The Indian stock market exhibited a bearish trend today, with the Sensex closing at 85,394.55, reflecting a decline of 0.37%. The broader indices also showed weakness, as the Nifty 50 slipped 0.46% to 26,067.30, indicating a challenging trading environment for investors.
Sector performance varied significantly, with the Information Technology sector emerging as the sole gainer. In contrast, the real estate sector suffered the steepest decline, down 1%. Overall, market sentiment was impacted by corporate developments, including leadership changes at Oil and Natural Gas Corporation (ONGC) and a significant stake sale involving ITC Hotels.
The Indian Rupee remained under pressure, trading at 90.06 per US dollar, slightly down from the previous close of 89.99. Analysts noted that despite expectations of a 25 basis point rate cut by the US Federal Reserve, the rupee’s performance is likely to be hampered by India’s widening trade deficit and sluggish foreign portfolio inflows.
Key Market Movers and Corporate Announcements
In terms of stock performance, shares of Hindalco Industries, Tech Mahindra, and TCS led the gainers, providing some cushion against the overall market decline. Conversely, major losses were recorded by Bajaj Finance, Asian Paints, and Maruti Suzuki, reflecting cautious investor sentiment in blue-chip stocks.
ONGC’s stock faced selling pressure despite the reappointment of Arun Kumar Singh as Chairman and CEO for another year, effective from December 7. The stock traded at Rs. 240.90, down 0.19%. Trading volumes were notably lower, indicating reduced investor activity, with volumes dropping 71.93% compared to the five-day average.
Issues surrounding InterGlobe Aviation added further strain to the market as its shares plunged over 4% due to ongoing flight disruptions. The Directorate General of Civil Aviation (DGCA) highlighted planning lapses and sought clarification from the airline’s CEO, raising concerns about operational efficiency.
Corporate Developments and Market Outlook
Significant corporate announcements influenced market dynamics. ICICI Prudential AMC revealed plans for a Rs. 10,603-crore IPO, set to open for subscription from December 12 to 16. The price band is expected to be between Rs. 2,061 and Rs. 2,165 per share.
In notable transactions, affiliates of British American Tobacco sold a 9% stake in ITC Hotels valued at approximately Rs. 3,856 crore. HCL Capital emerged as a major buyer, acquiring a 7% stake valued at Rs. 2,998 crore. Meanwhile, Tata Consumer is reportedly nearing a significant buyout of Danone’s operations in India, strengthening its position in the nutrition sector.
Gold investment trends also showed a decline, with inflows into India’s gold exchange-traded funds totaling $379 million in November, marking a 55% decrease from the previous month. Despite this slowdown, year-to-date inflows have reached a record $3.43 billion.
The India Volatility Index (VIX) rose by 4%, indicating growing uncertainty among traders regarding the market’s near-term direction.
Investors are expected to adopt a cautious approach as they await the outcome of the upcoming US Federal Reserve meeting, which will likely influence foreign capital flows and overall market sentiment. The mixed results from today’s trading highlight the ongoing challenges within the Indian market, balancing corporate developments against broader economic pressures.