Equity markets ended on a slightly lower note on Tuesday, with the BSE Sensex closing down by 67.30 points and the NSE Nifty declining by 25.80 points. The market sentiment was impacted by continued selling by foreign institutional investors (FIIs) and concerns over economic growth. However, auto stocks performed well, with Tata Motors leading the gainers.
The market breadth remained negative, with more decliners than advancers on the BSE. The Indian rupee also weakened, reaching a record low against the dollar, further adding to the cautious sentiment in the market. Trading volumes were low as investors awaited the Christmas holiday on Wednesday.
Sector-wise, most indices ended in the red, with metals experiencing the steepest decline. The banking sector also showed weakness, with the Nifty Bank index closing lower. Market participants are now turning their focus to upcoming events such as the Reserve Bank of India’s monetary policy and the Union Budget for 2025, in anticipation of measures to support economic growth and market stability.
In stock-specific action, HFCL shares gained after the company announced the inauguration of a new defense equipment manufacturing facility. The broader market showed mixed performance, with the Nifty Midcap Select index gaining marginally while the Nifty Next 50 declined.
Technical analysts maintain a cautious stance on the market’s direction, noting that the near-term trend of the Nifty is weak. Looking ahead, market experts suggest that markets are entering a new macro regime in 2025, with rising uncertainty on inflation and growth potentially impacting foreign flows and currencies in emerging markets.
Overall, the market ended on a flat note amid volatile trading, with investors staying on the sidelines waiting for further triggers. Foreign fund outflows and global cues influenced market sentiment, with investors closely monitoring developments in Asian and European markets as well as global oil prices. Trading in Indian financial markets will remain suspended on Wednesday for Christmas.
