The last trading week of 2024 kicked off with subdued market activity, as benchmark indices experienced a decline in early trade due to weakness in technology stocks and mixed global cues. The Sensex opened slightly lower and continued to trend downwards, while the Nifty also opened in the red and followed suit. The technology sector led the losses, with major IT firms such as Infosys, Wipro, HCLTech, and Tech Mahindra facing selling pressure.
On the other hand, Adani Group stocks showed strength, with Adani Enterprises and Adani Ports posting gains. Other gainers included Shriram Finance, Apollo Hospitals, and UltraTech Cement. Market experts highlighted concerns about the uncertainty surrounding the future of the economy under the potential leadership of “Trump 2.0.”
The market sentiment remains cautious due to persistent foreign institutional investor outflows and a weakening rupee. The Indian rupee hit a record low against the US dollar, while rising US bond yields are adding to the challenges. Technical analysts suggested that the markets are at a crucial juncture, with the Nifty needing to stay above a certain level to avoid prolonged weakness.
Looking ahead, market participants will be monitoring upcoming manufacturing PMI data and monthly auto sales figures. Optimism about strong Q3 results and a favorable Union Budget is expected to boost market sentiment in select sectors such as pharma, real estate, auto, and energy. In the commodities space, gold and silver prices showed high volatility, influenced by factors such as interest rate hikes and weakening emerging market currencies.
Despite the current volatility, the Nifty is on track to record its ninth consecutive year of gains. Investors are expecting the market to remain range-bound in the near term as they await fresh triggers from the upcoming earnings season and the Union Budget. As the year comes to a close, market participants will be closely watching for any developments that could impact the market in the new year.
