Stock Market Today: Nifty at 25,909, Sensex Falls 294 Points; Wipro and TCS Lead Gainers

Overview

• Sensex and Nifty traded in red despite an IT stock rally led by Wipro, TCS, and Infosys.

• Indian rupee touched a new record low of 90.15 against the US dollar.

• Corporate announcements and strong IPO momentum added to the market fervour. 

Indian stock market today showed mixed sentiments as benchmark indices traded in red zone. Sensex was down 294.92 points at 84,843.35. Meanwhile, Nifty dipped 122.50 points at 25,909.70. Banking stocks were under pressure as Nifty Bank slipped 300.30 points to 58,973.50. The IT sector emerged as the clear winner, as the Nifty IT jumped 347.95 points to 37,889.20. 

Small-cap stocks bore most of the selling pressure, as the BSE Smallcap index slumped 410.52 points. Market breadth continued to remain weak with 1,965 stocks advancing against 747 declining shares on the NSE. Here’s how individual stocks performed today based on Moneycontrol Live Updates. 

Top Gainers and Losers on Nifty 50

Technology stocks dominated the gainers’ list in the share market news today, as Wipro shares surged 1.93 % to Rs. 254.99. It was followed by TCS which jumped 1.81 % to Rs. 3,192.50, Infosys rose by 0.57 % to Rs. 1,569.90, and ICICI Bank rose 0.58 % to Rs. 1,380.90.

On the other hand, Shriram Finance led the decline, falling 2.56 % to Rs. 821.80. Max Healthcare dropped 2.41 % to Rs. 1,090.60, while Jio Financial Services declined 1.95 % to Rs. 298.90. Tata Consumer Products and SBI stock were also among the top losers, down 1.94 % and 1.88 % respectively.

Corporate Developments

A number of key corporate announcements marked the action in the stock market today. Bajaj Finance raised Rs. 1,588 crore by selling nearly 2 % stake in Bajaj Housing Finance through a bulk deal at Rs. 95.3074 per share.

Bank of Maharashtra's Offer for Sale (OFS) saw an overwhelming response on the first day, with subscription reaching 400 % of the base size. The government has invoked a green shoe option to divest an additional 1 % stake at the floor price of Rs. 54 per share.

Adani Enterprises' subsidiary Astraan Defence issued 10.09 crore equity shares to MSM Group S.R.O, thereby reducing its stake from 100 % to 51 %. Separately, Adani Airport Holdings completed the divestment of 25 % stake in World Plate Collective Cuisines.

Indian Energy Exchange's subsidiary, Indian Gas Exchange, announced plans to start the IPO process through an offer for sale by existing shareholders, subject to approvals from respective regulatory bodies.

Also Read: Stock Market Today: Nifty Slips to 26,067, Sensex Down 0.41%; Bajaj Auto Drops 0.96%

IPO Activity

Today's share market news headlined the active participation in the primary market. Meesho's Rs. 5,421.05 crore IPO received full subscription of its retail portion within the first hour of opening on day one. The overall subscription stood at 0.40 times by 11:30 AM, with retail investors subscribing 1.49 times and non-institutional investors at 0.47 times.

The Vidya Wires IPO received 0.25 times subscription in the mid-morning trade session on the first day, with retail investors subscribing to their allocated portion 0.37 times.

Rupee Hits Record Low

Adding to these market concerns, Indian rupee touched a fresh all-time low of 90.15 against the US dollar, from December 2’s close at 89.87. The weakness reflects ongoing pressure from foreign fund outflows as well as the strengthening dollar globally.

Global Market Influence

US markets provided some positive cues. The major indices climbed on December 2 with the Dow Jones up 0.39 % while the S&P 500 and Nasdaq rose 0.25 % and 0.59 % respectively. Technology shares led the rally amid expectations of a Federal Reserve rate cut next week.

Oil prices fell for the second consecutive day, with Brent crude sliding to $62.32 per barrel, while WTI crude fell to $58.52 per barrel, reflecting concerns over weak demand and potential supply increases.

Foreign Institutional Activity

Foreign Institutional Investors continued their selling spree, pulling out Rs. 3,642.30 crore from Indian stock market on December 2. On the other hand, crucial support was provided by Domestic Institutional Investors as they pumped Rs. 4,645.94 crore, which helped cushion the market from losses.

Also Read: US Stock Market Today: Dow Jones Rises 0.2% as Tech & AI Stocks Lift Markets, Bitcoin Recovers & Bond Yields Stabilize Ahead of Fed

Outlook

Going forward, the Indian stock market would have to contend with multiple headwinds: relentless FII selling, a depreciating rupee, and global economic uncertainties. However, strong DII support and good IT performance provide a cushion. Investors will keenly await future Fed decisions and domestic corporate earnings for further direction.

FAQs

1. Why did the Indian stock market trade lower today?

The Indian stock market was lower than the previous day largely as a result of continued pressure on financial stocks. While IT outperformed most of the market, it was not enough to overcome the sell-off in financials and other indices. The drop in the value of the Indian rupee to an all-time low, caused by an influx of quote rate delays and a record dollar value for the US dollar, helped to create more uncertainty in the minds of investors, thereby adding to their cautiousness about investing.

2. Why did IT stocks rise when the rest of the market fell?

There were several reasons including good expectations for earnings and revenue and the lower value of the rupee with respect to other currencies in the region resulting in a larger amount of revenue for many of the companies that primarily export their services (Wipro, TCS, Infosys, etc.) to other countries. The fact that the IT sector had been underperforming so far this year, had caused many retail and institutional investors to turn their attention to the lower risk and more volatility-prone sectors. They are moving into this area to find growth, as well as the increased focus by traders on this area.

3. What caused the rupee to hit a record low today?

As a result of ongoing foreign fund outflows and the higher value of the US dollar, the Indian rupee depreciated against the US dollar to 90.15 today, which was another significant milestone for the rupee. Furthermore, continued uncertainty regarding the Indian economy and major concerns about the Indian economy’s performance in both a domestic and international context contributed to the significant decline of the Indian rupee.

4. How did FIIs and DIIs impact the market trend today?

FIIs sold aggressively and withdrew over Rs. 3,600 crore from the Indian market. The selling pressure from FIIs impacted the indices negatively. However, the DIIs compensated for this by buying strongly, injecting over Rs. 4,600 crore into the market to prevent a further pullback and provide support to key sectors like IT.

5. What should investors be monitoring in the near future?

Investors should focus on the following factors in the near future: the upcoming US Federal Reserve meeting, inflation indicators, currency fluctuations, and earnings announcements from Indian companies. Each of these elements will add to the uncertainty surrounding the future direction of markets and the impact they will have if volatility continues globally. Investors should also keep an eye on FIIs' activities.