Sensex Sheds 1,258 Points In Broad Sell-Off, Nifty At 23,616; Tata Steel Down 4% – News18
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Indian benchmark indices, the BSE Sensex and Nifty 50, opened slightly higher on Monday, buoyed by positive cues from Wall Street.
Sensex, Nifty Today
Benchmark equity indices, BSE Sensex and NSE Nifty50, closed the first trading session of the week on a negative note, each slipping by over 1%, amid widespread selling pressure across sectors.
The 30-share Sensex plunged by 1,258.12 points, or 1.59%, to end at 77,964.99. It traded within a range of 79,532.67 to 77,781.62 during the day.
Similarly, the NSE Nifty50 lost 388.70 points, or 1.62%, closing at 23,616.05. The index hit a high of 24,089.95 and a low of 23,551.90 on Monday.
The session favored the bears, with 43 out of the 50 Nifty50 stocks closing in the red. Major decliners included Trent, Tata Steel, BPCL, NTPC, and Adani Enterprises, with losses reaching up to 4.60%. However, Apollo Hospitals, Tata Consumer Products, Titan Company, HCL Tech, and ICICI Bank were among the seven stocks that managed to close in the green, with gains of up to 1.94%.
The India VIX, which measures market volatility, dropped by 15.58%, closing at 15.65 points.
Broader market indices followed the same trend, with the Nifty Smallcap100 and Nifty Midcap100 falling by 2.70% and 3.20%, respectively.
All sectoral indices ended lower, with the Nifty PSU Bank index taking the biggest hit, down by 4%, led by declines in Union Bank of India and Bank of Baroda.
Global Cues
Asian markets started cautiously on Monday as investors braced for a week packed with economic data that is expected to highlight the relative outperformance of the United States and continue to support the dollar’s ongoing bullish trend.
The key event in the US this week is the December payrolls report, due on Friday, with analysts predicting a 150,000 increase in jobs and an unemployment rate holding steady at 4.2%. This will be preceded by data on ADP hiring, job openings, and weekly jobless claims, as well as surveys on manufacturing, services, and consumer sentiment. Positive data could reinforce expectations for fewer rate cuts from the Federal Reserve, with markets currently expecting only a 40 basis point reduction for 2025.
On Wednesday, the minutes from the Fed’s latest meeting will provide further insight into their future interest rate projections, and at least seven key policymakers, including influential Fed Governor Christopher Waller, are scheduled to speak.
Inflation data from the EU and Germany this week will offer further clarity on potential rate cuts by the European Central Bank, while China’s consumer price report on Thursday is expected to support the case for additional stimulus in the region.
Given the numerous upcoming events, investors remained cautious, and MSCI’s broadest index of Asia-Pacific shares outside Japan edged up by 0.1%.
Among Asian markets, Japan’s Nikkei declined by 1.05%, while South Korea’s Kospi gained 1.12%, amid ongoing political uncertainty. Australia’s ASX 200 advanced by 0.12%, and Hong Kong’s Hang Seng index rose by 0.45%. In mainland China, the CSI 300 dipped by 0.06%, and the Shanghai Composite fell by 0.05%.
Futures for the S&P 500 and Nasdaq were slightly higher in early trade.
Goldman Sachs analysts pointed out that the S&P 500 delivered a total return of 25% in 2024, marking its second consecutive year of gains over 20%. While the rally was concentrated in just five stocks, Goldman expects an additional 11% rise in 2025, driven by a similar increase in earnings. The new earnings season begins on January 15.
The US bond market has faced challenges, with 10-year yields inching up to 4.631%, nearing last week’s eight-month high of 4.641%. This week, investor sentiment will be tested by the sale of $119 billion in new three-, 10-, and 30-year Treasuries.
The climb in yields helped push the dollar index up to 108.950, after rising nearly 0.9% last week to a peak of 109.540. The strong dollar continues to weigh on gold prices, holding the metal at $2,641 per ounce.
Oil prices received support from colder weather in Europe and the US, with a winter storm bringing snow, ice, and freezing temperatures to large areas of the US on Sunday. Brent crude rose by 19 cents to $76.70 per barrel, while US crude added 27 cents, reaching $74.23 per barrel.
