Thursday, December 14, 2023

Stock Market Ends in Red Amid Weak Global Cues

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Amidst a backdrop of unfavorable global cues, the Indian stock market concluded in the negative territory. International markets experienced significant upheaval, causing ripples across global financial hubs and affecting Indian equities.

At the close of trading, the Sensex reported a decline of 323.09 points, settling at 65,505.32, while the Nifty also ended in negative territory, closing 109.55 points lower at 19,528.75. Among the Nifty companies, there were 12 advances and 37 declines, highlighting the widespread pressure on the market.

Notable gainers among the Nifty firms included Bajaj Finance, Larsen & Toubro (LT), Titan, Bajaj Finserv, and Adani Ports, indicating resilience in select sectors. On the other hand, key losers at the closing bell included ONGC, Eicher Motors, Maruti, Hindalco, and Dr. Reddy.

In the midst of these market fluctuations, the World Bank maintained its GDP growth forecast for India in the financial year 2023-24 at 6.3 percent, underscoring the nation’s resilience in the face of a challenging global environment.

Dhruv Sharma, a senior economist at the World Bank, stated, “Our team expects India’s growth in this fiscal year, 2023-24, to be 6.3 percent. This number remains unchanged from our previous projection, which was issued six months ago. We anticipate that growth will be supported by robust private investment and anticipate strength in the services sector. The moderation from last year’s growth rate of 7.2 percent is primarily due to moderating consumption and challenging external conditions.”

Persistent negative sentiment in global markets weighed heavily on Indian stock indices, particularly impacting sectors such as Oil and Gas, Automobiles, and Pharmaceuticals.

Varun Aggarwal, founder and managing director of Profit Idea, noted, “Nifty closed in the red today in line with expected global sentiments. Oil & Gas, Automobiles, and Pharma shares dragged the index down.” He also cautioned traders to exercise caution and avoid overnight positions in the current global sentiment.

Throughout the trading session, the Nifty made two attempts to breach the crucial 19,500 level but ultimately held above that threshold at the close. The presence of substantial put writing at the 19,200-19,300 levels indicated a cautious trading sentiment and provided some support.

Analysts emphasized the importance of closely monitoring market behavior in the face of ongoing weak global sentiments and recommended risk-defined strategies for market participants. For investors, the decline presented an opportunity to accumulate fundamentally strong stocks on market dips, preferably in a staggered manner.

Key sectors to watch in the medium term included Information Technology, Metals, Financial Services, and Banks, which displayed relative strength amid market turbulence. Despite the day’s challenges, the overall bias for Indian markets remained positive, contingent on the market staying above the key support level of 18,887.

However, the market’s resilience will be tested in the coming days as it navigates the uncertain global landscape.

Also Read: World Bank Holds India’s Projected GDP Growth for 2023-24 Steady at 6.3%
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