Equity markets declined Monday amid weakness in global indices. The S&P BSE Sensex tumbled 671 points, or 0.93 per cent, to settle at 71,355. The Nifty50, on the other hand, ended at 21,513, down 198 points or 0.91 per cent.
State Bank of India (SBI), Nestle India, HUL, Axis Bank, Asian Paints, M&M, ITC, TCS, ICICI Bank, Tech M, Wipro, Kotak Bank, HDFC Bank, Tata Steel, and IndusInd Bank were the top lareg-cap laggards of the day, declining between 1 per cent and 2 per cent.
The broader markets, too, felt the pain with the BSE MidCap and SmallCap indices dipping 0.87 per cent and 0.36 per cent, respectively.
Among sectors, the Nifty PSU Bank index dropped 2.3 per cent, the Nifty FMCG index 1.7 per cent, and the Nifty Bank index 1.5 per cent. Media index was the sole winner, up 0.32 per cent.
So far in the first week of 2024, FIIs net bought shares worth Rs 3,290 crore. On the other hand, domestic mutual funds were net sellers of nearly Rs 7,900 crore.
“The year-end rally which took the Nifty up by around 14% from the 2023 October lows, is slowly running out of steam. The major challenge for the rally comes from the mother market US which is showing signs of weakness. The concern in the US now is that the market expectation of a rate cut in March may not materialise since the labour market continues to be tight and the unemployment data is lower than expected. Inflation coming under control means that the rate hiking cycle is over and the Fed pivot is imminent. But the market will be disappointed if the rate cut doesn’t happen in March,” says Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Global Cues
Elsewhere in Asia, Hang Seng tumbled nearly 2 per cent, and Shanghai was down almost 1 per cent. Straits Times and Kospi were flat, while Taiwan advanced 0.5 per cent.
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