Mumbai, Dec 10: Indian equity markets ended the day on a cautious note, with benchmark indices Sensex and Nifty falling 0.32% each amid investor anticipation of the US Federal Reserve’s monetary policy decision. The Sensex closed at 84,391, down 275 points, while the Nifty settled at 25,758, down 82 points.
From a business perspective, the market displayed mixed sector trends, reflecting cautious investor sentiment:
-
Consumer Durables led declines, down 1.72%, indicating sensitivity to discretionary spending patterns.
-
IT and PSU Bank stocks fell 0.89% and 0.70%, respectively, signaling caution in both domestic and export-driven sectors.
-
Metal and Media stocks bucked the trend, emerging as bright spots, reflecting selective buying in cyclical and high-visibility sectors.
Bank Nifty showed marginal weakness, suggesting a pause in the prevailing uptrend rather than a reversal. Investors are closely monitoring support near 25,700 in Nifty and 58,850 in Bank Nifty for signals of near-term stability or further downside.
Global factors played a significant role: Asian markets declined ahead of the Fed announcement, and FIIs were net sellers to the tune of ₹3,760 crore, while DIIs remained net buyers at ₹6,225 crore, highlighting reliance on domestic liquidity to support market stability.
Analysts note that despite short-term volatility, India’s market fundamentals remain strong, underpinned by corporate earnings growth, domestic demand, and fiscal support. However, external uncertainties such as delays in the US-India trade deal and global rate movements could impact investor sentiment in the near term.
Business Implication:
-
Short-term volatility may present selective buying opportunities in fundamentally strong sectors.
-
Export-linked IT stocks could face pressure if global economic cues turn negative.
-
Domestic consumption-driven sectors like consumer durables may experience stress if market volatility persists.
In conclusion, while global uncertainty tempers market enthusiasm, long-term growth prospects for India’s equity markets remain robust, supported by structural reforms, rising corporate profits, and sustained domestic investment.