Stock market today: Nifty 50, Sensex fail to hold gains, close flat in volatile trade; PSU banks outperform
The Nifty 50 ended the session with a marginal gain of 0.04%, settling at 24,467, while the S&P BSE Sensex rose 110 points, or 0.14%, to close at 80,956. In contrast, the broader market outperformed the frontline indices.
Indian Stock Market: Indian markets struggled to sustain recent gains in today’s session as investors remained cautious ahead of the RBI's monetary policy announcement.
Heavyweights such as Bharti Airtel, Reliance Industries, and ITC weighed on the indices with notable declines. However, the banking sector outperformed, driven by expectations of a potential CRR cut by the RBI. This optimism comes amid tight liquidity conditions in the banking system and concerns over economic growth, as GDP expansion slowed to a seven-quarter low of 5.4 per cent in the July-September 2024 period.
Despite starting today’s session (December 4) on a positive note, the frontline indices struggled to sustain their momentum and briefly slipped into negative territory. However, strong buying interest in the banking sector provided crucial support, enabling the indices to recover and close with modest gains.
Nevertheless, Indian markets performed better in today’s trade compared to their peers. The Kospi Index fell 1.44 per cent after political turmoil in South Korea, triggered by a brief imposition of martial law, rattled investors. Meanwhile, Hong Kong stocks edged lower following US technology sanctions and uncertainty over further stimulus measures from China.
The Nifty 50 ended the session with a marginal gain of 0.04 per cent, settling at 24,467, while the S&P BSE Sensex rose 110 points, or 0.14 per cent, to close at 80,956. In contrast, the broader market outperformed the frontline indices, with the Nifty Midcap 100 index climbing 1.05 per cent to 58,112 and the Nifty Smallcap 100 index advancing 0.89 per cent to 19,173 compared to the previous session's close.
Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, "The domestic market maintained a positive trajectory, despite some volatility stemming from mixed sentiments in Asian markets due to the situation in South Korea. Broader indices showed strong performance, with the banking and financial sectors continuing to excel. Conversely, auto stocks were impacted by mixed November sales results."
He added, "The upcoming speech by the FED Chair could sway market sentiments, as recent FED minutes have shown confidence in the easing of inflation. Although the effects of US policies under the new administration remain uncertain, the minutes suggest a probable continuation of the rate easing cycle."
Sectoral Performance: PSU Banks shine, pharma lags
Among sectoral indices, Nifty PSU Bank extended its winning streak for the second consecutive session, gaining 2.25 per cent to reach a three-month high. The rally was fueled by expectations of supportive monetary policy from the Reserve Bank of India (RBI).
The RBI is anticipated to cut the Cash Reserve Ratio (CRR) to inject liquidity into the banking system and boost lending, a move expected to positively impact the profitability of financial firms. Other gainers included Nifty Realty, which rose 2.14 per cent on similar expectations of supportive measures from the RBI, and Nifty Consumer Durables, which ended with a 0.77 per cent gain.
On the losing side, Nifty Pharma emerged as the biggest laggard, declining 0.73 per cent, followed by Nifty Energy and Nifty Auto, which dropped 0.73 per cent and 0.71 per cent, respectively.
28 stocks end in red
Among the Nifty 50 constituents, 28 stocks closed in the red, with Bharti Airtel emerging as the top loser, declining by 2.3 per cent. Cipla, Bajaj Auto, Tata Motors, Adani Ports & SEZ, Power Grid Corporation, and seven other stocks also ended the session with losses exceeding 1 per cent.
On the winning side, HDFC Life Insurance and HDFC Bank led the gains, rising 2.6 per cent and 1.9 per cent, respectively. Other notable gainers included Apollo Hospitals, NTPC, Bajaj Finserv, TCS, Bajaj Finance, and Titan Company, each registering gains between 1 per cent and 1.5 per cent.
Nifty 50: Key levels and trends
Rupak De, Senior Technical Analyst, LKP, said, “The Nifty remained choppy throughout the day as investors exercised caution ahead of the RBI's monetary policy announcement. However, the index managed to close above the crucial level of 24,420.”
Rupak De added, “On the downside, support is placed at 24,350, while on the upside, it could move toward 24,700, where it may encounter initial selling pressure. A decisive move above 24,700 could trigger a continuation of its upward momentum. Conversely, a fall below 24,350 could weaken market sentiment.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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