 "Sensex dips 1048pts, 26 out of 30 stocks end in red; realty, metals drag")
The key benchmark indices – Sensex, Nifty were under a bear attack on Monday, with the BSE Sensex closing 1,048 points or 1.36 per cent lower at 76,330.01, while the NSE’s Nifty50 ending 345 points or 1.47 per cent at 23,085.95.
Top gainers and losers
26 out of 30 bluechip stocks finished off in the negative territory on the BSE Sensex with Zomato being the top loser falling 6.5 per cent, followed by Power Grid (down 4 per cent), Adani Ports (down 4 per cent), Tata Steel (down 3.4 per cent), and NTPC (down 3.2 per cent).
That apart, IndusInd Bank Axis Bank, HUL, and TCS were among the gainers.
Meanwhile, the index heavyweights that pulled the BSE Sensex down on Wednesday in terms of contribution included HDFC Bank contributing 175 points. Other index giants included ICICI Bank (114 points), Zomato (92 points) and L&T (71 points).
Meanwhile on the NSE’s Nifty50, 46 out of the 50 stocks faced declines with the losers being Adani Enterprises (down 6.2 per cent), Trent (down 5.4 per cent), BPCL (down 4.3 per cent), Bharat Electronics (down 4.3 per cent) and Power GRid (down 4 per cent).
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On the other hand, the top gainers included TCS, IndusInd Bank, Axis Bank and HUL.
All sectoral indices on the NSE platform ended in the red. Among others, Nifty Realty index ended down by 6.47 per cent, and Nifty Media by 4.54 per cent, while Nifty PSU Bank, Metal, Consumer Durables, and Healthcare indices ended down by over 3 per cent each.
Broader markets also mirrored the benchmarks as the Nifty Smallcap100, and Nifty Midcap100 indices ended down by over 4 per cent each.
What’s behind the market fall?
The market is expected to remain under pressure due to significant headwinds, say experts, with the recent jolt to hopes of multiple rate cuts by the US Federal Reserve in 2025.
US jobs data surprised with 2.56 lakh job creations in December, surpassing the expected 1.65 lakh. This has reduced the likelihood of multiple rate cuts in 2025 to just one, said Dr V K Vijayakumar, chief investment strategist, Geojit Financial Services
Furthermore, with US unemployment at a low 4.1 per cent, there is no need for any economic stimulus, he said. On the other hand, foreign institutional investors have have withdrawn Rs 22,194 crore till the 10th of January from Indian equities this month, driven by expectations of a weak earnings season, a steady rise in the US dollar, and concerns over tariff war during Donald Trump's presidency. Read more
However, Vijayakumar said that with US 10-year bond yields above 4.7 per cent, FIIs are likely to continue selling.
Global markets
The decline in the Indian stocks came amid a similar show in the Asia-Pacific markets that traded lower on Monday following Friday's US jobs report, which dampened hopes for early interest rate cuts by the Federal Reserve.
China’s CSI 300 slipped 0.22 per cent, while Hong Kong’s Hang Seng Index dropped 1.6 per cent. South Korea’s Kospi fell 0.85 per cent, with the Kosdaq declining 0.53 per cent. Japan’s markets were closed for a holiday. In Australia, the S&P/ASX 200 was down 1.17 per cent.
US stocks also tumbled on Friday after stronger-than-expected jobs data. The Dow Jones Industrial Average fell 696.75 points, or 1.63 per cent, to close at 41,938.45. The S&P 500 dropped 1.54 per cent to 5,827.04, and the Nasdaq Composite slid 1.63 per cent to 19,161.63. These losses pushed the major indices into negative territory for 2025.
Tech levels to watch
According to technical pundits, the area between 23,177 and 23,355 will continue to matter on the way down for Nifty50, while immediate resistance stands at 23,600.
“Interestingly, even though the percentage of stocks in the Nifty above the 200-day average has fallen to 34, the 14-day momentum isn't oversold yet, which could mean more weakness could be ahead of us. For the day, let's watch 23238 on the downside which is critical,” said Akshay Chinchalkar, head of research at Axis Securities.