Indian Equity Market Starts Steady, Nifty Below 24,700

Mumbai, Dec 9 (NationPress) The Indian equity market commenced the week on a steady note on Monday, with significant selling pressure evident in Nifty's FMCG sector during the initial trading hours.

As of around 9:27 am, the Sensex was recorded at 81,748.46, reflecting a gain of 39.34 points or 0.05 percent, while the Nifty was at 24,696.10, up by 18.30 points or 0.07 percent.

The overall market sentiment showed a positive trend. On the National Stock Exchange (NSE), 1,450 stocks were trading in the green, contrasted by 498 stocks in the red.

Market analysts suggest that the short-term outlook remains mildly bullish.

“The rally that has propelled the Nifty up by 3.2 percent over the past two weeks has been led by key banking stocks, which are currently fairly valued and possess the potential to drive the market further,” they noted.

“The return of Foreign Institutional Investors (FIIs) is another encouraging sign for large-cap stocks. This ongoing rally could push the Nifty Bank to new record highs, thus elevating the Nifty further,” experts stated.

The Nifty Bank index saw an increase of 23.45 points or 0.04 percent to reach 53,532.95. The Nifty Midcap 100 index traded at 58,824.65, up by 120.05 points or 0.20 percent, while the Nifty Smallcap 100 index stood at 19,543.60, gaining 51.50 points or 0.26 percent.

Akshay Chinchalkar from Axis Securities commented, "The Nifty's decline on Friday created a small bar that fell within Thursday's larger range, forming an ‘inside day’. This indicates volatility compression, but as volatility is cyclical, a trending move can be anticipated soon."

“At the current levels, the Nifty faces resistance from the 50- and 100-day moving averages along with an Ichimoku barrier, making the 24,800 - 24,900 zone quite challenging. Support levels are noted at 24,445 and 24,360,” he added.

Among the Sensex constituents, L&T, Tech Mahindra, NTPC, Bajaj Finance, JSW Steel, HDFC Bank, Sun Pharma, and Adani Ports were the leading gainers. In contrast, Hindustan Unilever Limited, Infosys, M&M, Axis Bank, and Ultra Tech Cement faced losses.

In the Asian markets, stocks in Jakarta and Japan were trading higher, whereas those in China, Hong Kong, Seoul, and Bangkok were in the red. In the US markets, the S&P 500 and Nasdaq concluded with gains of 0.25 percent and 0.81 percent, respectively, while the Dow Jones Industrial Average fell by 0.28 percent compared to the previous session.

On December 6, Foreign Institutional Investors (FIIs) divested equities worth Rs 1,830.31 crore, while Domestic Institutional Investors purchased equities valued at Rs 1,659.06 crore.