Consolidation continues with potential pre-Budget rally anticipated in key sectors.
Mumbai, December 13: Indian stock markets extended their downward trend on Friday, influenced by weak global cues and a cautious stance ahead of the U.S. Federal Reserve’s anticipated rate cut announcement.
The Nifty 50 index opened at 24,498.35 points, recording a decline of 50.35 points or 0.21 percent, while the BSE Sensex index began trading at 81,212.45 points, dipping by 77.51 points or 0.10 percent.
Market experts highlighted the consolidating trend in Indian markets, attributing it to global uncertainties and the upcoming Fed decision. Despite the sluggish start, optimism remains for a potential rally in railway, defense, and other key sectors during the pre-Budget phase.
Ajay Bagga, Banking and Market Expert, commented, “Weak global cues are weighing on Indian markets today. The frequent Chinese stimulus announcements have had limited real impact, adding to the cautious sentiment. Indian markets are in a range-bound consolidation mode. This trend is likely to persist until the Fed rate cut event. Post that, we anticipate a pre-Budget rally with Railways, Defense, Industrials, IT, and Financials showing strength heading into the year-end.”
Sectoral indices on the NSE showed declines across most major sectors, with the exception of Nifty Oil & Gas and Nifty Realty, which posted gains during the opening session. In the Nifty 50 index, 14 stocks advanced while 36 stocks declined. Top gainers included Eicher Motors, BPCL, Adani Enterprises, Nestle India, and ICICI Bank, while Tata Steel, JSW Steel, and Hindalco were among the top losers.
Akshay Chinchalkar, Head of Research at Axis Securities, provided a technical perspective, stating, “The index is currently trading between its 50- and 100-day averages. The 50-day average is expected to offer support around 24,430, a critical zone spanning 24,360 to 24,445. Immediate support lies at 24,500, which bulls must protect on a closing basis.”
In broader Asian markets, mixed trends were observed. Japan’s Nikkei 225 index declined by 1.24 percent, Hong Kong’s Hang Seng index dropped 1.46 percent, while Taiwan’s Weighted Index posted a marginal gain of 0.18 percent. South Korea’s market remained in the green, showcasing resilience amidst the global uncertainty.
As Indian markets consolidate, all eyes remain on the Federal Reserve’s upcoming announcement, which could set the tone for year-end market movements and potential sectoral rallies.