Market Volatility on December 24: Sensex and Nifty Experience Mixed Outcomes

The Indian stock market experienced a lackluster session on December 24, ending the day with minor losses amidst a backdrop of volatility. While investors showed interest in shares from the auto, oil & gas, and FMCG sectors, the metal and PSU banking sectors faced significant selling pressure.

Market Performance Overview

On this day, the benchmark Sensex concluded at 78,472.87, marking a decline of 67.30 points or 0.09%. Similarly, the Nifty 50 index finished the trading session at 23,727.65, down by 25.80 points or 0.11%. The broader market reflected mixed outcomes; while the BSE midcap index remained flat, the smallcap index managed to gain 0.3%.

Sectoral Performance

The auto sector stood out as a key performer with Tata Motors leading the charge, rising by 1.92%. In addition, the FMCG sector also witnessed notable gains. However, sectors like metal and PSU banks struggled due to considerable profit booking, negatively impacting their performance.

Vinod Nair, Head of Research at Geojit Financial Services, pointed to the subdued atmosphere in the market, highlighting ongoing volatility and investor caution. He remarked, "The domestic market concluded flat ahead of the holiday, with metal and power stocks dragging performance while FMCG and auto sectors gained from recent corrections. The near-term market trajectory hinges on the outcome of Q3 results and the Union budget, but caution prevails due to a strong dollar, high bond yields, and concerns over rate cuts. The INR's plunge to an all-time low has further heightened caution."

Notable Stock Movements

Within the Nifty, Power Grid Corp, JSW Steel, and Titan Company featured among the primary losers, while Tata Motors, Adani Enterprises, and BPCL enjoyed gains. The Nifty Auto was the best-performing sector for the day, up 0.57%, contrasting with the Nifty Metal sector, which lagged behind with a decline of 0.83%.

Market Outlook

As the market approaches the Christmas holiday, analysts express a cautious outlook, noting the absence of a clear directional trend. Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented, "The market is in a range-bound phase, currently awaiting a breakout in either direction. The immediate breakout levels for the bulls stand at 23,850 and 78,800."

With the market scheduled to remain closed on December 25 for the Christmas holiday, traders will be keenly observing developments that may arise after the holiday.

Market, Volatility, Stocks