Indian markets trade in the red as BSE Sensex drops 130.71 points to 79,672, and Nifty 50 slips 17.25 points to 24,113.85
Indian equity markets experienced fluctuations on December 2, 2024, as benchmark indices BSE Sensex and Nifty 50 traded in negative territory despite recovering from early losses. Investor sentiment remained cautious amidst global uncertainties and domestic economic concerns. Here’s an in-depth look at the day’s stock market movements.
Indian Stock Market Performance
At 11 AM, the BSE Sensex stood at 79,672, down by 130.71 points or 0.16%, while the Nifty 50 index was at 24,113.85, lower by 17.25 points or 0.07%. The indices reflected a mixed bag of performances, with gains in select sectors being offset by weakness in others.
Top Gainers and Losers
BSE Sensex:
Among Sensex constituents, Maruti Suzuki emerged as the top gainer, rising 1.97%, followed by Sun Pharma, Mahindra & Mahindra, Adani Ports & SEZ, UltraTech Cement, and Tech Mahindra.
On the downside, losses were led by NTPC (-1.10%), followed by TCS, IndusInd Bank, Larsen & Toubro, and Infosys.
Nifty 50:
On the Nifty 50, 16 out of 50 stocks were trading in the green. Gains were led by Maruti Suzuki India (+1.79%), followed by Sun Pharma, Shriram Finance, Apollo Hospital Enterprises, and Bajaj Auto.
Declines were capped by HDFC Life (-1.34%), ONGC, NTPC, Infosys, and Eicher Motors.
Sectoral Trends
Sectors displayed diverse performances.
Gainers: The Consumer Durables index led sectoral gains, rising 0.57%, followed by Healthcare, Pharma, Media, and Auto indices.
Losers: The Oil & Gas index was the biggest drag, declining 0.98%, followed by Bank, FMCG, Financial Services, IT, and Metal indices.
Broader Markets
The broader markets showed a slightly positive trend.
The Nifty Midcap 100 rose by 0.10%.
The Nifty Smallcap 100 advanced marginally by 0.04%.
Key Domestic Developments
Economic Indicators
India’s Gross Domestic Product (GDP) growth for the July-September quarter dropped to 5.4%, below market expectations. Investors remained focused on upcoming economic data, including:
Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting: Key rate decisions and commentary on inflation and GDP growth are expected this week.
Purchasing Managers’ Index (PMI): Manufacturing sector data is due today, while composite and services sector readings will follow on Wednesday, December 4.
Rising inflation, slowing consumption, and high interest rates continue to challenge domestic markets. Analysts anticipate a cautious stance from the RBI, with little likelihood of interest rate cuts in the current environment.
Global Trade Concerns
Investor concerns heightened after the US President-elect announced potential 100% tariffs on BRICS nations if they undermine the US dollar’s dominance in international trade. The announcement has prompted Indian ministries to develop strategies to mitigate potential impacts on the economy and trade.
Global Market Overview
Global equity markets painted a mixed picture:
Asia-Pacific:
China’s CSI 300 rose 0.57%, while the Shanghai Composite advanced 0.36%.
Hong Kong’s Hang Seng index climbed 0.73%.
Japan’s Nikkei 225 dipped 0.31%, but the broader Topix gained 0.45%.
South Korea’s Kospi was up 0.45%, while the Kosdaq rose 0.18%.
Australia’s S&P/ASX 200 added 0.3%.
Wall Street:
On Friday, the S&P 500 gained 0.56%, capping its best monthly performance since November 2023.
The Nasdaq surged 0.83%, securing a 6.2% monthly gain, buoyed by interest in artificial intelligence-related stocks.
Europe:
The STOXX Europe 600 rose 0.58%, and the FTSEurofirst 300 added 0.63%.
Global markets remain influenced by expectations of fiscal stimulus, inflation concerns, and geopolitical developments.
Key Commodities and Currency Movements
Oil:
US crude prices fell 0.42% to $68.43 per barrel, while Brent dropped 0.3% to $73.06 per barrel. The decline followed an Israel-Hezbollah ceasefire, easing supply concerns.
Gold:
Gold prices increased by 0.42%, reaching $2,652.09 per ounce, reflecting safe-haven demand amidst market uncertainties.
Dollar Index:
The dollar index, which measures the greenback against six major currencies, eased 0.26%, closing at 105.79. The softer dollar aligns with expectations of slower US Federal Reserve rate cuts.
Cryptocurrency Update
Cryptocurrencies showed varied movements today:
Bitcoin: Gained 2.23%, trading at $97,252.72.
Ethereum: Also advanced, benefiting from sustained investor interest.
The overall cryptocurrency market remains buoyed by speculative interest and ongoing developments in blockchain technology.
Expert Insights
Market analysts warn of potential consolidation in Indian equities due to:
Slowing economic growth.
Persistent inflationary pressures.
High interest rates.
Despite challenges, experts believe that quality stocks tend to perform well during downturns. Employing cost-averaging strategies and maintaining long-term investments are considered prudent approaches.
Global strategists suggest that the Indian market may be nearing a bottom after recent corrections, highlighting the importance of staying focused on fundamentally strong sectors.
Outlook for the Week
Investors are likely to track the following key developments:
RBI Monetary Policy: Commentary on inflation and GDP growth will be critical.
PMI Data: Updates on manufacturing, services, and composite sectors.
Global Trade Policies: US tariff threats and potential countermeasures by BRICS nations.
Corporate Announcements: Updates from key sectors, especially banking and IT.
The Indian stock market on December 2, 2024, reflected a cautious tone amidst domestic and global uncertainties. While broader indices remained under pressure, sectoral trends and stock-specific movements offered opportunities. Focus on macroeconomic data, policy updates, and global developments will shape market sentiment in the coming days.
