Market Wrap: Markets Extend Losing Streak; Nifty 50 Hits Seven-Month Low

The benchmark indices witnessed significant declines, with the Sensex tumbling 1.36 per cent to settle at 76,330.01 and the Nifty 50 sliding 1.47 per cent to close at 23,085.95, marking its lowest level in seven months.

Market Update at 3:30 PM: Indian equity markets extended their losing streak, closing sharply lower amid heightened volatility. The benchmark indices witnessed significant declines, with the Sensex tumbling 1.36 per cent to settle at 76,330.01 and the Nifty 50 sliding 1.47 per cent to close at 23,085.95, marking its lowest level in seven months. The rupee also recorded its steepest fall in nearly two years, weighed down by a stronger dollar and rising crude oil prices.

In the broader indices, the Nifty Midcap 150 plunged 3.92 per cent to end at 19,458.30, while the Nifty Smallcap 250 nosedived 4.00 per cent to settle at 16,159.90. Market volatility spiked significantly, with the India VIX surging 7.25 per cent to 16.00, reflecting deep investor apprehension.

Among sectoral indices, Nifty Private Bank, Nifty FMCG, and Nifty IT managed to limit their losses, declining by 0.87 per cent, 1.22 per cent, and 1.37 per cent, respectively. However, Nifty Realty emerged as the worst performer, plummeting 6.47 per cent, followed by Nifty Media and Nifty Metal, which fell 4.54 per cent and 3.77 per cent, respectively.

In the Nifty 50, TCS led the gainers with a modest increase of 0.78 per cent, followed by IndusInd Bank and Axis Bank, which gained 0.58 per cent and 0.46 per cent, respectively. On the flip side, Adani Enterprises plunged 6.21 per cent, followed by Trent and BPCL, which declined 5.40 per cent and 4.39 per cent, respectively.

The market breadth was overwhelmingly negative, with only 326 stocks advancing, while a staggering 2,525 stocks declined on the NSE, underscoring the widespread selling pressure across sectors.

Market Update at 1:05 PM: The equity markets extended their losses through the session, with the selloff intensifying across broader indices. The Sensex is currently down by 0.96 per cent, trading at 76,639.62, while the Nifty 50 has declined by 1.04 per cent to 23,187.05.

In the broader indices, the Nifty Midcap 150 dropped sharply by 2.92 per cent, settling at 19,661.30, and the Nifty Smallcap 250 saw a steep decline of 3.06 per cent, closing at 16,318.05. Market volatility continues to rise, as reflected by the India VIX, which has surged 6.82 per cent to 15.93, indicating heightened uncertainty and caution among investors.

Among the sectoral indices, Nifty IT, Nifty FMCG, and Nifty Private Bank have been the most resilient, showing comparatively smaller declines. On the other hand, Nifty Realty, Nifty Consumer Durables, and Nifty Media have emerged as the biggest underperformers, reflecting significant pressure.

Within the Nifty 50, Axis Bank, TCS, and IndusInd Bank led the gainers' list. Conversely, the biggest laggards were Trent, Apollo Hospitals, and Adani Enterprises.

The overall market breadth remained weak, with only 329 stocks advancing, compared to a substantial 2,364 stocks declining, underscoring the bearish sentiment that has gripped the markets.

Market Update at 9:45 AM: The equity markets opened on a cautious note this morning, extending their downward trajectory, with widespread pressure observed across broader indices. Currently, the Sensex is down by 0.85 per cent, trading at 76,720.88, while the Nifty 50 has declined by 0.90 per cent to stand at 23,220.75.

In the broader market indices, the Nifty Midcap 150 slid by 1.48 per cent to 19,952.50, and the Nifty Smallcap 250 recorded a steep fall of 1.66 per cent, settling at 16,553.60. Market volatility has risen sharply, with the India VIX surging by 7.22 per cent to 15.99, reflecting heightened uncertainty.

Among the sectoral indices, Nifty FMCG, Nifty IT, and Nifty Private Bank emerged as the Top Gainers. On the other hand, Nifty Realty, Nifty Consumer Durables, and Nifty Media were the major underperformers, showcasing broad-based selling.

Within the Nifty 50, the top performers included IndusInd Bank, followed by Britannia and Axis Bank. Conversely, the laggards were led by Apollo Hospitals followed by Adani Enterprises and Grasim.

The overall market breadth remained skewed towards declines, with 2,037 stocks declining, compared to only 397 advancing, signifying persistent bearish sentiment.

Pre-Market Update at 8:15 AM: US markets ended sharply lower on Friday, as a strong jobs report heightened inflation concerns, keeping the Federal Reserve cautious about rate cuts. The Dow Jones Industrial Average dropped 696.75 points or 1.63 per cent to close at 41,938.45. The S&P 500 fell 91.21 points or 1.54 per cent to 5,827.04, while the Nasdaq Composite declined 317.25 points or 1.63 per cent to 19,161.63.

Indian markets are expected to open on a weak note on January 13, with GIFT Nifty pointing to a decline. As of 7:00 AM IST, Nifty futures were trading at 23,338, down significantly.

On January 10, Indian markets closed lower after a volatile session, with selling across most sectors. However, IT stocks outperformed on the back of TCS' better-than-expected Q3 earnings. The Sensex ended the day down 241.30 points or 0.31 per cent at 77,378.91, while the Nifty slipped 95 points or 0.40 per cent to settle at 23,431.50.

US bond yields moved higher on Monday. The 10-year Treasury yield rose 149 basis points to 4.75 per cent, while the 2-year yield surged 270 basis points to 4.37 per cent.

The US dollar index held steady at 109.66, supported by rising Treasury yields and ongoing optimism about the resilience of the US economy.

WTI crude futures climbed to their highest levels in over three months, trading above USD 75 per barrel. The rally was driven by expectations of stricter US sanctions on Russian crude, which could impact supplies to major importers like China and India.

Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 2,254.68 crore on January 10, marking the sixth consecutive session of outflows. Domestic institutional investors (DIIs), however, bought equities worth Rs 3,961.92 crore on the same day.

Manappuram Finance, Bandhan Bank, Hindustan Copper, L&T Finance, and RBL Bank remain under the F&O trading ban today.

Disclaimer: The article is for informational purposes only and not investment advice.