Indian stock markets had a volatile session on Thursday, December 12, despite a strong lead from Wall Street. Investors remained cautious ahead of India's key retail inflation data, which was scheduled for release later in the day. IT stocks performed well, with major heavyweights ending in the green. However, weaker performances from Reliance Industries and private sector banks, including ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, pulled the markets lower.
The Nifty 50 closed down by 0.38%, settling at 24,548 points, while the Sensex ended with a 0.29% loss at 81,289 points. Broader markets also saw declines, with the Nifty Midcap 100 dropping by 0.46% to close at 59,021 points, and the Nifty Smallcap 100 index falling by nearly 1%, ending at 19,466 points.
Vinod Nair of Geojit Financial Services, commented on the market's performance, saying, "The market continued to remain range-bound ahead of the domestic CPI data and a weakening rupee. Though inflation is expected to drop, investors are closely monitoring vegetable prices, which will influence 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."
Indian IT stocks continued their positive momentum for the fourth consecutive session on Thursday, December 12, driven by expectations of a Federal Reserve interest rate cut next week. These hopes were supported by US inflation data, which met market forecasts, clearing the way for the Fed to reduce rates.
The Nifty IT index rose 1.4% during intraday trading, crossing the 46,000 mark for the first time and hitting an all-time high of 46,002 points. It closed at a record high of 45,701 points, gaining 0.77%.
In the US, consumer prices rose at the fastest pace in seven months in November. However, this is not expected to prevent the Federal Reserve from cutting interest rates for the third time this year, as signs of a cooling labour market suggest that a rate cut is still likely.
Out of the 50 stocks in the Nifty index, 34 ended the day in the red. NTPC was the biggest loser, falling 2.7% to close at ₹355 per share. HUL also dropped by 2.4%, ending at ₹2,345 per share. Other stocks like Hero MotoCorp, Coal India, BPCL, SBI Life Insurance, Tata Motors, Apollo Hospitals, and Tata Consumer Products dropped by 1% to 2%.
On the other hand, Adani Group stocks performed well, with Adani Enterprises rising by 1.9% and Adani Ports & SEZ up by 0.8%. Other stocks, including Bharti Airtel, Tech Mahindra, IndusInd Bank, Infosys, TCS, and JSW Steel, saw declines ranging from 0.5% to 1.6%.
Rupak De of LKP Securities, noted, "The Nifty slipped below its 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 upside, resistance is seen at 24,650-24,700."
(By arrangement with Livemint.com)
