Market Wrap: ONGC, Reliance Lead Gains, But Indices Slide as Broader Market Struggles

Nifty, Sensex End Lower Amid Weak Sentiment

Post Market Update at 3:45 PM:
The markets wrapped up the day on a negative note. The Sensex dipped by 0.06 per cent to close at 78,148, while the Nifty 50 dipped by 0.08 per cent, settling at 23,688.

In the broader indices, the Nifty Midcap 100 dipped by 1.05 per cent to 56,270, and the Nifty Smallcap 100 dipped by 1.65 per cent, reaching 18,365. The India VIX dropped by 1.32 per cent to 14.47, indicating a further decline in market volatility.

Among the sectoral indices, Nifty IT led the outperformers with a gain of 0.6 per cent, followed by Nifty FMCG, which advanced by 0.44 per cent. On the flip side, Nifty MID SELECT, Nifty Pharma, and Nifty Fin Services emerged as the key laggards.

In the Nifty 50 index, ONGC topped the gainers’ list, soaring by 2.78 per cent, followed by RELIANCE and TCS, which rose by 2.06 per cent and 1.92 per cent, respectively. Meanwhile, APOLLOHOSP, TRENT, and SHRIRAMFIN were the Top Losers, sliding by 3.87 per cent, 2.12 per cent, and 1.87 per cent, respectively.

Market breadth displayed strong bearish sentiment, with 699 stocks advancing against 1,674 declining on the NSE, highlighting the negative momentum across sectors.

Market Update at 9:30 AM:
Despite weak global cues, Indian indices opened marginally higher on January 8 but turned negative soon after. At this hour, the Sensex has dipped by 0.23 per cent, trading at 78,033.04, while the Nifty 50 is down 0.17 per cent, standing at 23,669.

In the broader indices, the Nifty Midcap 100 is down by 1.09 per cent, trading at 56,254, and the Nifty Smallcap 100 has dipped 1.08 per cent, standing at 18,481. Volatility showed signs of easing, with the India VIX declining 0.27 per cent to 14.64, indicating reduced uncertainty.

Among sectoral indices, the top performers were Nifty Energy and Nifty Bank, while the laggards included Nifty MID SELECT and Nifty Realty.

Within the Nifty 50, the Top Gainers were Dr. Reddy’s Laboratories (DRREDDY), ONGC, and Reliance Industries (RELIANCE). On the other hand, the biggest losers were Shriram Finance (SHRIRAMFIN), Trent (TRENT), and Bharat Electronics Limited (BEL).

Market breadth reflects negative sentiment, with more stocks declining than advancing.

Pre-Market Update at 8:30 AM:
Wall Street closed lower on Tuesday as strong economic data raised concerns about a potential inflation rebound, which might prompt the Federal Reserve to slow its pace of monetary policy easing.

The Dow Jones Industrial Average fell 178.20 points (0.42 per cent) to 42,528.36.
The S&P 500 lost 66.35 points (1.11 per cent) to 5,909.03.
The Nasdaq Composite dropped 375.30 points (1.89 per cent) to 19,489.68.

Asian markets presented a mixed trend. The Nikkei declined by 0.5 per cent, while the Kospi gained 1 per cent. Regional stocks mirrored Wall Street’s losses, driven by a sharp selloff in Treasuries amid expectations that the Federal Reserve may delay rate cuts until after July due to inflation risks.

The GIFT Nifty indicates a flat start for the Indian market, with a modest rise of 10 points (0.04 per cent), with Nifty futures trading around the 23,768.50 level.

On January 7, Indian equity indices recovered from their previous session's losses, closing higher after a volatile trading session. Broad-based buying across sectors, excluding IT, supported the recovery.

The Sensex gained 234.12 points (0.30 per cent) to close at 78,199.11.
The Nifty 50 added 91.85 points (0.39 per cent) to end at 23,707.90.

The dollar strengthened on Wednesday, while the yen approached intervention levels. Strong U.S. economic data pushed yields higher, dampening expectations of near-term Federal Reserve rate cuts.

Oil prices edged higher, supported by tighter supplies from Russia and OPEC nations and a surprising increase in U.S. job openings, signaling robust economic activity.

Brent crude rose 32 cents (0.42 per cent) to USD 77.37 per barrel as of 01:35 GMT.
West Texas Intermediate (WTI) crude climbed 42 cents (0.57 per cent) to USD 74.67 per barrel.

Foreign Institutional Investors (FIIs) were net sellers on January 7, offloading equities worth ₹1,491 crore. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers, investing ₹1,615 crore, continuing their trend of robust inflows.

Hindustan Copper, Manappuram Finance, and RBL Bank are under F&O trading bans today.

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