Stock Markets Close On A Weak Note: Sensex Falls Over 500 Points, Nifty Slips Near 21,500

The Nifty Next 50 and Nifty Microcap 250 indices led the gains and climbed 0.76 per cent and 0.67 per cent respectively during the day

The two key equity benchmarks, Sensex and Nifty, on Wednesday, closed trading in red. The S&P BSE Sensex dipped below 71,500 and dropped more than 500 points to close at 71,356.60, while the NSE Nifty50 nearly 150 points to settle just above the 21,500 mark at 21,516.75. 

On the 30-share Sensex platform, IndusInd Bank, ITC, Bharti Airtel, State Bank of India, and Axis Bank emerged as the prime gainers. On the flip side, JSW Steel, Tata Steel, Infosys, Wipro, and Tech M were among the losers during the day. 

In the broader markets, the indices closed trading in a mixed pattern. The Nifty Next 50 and Nifty Microcap 250 indices led the gains and climbed 0.76 per cent and 0.67 per cent respectively during the day. Among others, the Nifty 100 and Nifty 200 indices dropped 0.43 per cent and 0.31 per cent respectively as the session closed.

Sectorally, the Nifty Realty and PSU Bank indices jumped 1.23 per cent and 1.15 per cent respectively in the day. Among the laggards, the Nifty IT and Metal indices traded in losses at 2.52 per cent and 1.81 per cent respectively. 

In macroeconomic data, S&P Global released that India's Manufacturing PMI dipped to 54.9 in December against 56 logged a month earlier in November. This figure marked an 18-month low for the sector, attributed to a muted increase in factory orders and output, despite minimal inflation.

In the Adani-Hindenburg case, the Supreme Court announced its verdict and said that it found no ground to transfer the investigation from SEBI to SIT. "SEBI has completed investigation in 20 out of 22 matters. Taking into account the assurance of the Solicitor General, we direct the SEBI to complete the investigation in the other two cases within 3 months," CJI D Y Chandrachud read as part of the apex court’s verdict. The court also directed SEBI to conclude the probe into two pending cases within three months. 

In the previous trading session on Tuesday, the two key equity benchmarks, Sensex and Nifty, broke off last week’s rally and closed trading in red. The S&P BSE Sensex breached the 72,000 mark and dropped nearly 400 points to close at 71,892.48, while the NSE Nifty50 slipped 81.65 points to settle below the 21,700 mark at 21,660.25. 

Vinod Nair, head of research, Geojit Financial Services, noted, "Weak global indicators, like contraction in China & Euro zone manufacturing data, added concerns about global economic recovery in 2024. Importantly, the market was waiting for the FED minutes later today for rate insights."

The domestic rupee appreciated 4 paise to settle at 83.28 (provisional) against the US dollar on Wednesday, helped by easing crude oil prices and foreign fund inflows. Forex traders noted that the domestic unit remained under pressure as domestic equities continued on a negative trend. At the interbank foreign exchange, the domestic unit opened at 83.30, and then traded between 83.33 and 83.25, before settling at 83.28 (provisional) against the American dollar. A day earlier, the domestic unit closed at 83.32 against the greenback.

Foreign institutional investors (FIIs) became net buyers in the equity market on Tuesday as they bought shares worth Rs 1,602.16 crore, exchange data revealed. Brent crude futures, the global oil benchmark, declined 0.41 per cent to $75.58 per barrel.