Stock Market Today: Sensex, Nifty Settle Lower As Investors Await Inflation Numbers

Stock Market Today: HUL, Tata Motors, Axis Bank, Asian Paint and Nestle were the worst-hit stocks on the Nifty 50, while L&T, Tata Steel, JSW Steel, HDFC Bank and Adani Ports were the top gainers

Stock Market Today: The Sensex and Nifty traded within a narrow range and ended lower on Monday as investors awaited two crucial economic data releases later in the week—US consumer price inflation (CPI) data on December 11 and India’s CPI data on December 12. Consumer stocks dominated the session, with Godrej Consumer’s weak sales forecast for the December quarter putting pressure on the sector.

At the close, the Sensex fell by 200.7 points, or 0.3 per cent, to settle at 81,508.5, while the Nifty dropped 58.8 points, or 0.2 per cent, ending at 24,619. Around 2,222 shares advanced, 1,692 declined, and 151 remained unchanged.

HUL, Tata Motors, Axis Bank, Asian Paint and Nestle were the worst-hit stocks on the Nifty 50, while L&T, Tata Steel, JSW Steel, HDFC Bank and Adani Ports were the top gainers.

Investors are also awaiting the US Federal Open Market Committee’s interest rate decision, scheduled for December 18.

Sectorial Update

The Nifty FMCG index dropped over 2 per cent, weighed down by a more than 9 per cent plunge in Godrej Consumer Products shares. The company forecasted mid-single-digit sales growth for Q3, citing "subdued" demand conditions in recent months.

The Nifty Auto index fell 0.8 per cent after November retail data showed a year-on-year decline in passenger and commercial vehicle sales. Hyundai Motor shares dropped nearly 2 per cent, while Tata Motors lost almost 2 per cent, and Maruti Suzuki and Mahindra & Mahindra were down 0.5 per cent and 0.7 per cent, respectively.

Pharma and healthcare stocks also faced selling pressure, with the Nifty Pharma and Nifty Healthcare indices falling 0.5 per cent. The exclusion of the US Biosecure Act from a key defence bill, seen as a boost for Chinese biotech firms, negatively impacted Indian Contract Development and Manufacturing Organisation (CDMO) and Contract Research Organisation (CRO) players. Shares of Neuland Laboratories, Laurus Labs, Divi's Laboratories, Piramal Pharma, and Syngene dropped 2-6 per cent.

On the other hand, financial services stocks continued their gains from the previous week, bolstered by the Reserve Bank of India's (RBI) decision to reduce the cash reserve ratio (CRR) for banks from 4.5 per cent to 4 per cent. This move is expected to boost liquidity, support credit growth, and aid economic recovery.

Broader Markets 

The broader markets outpaced the benchmarks, with the BSE Midcap index rising by 0.3 per cent and the Smallcap index gaining 0.5 per cent.