifty. Laggards included Zomato, Adani Ports, Titan, Infosys and Tech M

Stock Market Today: The decline follows a slump in US stocks on Tuesday

Source : ABPLIVE AI

Stock Market Today: Indian benchmark indices Nifty and Sensex started the trading session on a weak note on Wednesday, impacted by a sharp decline in IT and metal stocks. However, gains in pharma and energy stocks helped offset the losses to some extent. The decline follows a slump in US stocks on Tuesday, prompted by new economic data that heightened concerns about a potential inflation rebound, which could slow the Federal Reserve's pace of monetary policy easing. 

At 10:00 am, the Sensex dropped by 109.42 points, or 0.14 per cent, to 78,089.69, while the Nifty declined by 32.85 points, or 0.14 per cent, to 23,675.05. A total of 1,162 shares advanced, 1,974 shares declined, and 87 shares remained unchanged.

Reliance Industries, Bajaj Finserv, Axis Bank, Kotak Mahindra Bank and M&M were the top gainers on the Nifty. Laggards included Zomato, Adani Ports, Titan, Infosys and Tech M.

Broader Market

The broader market, as reflected in the mid and small-cap indices, followed the weak trend, with both declining by 0.8 per cent and 0.6 per cent, respectively. In 2024, the Nifty Smallcap 100 and Nifty Midcap 100 indices have outperformed, posting solid gains of over 20 per cent, surpassing the Nifty's more modest 9 per cent rise.

Sectorial Update

Among the sectors, Nifty Metal was the worst performer, dropping nearly 1 per cent as investors booked profits after a solid rise in the previous session. IT stocks continued their decline ahead of the Q3 earnings season, set to begin on January 9, with TCS, India's largest IT company, scheduled to announce results on Thursday. Nifty Bank, FMCG, and Realty indices each fell by 0.6 per cent. On the upside, the Pharma, Healthcare, and Oil & Gas indices saw gains.

Rupee Movement

Indian rupee fell 9 paise, hitting a record low of 85.83 against the US dollar in early trading on Wednesday. The decline was driven by a stronger US dollar and rising crude oil prices, compounded by the government's reduced economic growth projection for the country. Analysts suggest that the subdued domestic equity markets also put pressure on the rupee, while positive growth prospects in the US economy increased expectations of a delayed interest rate cut by the Federal Reserve.