Stock Market Today: Sensex Settles 50 Points Lower, Nifty Closes Below 23,700 Amid Volatility

TCS, Reliance Industries, ITC, Asian Paints and HCL Tech were the top gainers on the BSE Sensex. Major laggards were Adani Ports, Ultratech Cement, L&T, Sun Pharma and HDFC Bank

Stock Market Today: Experts suggest that the market is likely to consolidate in the near term, driven by event-based reactions, particularly corporate earnings

Source : ABPLIVE AI

Indian benchmark indices Nifty and Sensex staged a modest recovery on Wednesday, closing slightly in the negative as a rebound in IT stocks provided support. Gains in Reliance Industries lifted the oil and gas sector, helping to counteract the negative impact of weak global cues that had dampened sentiment earlier in the day.

US stocks dropped on Tuesday after recent economic data sparked concerns of a potential inflation rebound, which could slow the Federal Reserve's pace of monetary policy easing. This sentiment was echoed across Asia, which followed US market cues.

At the close, the Sensex fell 50.62 points, or 0.06 per cent, to 78,148.49, while the Nifty dropped 18.95 points, or 0.08 per cent, to 23,688.95. Of the 4,898 shares traded, 1,336 advanced, 2,466 declined, and 96 remained unchanged.

TCS, Reliance Industries, ITC, Asian Paints and HCL Tech were the top gainers on the BSE Sensex. Major laggards were Adani Ports, Ultratech Cement, L&T, Sun Pharma and HDFC Bank.

Experts suggest that the market is likely to consolidate in the near term, driven by event-based reactions, particularly corporate earnings, which will be the main catalyst for market momentum. Some also point out that the continued strength of US macroeconomic indicators is putting pressure on emerging markets. This has led to a stronger dollar and rising bond yields. 

For India, this could mean the Reserve Bank of India may opt to maintain interest rates in February, contrary to expectations of a rate cut. With the dollar index on the rise, foreign institutional investors (FIIs) may continue to sell in the near term. Analysts believe that Q3 earnings and guidance will be crucial in influencing FIIs' future stance.

Broader Market

The broader market, as reflected by the mid and small-cap indices, followed the weak trends and saw sharper declines of 1 per cent and 1.6 per cent, respectively. Both indices have reduced some of their losses after initially falling by nearly 2 per cent each. In 2024, the Nifty Smallcap 100 and Nifty Midcap 100 indices have outperformed, delivering solid gains of over 20 per cent, significantly surpassing the Nifty’s more modest 9 per cent rise.