Domestic Indices Close Flat Ahead Of New Year Following Market Uncertainty

Domestic benchmark indices closed flat on Tuesday as investors prepared for the New Year with caution, amid heightened uncertainty and elevated valuations in the stock market.

The final trading session of 2024 saw minor losses, despite a recovery from earlier declines.

IT and real estate stocks led the losses, while other sectors saw gains.

The Sensex ended at 78,139.01, down by 109.12 points or 0.14%, and the Nifty closed at 23,658, up by 13.25 points or 0.06%.

Nifty Bank closed at 50,887, down by 65.75 points, or 0.13%. The Nifty Midcap 100 index ended at 57,153.45, falling 36.30 points, or 0.06%, while the Nifty Smallcap 100 index finished at 18,763.30, up by 123.35 points, or 0.66%.

Looking ahead, market focus will likely shift to domestic Q3 results, offering insights into growth potential and earnings recovery, as well as the Union Budget, which will provide a short- to medium-term outlook amid global uncertainties, according to experts.

On the Bombay Stock Exchange (BSE), 2,321 stocks ended in the green, while 1,648 stocks closed lower. There was no change in 110 stocks.

In sectoral performance, IT, Financial Services, and Realty saw the biggest losses, while PSE, Oil & Gas, Auto, PSU Bank, Pharma, FMCG, Metal, Media, Energy, Private Bank, Infra, and Commodities sectors were the top gainers.

Among Sensex stocks, Tech Mahindra, Zomato, TCS, Infosys, ICICI Bank, Bajaj Finance, and Hindustan Unilever were the top losers.

Kotak Mahindra Bank, ITC, UltraTech Cement, Tata Steel, SBI, Tata Motors, and L&T were the top gainers.

Rupee Weakens As Dollar Strengthens; Nifty Struggles To Break Key Levels

Rupak De of LKP Securities noted that although the Nifty started weak, it recovered smartly during the day.

He added, “However, the technical setup remains unchanged as the index failed to break above any significant moving averages. Despite this, sentiment appeared to improve throughout the session.”

“The rupee traded lower at 85.68, down by 0.12rs, as the dollar index’s recent 7 per cent rally continues to exert pressure on the domestic currency,” Rupak De noted.

Jateen Trivedi of LKP Securities asserted, “The immediate range for the rupee is expected between 85.55 and 85.80 as markets await fresh global triggers.”

Foreign institutional investors (FIIs) sold equities worth Rs 1,893.16 crore on 30 December, while domestic institutional investors (DIIs) bought equities worth Rs 2,173.86 crore on the same day.

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