Stock Market Today: Sensex Falls 472 Points to 84,630, Nifty at 25,813 as Asian Paints Slips 3.96%

Overview:

• While Sensex and Nifty fell sharply in early trade, the indices bounced back from the day's lows to show some resilience despite negative global cues.

• The broader market continued to slide with the midcap and smallcap indices down 1 % and sustained selling for multiple sessions.

• Foreign investors extended their selling streak, while domestic investors stepped in with strong buying that helped to limit deeper losses.

Indian stock market today began on a volatile note, as benchmark indices started the day on a weak note but managed to recover from the day's low. In mid-morning trade, the Sensex traded down 472 points, or 0.56%, to 84,630. Nifty lost 148 points or 0.57% at 25,813.

Though opening in the red, the indices recovered close to 380 points from their respective lowest levels. It reflects weak global cues and cautious sentiment ahead of the US Federal Reserve policy decision scheduled for December 10. Traders are pricing in an 87 % chance of a 25-basis-point rate cut by the Fed. Let’s see how individual stocks performed today based on Moneycontrol Live Updates. 

Sectoral Performance

All sectoral indices traded in the red on the stock market today. The auto, metal, realty, and consumer durables sectors dropped around 1 %. BSE IT index extended the slide for the second straight day. Major losers included TCS share price dipped 1.48%. At the same time, HCL Tech stock decreased by 1.18%, while Wipro dropped by 1.13%. 

BSE Metal index was down 1.08 % and the Oil & Gas index 0.66 %. The top losers in the oil and gas space were Petronet LNG, Oil India, GAIL, and BPCL. The consumer durables index was down 0.9 % with Asian Paints shares, the biggest loser at 3.64 %.

Broader markets also saw deeper cuts than the benchmark indices. BSE Midcap index was down 1 % and the smallcap index was trading 1 % lower. Nifty Smallcap 100 extended losses into the sixth session, indicating continued selling in smaller stocks as well.

Among the midcap losers, Coforge was down 4.22 %, followed by Cochin Shipyard which fell 3.04 %, and Ola Electric declined 2.52 %. In the small-cap space, Go Digit fell 3.6 %, Hindalco Copper dropped 3.52 %, and Zen Technologies declined 3.13 %.

Most Active Stocks

InterGlobe Aviation became the most active stock on NSE with a trading volume of Rs. 2,035 crore. Volume traded for Reliance Industries stood at Rs. 472 crore, while that for ICICI Bank was Rs. 417 crore. Other active stocks included HDFC Bank, Trent, and SBI.

Solara Active Pharma Sciences jumped 8.59 %, its biggest rise in five months. Brainbees Solutions rose 3.75 %, its best in three months. SpiceJet extended gains for the third straight day after the budget carrier added two Boeing 737 aircraft to its fleet. LT Foods plummeted 6.73 % after reports that the US might impose tariffs on rice exports.

Also Read: Stock Market Today: Sensex at 85,394.55, India VIX Jumps 4%; Hindalco, Tech Mahindra Among Top Gainers

Corporate Announcements

Several companies made important announcements on the stock market today. ICICI Bank executed a share purchase agreement to buy a 2 % stake in ICICI Prudential AMC for Rs. 2,140 crore.

Larsen & Toubro's board approved the transfer of its realty business to subsidiary L&T Realty Properties through a slump sale.

Siemens said it has inked a pact with Innomotics India to sell its Low Voltage Motors and Geared Motors businesses for ₹ 2,200 crore.

Aditya Birla Real Estate said it sold all 492 units of its housing project Birla Pravaah in Gurugram within 24 hours, achieving record sales of ₹ 1,800 crore.

Analysts' Ratings

JP Morgan maintained its 'overweight' rating on Hero MotoCorp with a target of Rs. 6,850 on sustained market share gains and improved dealer confidence. The brokerage also maintained its 'overweight' rating on Apollo Hospitals, with a target price of Rs. 9,400.

Morgan Stanley maintained its 'overweight' rating on Bajaj Finance with an unchanged target price of Rs. 1,195 after the firm announced plans to use AI to boost productivity and reduce credit risk.

HSBC has upgraded Eicher Motors to 'buy' from 'hold' with a target price of Rs. 8,000, and downgraded TVS Motor to 'hold' from 'buy' with a target price of Rs. 4,000.

IPO Updates

The subscription for the IPO of Wakefit Innovations stood at 26 % on Day 2. Retail investors subscribed for 123 % of their reserved portion. Corona Remedies IPO was subscribed 131 % on Day 2, retail portion was subscribed 159 %.

Currency and Volatility

Indian rupee gained 13 paise, trading higher at 89.96 per dollar, compared to the previous close of 90.09, in late morning trade, recovering from opening losses. The rupee had breached the 90 mark on December 8, raising concerns among investors. The India VIX rose 4 %, indicating increased market nervousness.

FII and DII Activity

Foreign Institutional Investors remained net sellers for the third session in a row, selling equities worth Rs. 656 crore on December 8. Meanwhile, Domestic Institutional Investors continued their buying spree, buying shares worth Rs. 2,549 crore on the same day. For the year so far, FIIs have sold Indian equities worth Rs. 2.68 lakh crore, while DIIs have bought Rs. 7.27 lakh crore.

Also Read: US Stock Market Today: NASDAQ 100 & S&P 500 Edge Higher While Bond Yields Rise Ahead of Key Federal Reserve Decision

Investor Outlook

Market experts said the weak sentiment indicates the lack of fresh triggers and investor fatigue following the recent all-time high. The rupee's movement towards 90 per dollar and continued FII selling have added to the cautious mood. Support for Nifty is seen at 25,800-25,850, while resistance lies around 26,100-26,150. Traders are advised to stay selective, using a buy-on-dips approach, and to maintain tight stop losses.

FAQs

1. Why did the stock market fall today?

The market came off today on weak global cues and traders becoming cautious ahead of the US Federal Reserve policy decision. FII selling further added pressure. Though the market recovered from early lows, the overall mood remained cautious.

2. Why were midcap and smallcap stocks under more pressure?

Midcap and smallcap stocks declined more, as usual in times of uncertainty, investors tend to reduce their exposure to high-beta stocks. Due to increasing volatility and continued selling in smaller companies, traders preferred safer large-cap names.

3. How did the Indian rupee perform during the session?

The rupee opened weak but later recovered by 13 paise to trade at 89.96 per dollar. Despite the recovery, the earlier breach of the 90 mark kept traders worried over currency stability.

4. What were the major sectoral trends today?

All major sectors were in the red, including auto, metal, realty, oil & gas, and consumer durables. IT stocks extended their decline for the second day, reflecting weak global tech sentiment and selling by institutional investors.

5. What traders should focus on during the coming sessions?

Traders are advised to keep an eye on global cues, FII and DII activity, and the Fed policy outcome. Support for Nifty lies near 25,800, while resistance is around 26,100. A selective approach with strict stop-losses is advised.