Stock market today: Nifty 50, Sensex slip ahead of CPI data; IT stocks shine on Fed rate cut optimism
The Nifty 50 closed the session down by 0.38%, settling at 24,548, while the Sensex ended with a 0.29% loss at 81,289. Broader markets also saw declines, with the Nifty Midcap 100 finishing 0.46% lower at 59,021 points.
Indian markets experienced a volatile session on Thursday, December 12, despite a strong handover from Wall Street, as investors exercised caution ahead of India's key retail inflation data, scheduled for release later in the day.
According to a Mint poll of 16 economists, retail inflation is expected to have eased to 5.5% in November, down from 6.2% in October. Even if inflation moderated in November, it would still have exceeded the Reserve Bank of India's (RBI) medium-term target of 4%, reflecting ongoing challenges in achieving sustained price stability.
IT stocks performed well in today's session, with major heavyweights closing in the green. However, weak performances by Reliance Industries and private sector banks, including ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, dragged the markets lower.
The Nifty 50 closed the session down by 0.38%, settling at 24,548, while the Sensex ended with a 0.29% loss at 81,289. Broader markets also saw declines, with the Nifty Midcap 100 finishing 0.46% lower at 59,021, and the Nifty Smallcap 100 index recording a steeper drop of nearly 1%, closing at 19,466.
Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services said, "The market continued to remain range bound ahead of domestic CPI data and a weakening rupee. Though inflation is anticipated to drop, investors are maintaining a close vigil on the vegetable prices, which will determine the future rate trajectory. Meanwhile, the Nifty IT index reached a new high after US inflation data met expectations, boosting hopes for a Fed rate cut next week."
IT outperforms, media stocks face pressure
Indian IT stocks extended their winning streak to the fourth consecutive session today driven by heightened expectations of a Federal Reserve interest rate cut next week. These expectations were bolstered after both headline and core US inflation rates aligned with market forecasts, clearing the path for the Fed to proceed with rate reductions.
Riding this positive sentiment, the Nifty IT index surged 1.4% in intraday trade, crossing the 46,000 mark for the first time to hit a fresh all-time high of 46,002 points, surpassing its previous record of 45,398 set in the prior session. The index finally ended at a record high of 45,701, marking a gain of 0.77%.
In the U.S., consumer prices rose in November at the fastest pace in seven months. However, this is unlikely to deter the Fed from cutting interest rates for the third time this year, given signs of a cooling labour market, as per the market experts.
According to the CME FedWatch Tool, traders now assign a 98.6% probability of a 25-basis-point rate cut on December 18, up from 86% before the release of the U.S. inflation data.
Nifty IT index was the sole gainer, ending in the green, while all other indices closed lower. Nifty Media led the losses with a 2% decline, followed by Nifty FMCG, Nifty PSE, Nifty CPSE, Nifty PSU Bank, Nifty Auto, Nifty Energy, Nifty Infra, and Nifty Consumer Durables, each registering losses of more than 0.50%.
Nifty 50 stocks: Top gainers & losers
Out of the 50 stocks in the Nifty index, 34 closed in the red today, with heavyweights emerging as the biggest laggards. NTPC was the top loser, falling 2.7% to close at ₹355 per share, while HUL dropped 2.4%, ending the session at ₹2,345 per share.
Other stocks, such as Hero MotoCorp, Coal India, BPCL, SBI Life Insurance, Tata Motors, Apollo Hospitals, Tata Consumer Products, and 10 other stocks, closed lower by 1% to 2%.
On the winning side, Adani Group stocks saw gains, with Adani Enterprises rising by 1.9% and Adani Ports & SEZ increasing by 0.8%. Other stocks, including Bharti Airtel, Tech Mahindra, IndusInd Bank, Infosys, TCS, JSW Steel, and three other stocks, closed lower between 0.5% and 1.6%.
Nifty 50: Key levels and trends
Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty slipped below the recent consolidation on the daily chart, indicating a weakening trend in the near term. However, the decline was limited, and the index managed to stay above 24,500. This sideways consolidation in Nifty may persist for a few more days as the index remains within a defined range. A decisive fall below 24,470 could trigger a meaningful correction in the market. On the higher side, resistance is seen at 24,650-24,700."
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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