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Sensex rebounded 250 points from lows, while Nifty recovered from 25,878 intraday dip.
Auto and metal stocks rose up to 3%, cushioning benchmarks during a volatile session.
FIIs sold ₹2,760 crore, while DIIs bought ₹2,644 crore, limiting further downside pressure.
Stock market today showed strength, bouncing back from early losses on value buying and strength in auto and metal shares. Sensex traded 48 points lower at 84,647, while the Nifty slipped 14 points to 25,929 at press time. However, buying interest emerged, lifting Sensex by over 250 points from its day's low.
Market breadth remained weak throughout the session, with more stocks declining than advancing on NSE. This weakness came after the Indian stock market fell for three straight sessions, weighed down by persistent foreign fund outflows and thin year-end trading volumes. Here’s what happened in detail based on Moneycontrol Live Updates.
The stock market today saw mixed sectoral trends. Nifty Auto index gained nearly 1%, with Mahindra & Mahindra share price leading gains in the Nifty 50 pack, rising 1.3%. Maruti Suzuki and Bajaj Auto also traded higher, offering crucial support to the benchmarks.
Shriram Finance emerged as a major gainer, jumping 2% after receiving its first credit rating upgrade following the MUFG deal. CARE Ratings upgraded the company's credit rating for non-convertible debentures and subordinate debt worth around Rs. 2,500 crore from 'CARE AA+' to 'CARE AAA.'
BSE Metal index advanced 0.6%, with NALCO, Jindal Stainless, and NMDC leading gains with rises of 2-3%. Hindalco and JSW Steel also traded higher, benefiting from a recovery in commodity prices.
Among heavyweight stocks, Reliance Industries provided limited positive support on the Sensex, alongside State Bank of India, Bharti Airtel, Larsen & Toubro, and Titan. These stocks helped cushion broader losses in the share market news.
On the other hand, InterGlobe Aviation (IndiGo) stock fell over 1.5 % and emerged as the biggest drag on the Sensex. Banking and IT stocks also weighed on the indices, with HDFC Bank, ICICI Bank, Infosys, and HCL Tech accounting for much of the index decline. Max Healthcare, SBI Life, and UltraTech Cement also traded lower.
Also Read: Stock Market LIVE Today: Sensex Below 84,700, Nifty Slips Under 25,950
Bharat Electronics announced receiving additional orders worth Rs. 569 crore since December 12, covering radars, tank overhauls, communication equipment, and fire control systems. The stock was up by 0.36% on the news.
Lupin entered into an exclusive license, supply, and distribution agreement with China's Gan & Lee Pharmaceuticals for Bofanglutide. It is a novel fortnightly GLP-1 receptor agonist used for treating type 2 diabetes and weight management.
Waaree Energies appointed Jignesh Rathod as CEO-Designate with immediate effect, replacing Amit Paithankar, who will step down on May 15, 2026. The company's subsidiary also commenced operations at two solar inverter manufacturing facilities with a combined capacity of 3.05 GW.
Foreign Institutional Investors (FIIs) continued their selling streak for the fifth consecutive session on December 29, offloading equities worth Rs. 2,760 crore. However, Domestic Institutional Investors (DIIs) provided support by purchasing equities worth Rs. 2,644 crore, partially offsetting foreign outflows.
Indian rupee strengthened 3 paise to 89.95 against the US dollar in early trade, buoyed by a weaker greenback and strong industrial production data.
India's industrial output grew at a two-year high of 6.7 % in November, driven by strong performances in mining and manufacturing sectors. The sharp acceleration in factory output came after growth of just 0.5% in October.
The stock market today also saw support from positive Asian markets, with Hong Kong's Hang Seng index and Japan's Nikkei 225 trading higher. US futures indicated a positive opening after Wall Street ended lower on December 29.
Trading volumes remained light due to year-end holidays, with participants preferring selective exposure rather than broad-based positions. Tuesday also marked the weekly and monthly expiry of Nifty derivatives contracts, which often brings higher volatility.
Also Read: Stock Market Today: Sensex Slips 270 Pts, Nifty Below 26,000; Hindustan Copper Jumps 7%
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the year-end weakness doesn't indicate a directional change. "A clear directional change will happen only early in the new year when large institutions are back in action. Weakness in the market can be used to nibble at high-quality large caps," he said. In the near term, market participants are likely to remain selective, awaiting clearer cues on global flows, interest rates, and policy developments in the new year.
1. What caused the Indian Equity Market to rebound from its early morning losses?
The Indian equity markets were able to recover from their early morning losses due to "value buying" that took place subsequent to the early sell-off. Automobile and metal sector stocks saw the majority of gains and also provided price support for the benchmark indices; however, the overall market remained somewhat downside-biased based on investor concerns.
2. What were the leading sectors in the Indian Equity Markets today
The automobile and metal sectors were the leading sectors within the Indian equity markets today. Stocks of Mahindra & Mahindra, Maruti Suzuki, and Bajaj Auto all experienced gains today. The metal sector stocks of NALCO, NMD,C and Jindal Stainless all experienced gains today in response to an increase in metal prices in the Commodities markets.
3. Why did market breadth remain weak even with the positive performance of the benchmark indices?
Market breadth remained weak despite the increase in the benchmark indices today because there were significantly more stocks that declined than had gains within the market. Banks, the IT sector, and the healthcare sector experienced continued selling pressure, indicating that today's recovery was driven by selective buying as opposed to broad-based buying.
4. What was the activity of foreign and domestic investors during the trading session?
Foreign Institutional Investors continued to sell large volumes of equities in today's trading session, extending the current streak of selling. However, Domestic Institutional Investors stepped in during this selling wave as buyers through the early part of the trading sessio,n and this helped cushion the market and limited deeper losses.
5. What is the near-term outlook for the Indian stock market?
The near-term outlook remains cautious due to thin volumes and ongoing foreign outflows. Experts suggest selective buying in high-quality large-cap stocks while waiting for clearer global and institutional cues in the new year.
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