Mumbai (Maharashtra) [India]: The Indian stock market opened on a weak note, with the Nifty 50 index declining by 16.50 points or 0.07% to 23,796.90, while the BSE Sensex slipped by 61.17 points or 0.08% to 78,637.90.
Market experts attributed the subdued performance to weak buying sentiments and global uncertainties, dashing hopes for a year-end rally.
Global and Domestic Sentiments Weigh on Markets
Ajay Bagga, a banking and market expert, remarked, “It looks like a dull week ahead for Indian markets with Santa Claus deciding market investors did not deserve a rally this year. Asian markets are soft, influenced by tech-led declines in US markets. With Donald Trump set to take office in January, markets are awaiting clarity on his policy directions.”
Sectoral indices on the NSE also reflected bearish sentiment, with all sectors opening in the red. Out of the Nifty 50 stocks, only 14 advanced, while 36 declined.
Top Gainers and Losers
- Top Gainers: Adani Enterprises, Adani Ports, Bharti Airtel, ITC, and Nestle India.
- Top Losers: BPCL, ONGC, Hindalco, and JSW Steel.
Key Market Levels and Trends
Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty 50’s support levels are between 23,500 and 23,640, with resistance at 24,150 for bulls to regain control. He added that historically, the index has risen 71% of the time in the final two days of the year, albeit with modest returns.
Sunil Gurjar, a SEBI-registered research analyst, highlighted critical levels for 2025. “Nifty 50 is trading near strong resistance at 23,800. For a bullish trend in 2025, breakouts above 24,650 and 25,300 are crucial. Conversely, a breakdown below 23,300 could signal a significant downtrend,” Gurjar explained.
Global Market Overview
In other Asian markets:
- Japan’s Nikkei 225, Hong Kong’s Hang Seng, and Taiwan’s Weighted Index were trading lower.
- South Korea’s KOSPI saw a marginal uptick.
Broader Concerns for 2024
Indian markets have faced significant challenges since October, including heavy foreign institutional investor (FII) selling exceeding ₹1.70 lakh crore in the last three months, geopolitical tensions in the Middle East, and rising bond yields.
The outlook remains cautious as traders prepare to navigate these headwinds in the coming year.