Sensex Today: Domestic equities weakended on Tuesday as investors took home profit after solid gains in 2023, rising Covid-19 cases in the country, and mixed trends in Asia.
The S&P BSE Sensex ended at 71,892 levels, falling 379 points or 0.53 per cent, while the Nifty50 shut shop at 21,666, down 76 points or 0.35 per cent.
22 of 30 Sensex stocks and 31 of 50 Nifty stocks ended in the negative zone weighed by Eicher Motors, M&M, Ultratech Cement, L&T, Kotak Bank, LTI Mindtree, Wipro, ICICI Bank, IndusInd Bank, HUL, Tech M, Infosys, Grasim, and HCL Tech.
In the broader markets, the BSE MidCap and SmallCap indices fell over 0.5 per cent in the intraday trade before recouping losses to end flat with a negative bias.
Among sectors, the Nifty Pharma index zoomed 2.5 per cent, followed by the Nifty Media index (0.43 per cent), and the Metal index (0.26 per cent). All other indices dropped in trade led by the Nifty Auto (down 1.26 per cent), the Nifty IT (1.17 per cent), and the Nifty Bank (1 per cent).
Declining dollar and US bond yields provide a favourable global context for equities. FII inflows in 2024 are likely to be huge and have the potential to lift high quality large-caps, particularly in segments like banking where valuations are fair,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“An important trend to watch is the spike in the volatility index VIX to 14.5 which indicates that high volatility is round the corner. Yesterday’s sell off in the last 30 minutes is a warning that at higher levels there can be bouts of big selling,” said Vijayakumar.
Deepak Jasani, Head of Retail Research at HDFC Securities, said, “Nifty formed a triple bottom formation over the past three days in the 21677-21681 band. A breach of this band could take the Nifty down to 21575. On the other hand, 21834 could offer resistance.”
Rupee
The Indian rupee fell 9 paise to $83.30 against the US dollar in early trade amid losses in Asian peers and expectations of subdued portfolio flows. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.2% to 1021.53 level.
Global Cues
Asian shares started the first trading day of the New Year on a steady footing on Tuesday, as investors returning after a holiday lull looked ahead to fresh trading catalysts from key economic releases later in the week.
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