Nifty, Sensex Fall for 3rd Straight Session; HDFC Bank, ICICI Bank Drag

Market Update at 03:55 PM: Indian equity benchmarks ended lower for the third consecutive session on Friday, December 26, as year-end trading volumes remained thin and investors stayed cautious ahead of the Q3 earnings season. With no immediate triggers, the market showed signs of short-term fatigue after recent record highs.

At the close, the Nifty 50 slipped 99.8 points, or 0.38 per cent, to settle at 26,042.30, while the Sensex declined 367.25 points, or 0.43 per cent, to 85,041.45. Both indices had touched record highs in November after a 14-month rally, but have remained subdued in December, losing around 1 per cent each. On a weekly basis, the Nifty 50 ended 0.31 per cent lower.

Markets came under pressure due to a mix of macroeconomic and market-specific factors. The rupee weakened to 89.94 against the US dollar amid continued foreign fund outflows, firm crude oil prices, and cautious global sentiment. Foreign institutional investors remained net sellers for the third straight session, selling shares worth Rs 1,721.26 crore. Profit booking near record levels further weighed on frontline stocks.

With only a few trading sessions left in the year and the absence of fresh catalysts, further market upside is likely to depend on the strength of Q3 earnings.

Out of the 11 sectoral indices, only two ended in positive territory. The Nifty Metal index emerged as the top gainer, rising 0.59 per cent and extending its winning streak to seven consecutive sessions. The Nifty FMCG index edged up marginally by 0.03 per cent. In contrast, the Nifty IT index fell sharply by 1.03 per cent, marking its third straight session of losses.

Broader market indices also ended lower. The Nifty Midcap 100 index declined 0.23 per cent, while the Nifty Smallcap 100 slipped 0.08 per cent.

Market breadth remained negative. Out of 3,249 stocks traded on the NSE, 1,285 advanced, 1,871 declined, and 93 remained unchanged. During the session, 76 stocks touched their 52-week highs, while 71 hit 52-week lows. Additionally, 57 stocks were locked in Upper Circuits, and 50 stocks hit Lower Circuits.

Market Update at 12:18 PM: Indian equity benchmark indices were trading lower on Friday as the holiday-shortened week offered limited fresh triggers for investors. Market participation remained muted after exchanges were shut on Thursday for the Christmas holiday.

Around 11 AM, the BSE Sensex was at 85,218.52, down 190 points or 0.22 per cent, while the NSE Nifty50 was quoted at 26,081.3, lower by 60.8 points or 0.23 per cent.

On the downside, Bajaj Finance, Eternal, Sun Pharma, TCS, Tata Steel, and HCLTech emerged as the top laggards. In contrast, buying interest was seen in BEL, Titan, NTPC, Power Grid, and ICICI Bank, which featured among the Top Gainers.

Broader markets showed relative resilience. The Nifty MidCap index edged up 0.07 per cent, while the Nifty SmallCap index gained 0.21 per cent, outperforming the frontline benchmarks.

Sectorally, Nifty Metal rose 0.3 per cent and Nifty Consumer Durables advanced 0.58 per cent, leading the gains. On the other hand, Nifty IT declined 0.4 per cent, and Nifty Auto slipped 0.27 per cent, weighing on the overall market sentiment.

Market Update at 09:40 AM: India’s equity benchmarks opened marginally lower on Friday, pausing after recent highs amid thin year-end trading volumes. 

The Nifty 50 index slipped 0.16 per cent to 26,099.05, while the BSE Sensex eased 0.17 per cent to 85,271.21 as of 9:16 a.m. IST. Trading activity remained subdued after most global markets, including India, were closed on Thursday for the Christmas holiday.

Sectoral performance was largely negative, with 14 of the 16 major sectoral indices trading in the red at the open. The broader market also saw mild pressure, as the Nifty Smallcap and Nifty Midcap indices declined 0.1 per cent each.

Both benchmark indices had scaled record highs in November after a 14-month gap. However, momentum has softened in December so far, with the Nifty and Sensex down around 0.2 per cent and 0.4 per cent respectively, reflecting consolidation at elevated levels amid low participation.

Pre-Market Update at 7:45 AM: Indian equity benchmarks Sensex and Nifty 50 are likely to open on a muted note on Friday, December 26, despite broadly positive global cues. Early signals from the GIFT Nifty point to a cautious start, with the index trading near the 26,115 mark, around 16 points lower. Asian markets edged higher in thin holiday trade, led by gains in Japanese and South Korean equities, while several regional markets remained closed due to year-end holidays.

Institutional activity remained mixed on Wednesday, December 24. Foreign Institutional Investors were net sellers for the third straight session, selling equities worth Rs 1,721.26 crore. In contrast, Domestic Institutional Investors continued to provide strong support, buying equities worth Rs 2,381.34 crore, marking their 44th consecutive session of net inflows.

Indian equities ended marginally lower on Wednesday as profit booking erased early gains. The Nifty 50 slipped 0.13 per cent to close at 26,142, while the BSE Sensex declined 0.14 per cent to 85,408. Sectoral performance was largely weak, with oil and gas, energy, IT and FMCG stocks dragging the indices. The BSE Telecommunication index stood out as the sole gainer, rising about 0.25 per cent. The India VIX eased over 2 per cent, indicating lower near-term volatility.

Broader markets also closed in the red. The BSE Mid-Cap and Small-Cap indices fell 0.37 per cent and 0.14 per cent, respectively, while market breadth on the NSE remained negative. Trent, Shriram Finance and Apollo Hospitals supported the Nifty, whereas InterGlobe Aviation, Adani Enterprises and Dr Reddy’s Laboratories weighed on the index.

US equities ended a quiet pre-Christmas session on a positive note on Wednesday, with major indices touching fresh record highs. Investor sentiment was supported by economic data that eased concerns about a sharp slowdown in the US labour market, strengthening expectations of a soft landing. The S&P 500 rose 0.3 per cent to 6,932.05, the Dow Jones Industrial Average gained 0.6 per cent to 48,731.16 and the Nasdaq Composite advanced 0.2 per cent to 23,613.31. US markets closed early on Christmas Eve and remained shut on Thursday, with full trading resuming on Friday, though volumes are expected to remain muted.

Japanese government bond prices edged higher on Friday, helping yields retreat from multi-decade highs. The 10-year JGB yield slipped by one basis point to 2.035 per cent after touching 2.1 per cent earlier in the week, its highest level since 1999. Yields have risen sharply in recent weeks amid concerns over debt-funded fiscal stimulus, while expectations of future rate hikes by the Bank of Japan continue to influence short-term yields.

Precious metals extended their rally amid persistent geopolitical risks. Spot gold traded 0.3 per cent higher in early Asian hours at USD 4,493.63 per ounce, setting a new record high. Spot silver surged as much as 2.7 per cent to cross USD 73.78 per ounce, hitting an all-time high for the fifth consecutive session.

Crude oil prices edged higher on Friday and are heading for a weekly gain. Brent crude futures traded near USD 62.4 per barrel, while WTI crude hovered around USD 58.5 per barrel. Prices were supported by heightened geopolitical tensions after the US intensified its naval blockade of Venezuela, including the seizure of oil tankers.

For today, Sammaan Capital will remain on the F&O ban list.

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