The Indian stock market stayed lower for the second consecutive session on Tuesday, December 9, with key benchmark indices dropping another 0.50% after their steepest fall in over two months in the previous session.
A lack of fresh triggers, uncertainty over a trade deal with the US, persistent selling by overseas investors, and concerns over the sharp depreciation of the Indian rupee continued to weigh on market sentiment.
Investors also remained cautious ahead of the US Federal Reserve’s rate decision, causing the Nifty 50 to slip another 0.47% to 25,838 and the S&P BSE Sensex to fall 0.56% to 84,628.
Despite pressure on the frontline indices, mid- and small-cap stocks staged a smart recovery, with the Nifty Midcap 100 index gaining 0.40% and the Nifty Smallcap 100 index closing higher by 1.14%.
Sectoral performance was mixed, with Nifty IT, Nifty Auto and Nifty Pharma falling between 0.50% and 1.20%, while the Nifty PSU Bank index and Nifty Realty regained strength, with each rallying 1.29% and 1% respectively.
While US trade representatives are expected to visit India for trade negotiations this week, US President Donald Trump warned that he could impose additional tariffs on agricultural imports, particularly Indian rice, triggering a sharp fall in rice related stocks.
Meanwhile, the US central bank is widely expected to cut rates by another 25 basis points at its final meeting of the year, bringing the Federal Funds rate to 3.5%-3.75%. However, experts said the Fed will then take a more data-dependent stance.
Auto and IT stocks extend losses
eClerx Services was the top laggard among Nifty 500 stocks today, dropping 5.5% to ₹4,498.9 apiece, followed by Reliance Infrastructure, which crashed another 5% to ₹139.7 apiece.
Despite a sharp drop in crude oil prices, oil-sensitive stocks also remained under pressure, with Asian Paints falling 4.5% to ₹2,796 apiece. Ather Energy slipped 4.4% to ₹648.55 apiece, while Coforge, ITC Hotels, Sobha, BSE and Balrampur Chini Mills also declined by up to 3%.
Extending its fall for the second consecutive session, Hero MotoCorp shares slumped 3% to ₹6,000 apiece. Technology stocks such as HCL Technologies, Tech Mahindra and Wipro also plunged by over 1.5%.
Relief rally grips beaten-down stocks
Kaynes Technology share price recovered sharply by 14% to ₹4,331, ending its four-day losing streak, while its peers PG Electroplast and Syrma SGS Technology rose by 5% and 4%, respectively.
Eris Lifesciences emerged as another top performer, rallying 11% to ₹1,701 apiece.
Snapping its three-day losing run, Triveni Engineering shares jumped 8% to ₹365 apiece. Other top performers included Kirloskar Brothers, Vodafone Idea, Usha Martin, Saregama India, Bata India, Brainbees Solutions, Vedant Fashions and Aptus Value Housing, while 26 other stocks from the index closed higher in the range of 3% to 5%.
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