Indian Markets Fall for 3rd Session; Sensex at 84,559 and Nifty at 25,818

Market Update at 3:55 PM: Indian equity benchmark indices ended lower for the third consecutive session on Wednesday as media, realty and consumer durables stocks weighed on market sentiment.

Around 3:30 PM, the BSE Sensex closed at 84,559.65, down 120.21 points or 0.14 per cent, while the NSE Nifty50 settled at 25,818.55, lower by 41.55 points or 0.16 per cent.

Among the Sensex 30 pack, SBI, Infosys, Axis Bank, Sun Pharma, Maruti Suzuki, TCS and Tata Steel emerged as Top Gainers, rising up to 1.5 per cent. On the other hand, Trent, ICICI Bank, HDFC Bank, Adani Ports and Bajaj Finserv were among the key laggards.

In the broader market, the BSE MidCap and SmallCap indices also slipped into the red, falling 0.53 per cent and 0.85 per cent, respectively. Sectorally, Nifty Media declined the most, down 1.7 per cent, followed by Nifty Consumer Durables, Nifty Realty and Nifty Chemicals. However, Nifty PSU Bank and Nifty IT managed to end on a positive note.

In the commodity space, MCX Silver March futures scaled fresh record highs around Rs 2,05,665 levels. Meanwhile, in the currency market, the Indian rupee rebounded to 89.81 levels against the USD on Wednesday following the RBI intervention.

Market Update at 01:15 PM: Indian equity benchmark indices turned volatile on Wednesday after a marginally positive opening, amid a mixed trend in banking stocks. Following the Reserve Bank of India’s intervention, the Indian Rupee rebounded sharply to 89.81 levels against the USD by afternoon.

At 1 PM, the BSE Sensex stood at 84,435.06, down 244.8 points or 0.29 per cent, while the Nifty50 was at 25,781.1, lower by 79 points or 0.31 per cent. Among the Sensex 30 stocks, SBI, Bajaj Finance, Eternal and Axis Bank were the top gainers, rising nearly 1 per cent each. In contrast, ICICI Bank and HDFC Bank were among the major laggards.

The broader market also moved in the red, with the BSE MidCap index slipping 0.3 per cent and the SmallCap index falling 0.41 per cent.

In the commodity segment, MCX Silver March futures gained traction and touched fresh record highs around Rs 2,05,665 levels. On the currency front, the Indian Rupee opened at 91.07 against the USD but soon witnessed a sharp recovery and hovered around 90.05/USD during the day.

Market Update at 10:30 AM: Indian equity benchmarks opened on a flat note on Wednesday, tracking muted Asian markets after mixed US jobs data failed to significantly alter expectations around the Federal Reserve’s interest rate trajectory. Investor sentiment remained cautious amid the absence of strong global triggers.

Persistent foreign portfolio investor outflows from Indian equities and continued depreciation in the rupee against the USD added to the pressure. Sentiment was also weighed down by delays surrounding a potential trade agreement between India and the United States.

At 9:15 a.m. IST, the Nifty 50 was marginally higher by 0.01 per cent at 25,862.45, while the BSE Sensex also edged up 0.01 per cent to 84,687.36. Market breadth was mildly positive, with 12 of the 16 major sectoral indices trading in the green.

The broader markets underperformed the benchmarks, with the Nifty Midcap and Nifty Smallcap indices trading flat in early deals, indicating a lack of strong risk appetite among investors.

Across Asia, equity markets remained subdued as mixed readings from recent US jobs data kept investors on the sidelines, awaiting clearer signals on economic growth and future policy moves by the Federal Reserve.

Pre-Market Update at 7:40 AM: Indian equity markets are likely to open on a cautious note on Wednesday, December 17, after two consecutive sessions of losses. Global cues remain mixed, while continued foreign fund outflows are keeping investor sentiment subdued.

Early indicators suggest a muted start for domestic equities. The GIFT Nifty was trading near the 26,940 level, showing a premium of about 17 points, pointing to a flat-to-cautious opening for the Nifty 50 and the Sensex.

Asian markets slipped in early trade, mirroring a subdued close on Wall Street. Softer U.S. employment data failed to strengthen expectations of further Federal Reserve rate cuts. At the same time, crude oil prices surged after U.S. President Donald Trump announced a “total and complete” blockade on sanctioned oil tankers linked to Venezuela, raising geopolitical risk concerns.

On the institutional front, Foreign Institutional Investors were net sellers on Tuesday, December 16, selling equities worth Rs 2,381.92 crore and extending their selling streak to the 14th consecutive session. Domestic Institutional Investors continued to provide support, buying equities worth Rs 1,077.48 crore, marking their 38th straight session of net inflows.

Indian equity benchmarks ended lower on Tuesday amid persistent foreign fund outflows, a sharp fall in the rupee, and a lack of clarity on the India–U.S. trade deal. The Nifty 50 closed 0.64 per cent lower at 25,860.10, while the Sensex declined 0.63 per cent to 84,679.86. Market volatility eased slightly, with India VIX down 1.83 per cent, even as the rupee weakened past 91 against the USD for the first time. Markets have remained largely range-bound over the past two weeks after hitting record highs on December 1.

Sectorally, Nifty Media was the only index to close in the green, edging up 0.03 per cent. Nifty Realty fell 1.29 per cent, snapping a two-day rally. Broader markets underperformed, with the Nifty Midcap 100 down 0.83 per cent and the Smallcap 100 lower by 0.92 per cent.

U.S. equities ended Tuesday on a mixed note as investors assessed fresh labour market data and ongoing sector rotation. The S&P 500 extended its losing streak to three sessions, closing 0.24 per cent lower at 6,800.26. The Dow Jones Industrial Average slid 302.30 points, or 0.62 per cent, to 48,114.26, while the Nasdaq Composite gained 0.23 per cent to settle at 23,111.46.

Employment growth in the U.S. remained subdued in November, while the unemployment rate rose to a four-year high, pointing to a gradual cooling in labour market conditions. Nonfarm payrolls increased by 64,000 in November after a sharp decline of 105,000 jobs in the previous month, according to the Bureau of Labor Statistics. The unemployment rate climbed to 4.6 per cent from 4.4 per cent in September, while revised October data was unavailable due to the government shutdown. The sharp fall in October payrolls was largely driven by a reduction of 162,000 federal government jobs following deferred resignation exits under the Trump administration.

In currency markets, Asian currencies consolidated against the dollar, supported by expectations of U.S. rate cuts. The dollar index was marginally higher by 0.01 per cent at 97.837, even as overall U.S. economic data released overnight remained weaker than expected.

Gold prices edged higher in early Asian trade, supported by rate-cut expectations that typically boost demand for non-interest-bearing assets. Spot gold rose 0.1 per cent to USD 4,307.90 per ounce. Silver jumped 2.26 per cent to USD 65.16 per ounce after a sharp recovery in the previous session.

Crude oil prices rebounded strongly, reversing earlier losses. U.S. crude futures advanced 1.5 per cent to USD 56.12 per barrel, while Brent crude rose 0.8 per cent to USD 59.37 per barrel. Oil prices had earlier declined on optimism around a potential Russia–Ukraine peace deal, which raised expectations that sanctions could be eased.

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Disclaimer: The article is for informational purposes only and not investment advice.