January 3, 2024
New Delhi, India
Stock Market Highlights
The Indian stock market is grappling with a second consecutive session of decline, driven by a combination of global market trends and sector-specific challenges. Here’s a breakdown of the key factors influencing the market.
Market Performance:
The Sensex and Nifty indices opened the trading session with minimal changes but quickly slipped into the red. At 3 pm, the Sensex was down by 433.28 points at 71,459.20, while the Nifty fell 119.25 points to 21,546.55.
Both Sensex and Nifty closed at 71,386.40 down −506.08
Sectoral Struggles:
The IT and financial sectors are identified as the primary culprits behind the market’s downturn. Nifty IT witnessed the most significant decline, sliding by 2%, while Nifty Metal also fell by over 1%.
Global Influence:
The Indian market is not immune to the subdued trend in global markets. Asian equities, particularly Chinese tech stocks, followed a drop in US stocks, leading to a fading risk appetite.
Also Read: USDINR Analysis: Eyes on FOMC Minutes Today
Economic Factors in Focus:
Investor attention is now directed towards the release of Fed minutes for the December policy meeting. Futures are suggesting expectations of aggressive policy easing, with speculation of six rate cuts in 2024. Oil prices, after a recent dip, saw marginal gains with US crude futures at $70.43 a barrel and Brent at $75.86 a barrel.
Adani Group’s Legal Victory:
In a positive turn, Adani Group shares rose following a Supreme Court ruling. The court expressed confidence in the Securities and Exchange Board of India’s investigation, dismissing doubts and giving the regulator three months to complete the inquiry.
Read here: Adani Group Verdict Day: Supreme Court Decision on January 3
Conclusion:
As the market remains sensitive to global cues, sectoral challenges, and specific stock movements, investors are closely watching economic data releases and the Federal Reserve’s minutes for potential insights. The legal ruling in favor of Adani Group has injected a sense of confidence amid the market’s uncertainties.
Learn more about the Indian stock market
Disclaimer:
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