Market Bloodbath: PSU Banks, Energy, and Metals Take a Hit – Will the Downtrend Continue?

Nifty Midcap and Smallcap plunge. Get the inside scoop on today's key movers

Market Update at 4:00  PM:
On Monday, benchmark indices closed on a negative note. The Sensex declined by 1.59 per cent to 77,964, while the Nifty 50 dropped 1.62 per cent to 23,616. The broader market also witnessed declines, with the Nifty Midcap down 2.7 per cent at 56,366 and the Nifty Smallcap lower by 3.2 per cent at 18,425.

Market volatility rose, as indicated by the India VIX, which surged 15.58 per cent to 15.65, reflecting increased market uncertainty.

All sectors ended in the red, with Nifty PSU Banks, Nifty Metal, and Nifty Energy being the worst performers.

Among stocks, APOLLOHOSP, TITAN, and TATACONSUM were the Top Gainers, while ITC, TATASTEEL, and TRENT were the Top Losers.

The market breadth was deeply negative, with 220 stocks advancing compared to 2,188 stocks declining, indicating bearish sentiment.

Market Update at 12:30 PM:
During the trading session, benchmark indices showed a negative trend. The Sensex dropped by 1.22 per cent, and the Nifty 50 fell by 1.21 per cent. In the broader market, the Nifty Midcap declined by 1.90 per cent, while the Nifty Smallcap dipped by 2.11 per cent.

India VIX rose 13.22 per cent, trading around 15.33, indicating heightened volatility.

European markets were poised to open positively on Monday. The FTSE 100 was predicted to decline slightly by 4 points to 8,220, while Germany's DAX was set to gain 50 points to reach 19,953. France's CAC was expected to rise by 22 points to 7,296, and Italy's FTSE MIB was projected to climb 113 points to 34,308. No major earnings or economic data releases were scheduled for Europe on Monday.

Sectorally, all indices were trading in the red, with Nifty PSU Banks, Nifty Metal, and Nifty Energy leading the declines.

Top gainers included APOLLOHOSP, TITAN, and TATACONSUM, while ITC, TATASTEEL, and BPCL were the major laggards in the Nifty 50.

Market breadth remained weak, with 249 stocks advancing against 2,174 stocks declining.

Market Update at 9:45 AM:
Markets opened cautiously. The Sensex slipped 0.07 per cent to trade at 79,155.71, while the Nifty 50 remained flat at 23,961.70.

Broader indices reflected mixed sentiment, with the Nifty Midcap 150 dipping 0.44 per cent to 21,321.30, and the Nifty Smallcap 250 falling 0.39 per cent to 17,901.15.

The India VIX rose by 6.85 per cent to 14.50, reflecting mild caution in the market.

Among sectoral indices, Nifty IT led the gains, while Nifty PSU Banks, Nifty Metal, and Nifty Energy struggled.

Top gainers in the Nifty 50 included BAJFINANCE, TITAN, and INFY, while ITC, TATASTEEL, and KOTAKBANK were the major losers.

Market breadth remained bearish, with 537 stocks advancing against 1,776 stocks declining.

Pre-Market Update at 8:30 AM:
On Friday, Wall Street closed sharply higher, driven by strong gains in technology stocks. Investors entered the new year with optimism about potential Federal Reserve rate cuts and looser regulatory policies under the new administration.

The Dow Jones Industrial Average rose 339.86 points (0.80 per cent) to 42,732.13. The S&P 500 gained 73.92 points (1.26 per cent) to 5,942.47, while the Nasdaq Composite surged 340.88 points (1.77 per cent) to 19,621.68.

Asian markets traded mixed on Monday, following Wall Street’s recovery. While most indices moved higher, Japan’s Nikkei fell by 1 per cent.

GIFT Nifty signaled a positive opening for Indian markets, with trends indicating a rise of 72 points (0.30 per cent), as Nifty futures traded near the 24,132 level.

On January 3, bears dominated Dalal Street, with the Nifty nearing the critical 24,000 mark. Selling pressure hit IT, Pharma, and Banking stocks, but buying in Media and Oil & Gas sectors limited losses.

By the end of the session, the Sensex dropped 720.60 points (0.90 per cent) to 79,223.11, while the Nifty fell 183.90 points (0.76 per cent) to 24,004.75.

The US Dollar Index stood at 109.01, with the yen trading near 157 per dollar.

Crude oil prices extended their longest rally in over a year, with Brent crude hovering near $77 per barrel.

Foreign Institutional Investors (FIIs) were net buyers on January 3, purchasing equities worth ₹4,227 crore. Domestic Institutional Investors (DIIs) also net bought ₹820 crore, marking their 13th consecutive session of net purchases.

Stocks under the F&O ban today include Manappuram Finance and RBL Bank.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.