The closure of Indian stock markets on Wednesday due to the Christmas holiday was in line with many other major Asian markets. While some markets in the region displayed mixed trends, with Japan’s Nikkei 225 seeing a marginal decline, Taiwan’s Weighted Index recorded a gain of 0.62 per cent, and China’s Shanghai Composite Index traded almost flat.
Globally, thin trading volumes were observed as several markets remained closed for the festive season, leading to subdued investor activity. Indian markets are currently experiencing selling pressure towards the end of the year, primarily due to the strong dollar and high bond yields in the US, which are prompting foreign institutional investors to sell during rallies. There doesn’t seem to be a near-term rally in sight.
On Tuesday, the domestic stock markets ended in the red after a volatile session, with Nifty 50 declining by 0.11 per cent and Sensex closing down by 0.09 per cent. Tata Motors, Adani Enterprises, Eicher Motors, BPCL, and ITC were among the major gainers, while Power Grid Corp, JSW Steel, SBI Life Insurance, IndusInd Bank, and Grasim Industries were among the major losers.
Domestic investors bought equities worth ₹2,819 crore, while foreign institutional investors continued their selling trend and sold equities worth ₹2,454 crore by the closing bell on Tuesday.
As the year comes to a close, investors are advised to prioritize safety over returns in the current market context. Stay tuned for more updates on the evolving market trends and dynamics in the coming days.
