The Indian stock market witnessed a subdued trading session on Wednesday, closing nearly flat as investors opted for caution in the lead-up to year-end. The BSE Sensex slipped by 13.34 points, ending at 81,496.70, while the NSE Nifty declined by 20.25 points to close at 24,630.30.
Market sentiment was mixed on the Nifty 50 index, with 26 stocks advancing and 23 declining. Among the top gainers were Trent, Bajaj Finance, Britannia, Shriram Finance, and Hero Motocorp, which attracted notable buying interest. Conversely, JSW Steel, Adani Ports, NTPC, SBI, and Axis Bank were among the top laggards, weighing on the indices.
Foreign investors maintained their bullish outlook, purchasing equities worth Rs 1,285 crore on Tuesday. This reflects sustained interest in Indian markets despite prevailing volatility. However, traders are now shifting their focus to the release of the US Consumer Price Index (CPI) inflation data, a crucial event expected to guide global market trends, central bank policies, and bond yields.
Market analysts highlighted that the current consolidation phase is typical for this period, as participants carefully evaluate economic indicators and corporate earnings before making strategic decisions. The trajectory of the Indian markets in the near term is likely to be influenced by global cues, particularly inflation trends.
Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market showed subdued movements, reflecting mixed global sentiments ahead of the US CPI inflation data. This data could shape future Federal Reserve policy decisions. Meanwhile, the US dollar strengthened, and bond yields edged up slightly.” Nair also noted gains in defensive sectors such as FMCG and pharmaceuticals, while optimism over potential stimulus measures from China bolstered the metals sector.
Adding to this, VLA Ambala, Co-Founder of Stock Market Today, pointed out that the government’s decision not to issue new sovereign gold bonds, coupled with surging gold prices, has spurred increased demand for gold as a hedging instrument. “Investors are turning to gold stocks and ETFs, as evidenced by the near tripling of gold ETF flows,” she said.
Ambala also addressed broader economic challenges, said, “High inflation remains a pressing global concern, acknowledged recently by the Finance Minister. The depreciating Indian rupee is another factor weighing on global GDP valuations, adding to economic worries. The new RBI Governor faces the critical task of navigating monetary policy to combat inflation while coordinating with government initiatives.”
(ANI)
