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At the market open on Monday, BSE Sensex and Nifty50, started lower, tracking weak global cues
Sensex Today
Sensex Today: Benchmark indices BSE Sensex and NSE Nifty50 ended the first trading session of the week in the negative. The 30-share Sensex fell by 450.94 points, or 0.57%, closing at 78,248.13. The index moved between 79,092.70 and 78,077.13 during the session.
Similarly, the NSE Nifty50 dropped by 168.50 points, or 0.71%, to settle at 23,644.90, with the index trading between 23,915.35 and 23,618.90.
The bears dominated the day, with 38 out of 50 Nifty50 stocks ending lower. Bharat Electronics, Hindalco, Tata Motors, Trent, and Wipro were the biggest losers, falling by as much as 2.32%. On the flip side, Adani Enterprises, HCL Tech, Tech Mahindra, Shriram Finance, and IndusInd Bank were among the 11 Nifty50 stocks that gained, rising up to 7.26%.
In the broader markets, the Nifty Midcap100 index closed 0.37% higher, while the Nifty Smallcap100 index fell by 0.62%.
The India VIX, a gauge of market volatility, increased by 5.55%, ending at 13.97 points.
Sector-wise, the day saw mixed performance. Nifty PSU Bank, Auto, Financials, Media, Metals, and Realty were the worst performers, with losses up to 1.87%. Conversely, the Nifty FMCG, IT, Pharma, Healthcare, and Telecom indices bucked the trend, posting gains of up to 1.62%.
Global Cues
MSCI’s broadest index of Asia-Pacific shares, excluding Japan, fell by 0.2%, although it remains 16% higher for the year.
Japan’s Nikkei slipped 0.75%, but still shows a 20% gain for 2024.
South Korea’s Kospi gained 0.65%, while the Kosdaq advanced by 1.5%.
Australia’s ASX200 decreased by 0.43%, while Hong Kong’s Hang Seng index rose by 0.17%.
In mainland China, the CSI 300 declined by 0.15%, and the Shanghai Composite fell by 0.14%.
U.S. futures were also lower, with both S&P 500 and Nasdaq futures down by 0.1%. Wall Street experienced a broad-based sell-off on Friday, though trading volumes were below average, at about two-thirds of the daily norm. The S&P 500 dropped by 1.11%, the Nasdaq Composite by 1.49%, and the Dow Jones Industrial Average by 0.77%.
Despite the recent decline, the S&P 500 is still up 25% for the year, and the Nasdaq has gained 31%, leading to stretched valuations when compared to the risk-free return of Treasuries. Investors are expecting a 10% growth in earnings per share in 2025, compared to a 12.47% anticipated rise in 2024, according to LSEG data.
Meanwhile, 10-year Treasury yields have risen to an eight-month high of 4.631%, finishing the year about 75 basis points higher than where they began, despite the Federal Reserve’s 100 basis points in rate cuts.
Bond investors are also concerned about increasing supply, especially with President-elect Donald Trump promising tax cuts without concrete plans to address the budget deficit. Trump is expected to issue at least 25 executive orders on various issues, including immigration, energy, and crypto policy, upon taking office on January 20.
The widening interest rate differentials have supported demand for the U.S. dollar, which has gained 6.5% against a basket of major currencies this year.
The strength of the dollar has been a headwind for gold prices, although the metal is still up 28% for the year, trading at $2,624 an ounce.
Oil prices have had a challenging year, with concerns over demand, particularly from China, keeping prices in check. OPEC+ has repeatedly extended its agreement to limit supplies. Brent crude fell by 37 cents to $73.80 per barrel, while U.S. crude dropped 17 cents to $70.43 per barrel.
