Why Did Sensex and Nifty End Flat Despite IT Gains?
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Synopsis
On December 18, Indian stock markets concluded on a muted note as gains in IT stocks were overshadowed by losses in other sectors. While Sensex and Nifty showed fluctuations, analysts express concerns about market trends, highlighting a potential breakdown at crucial levels.
Key Takeaways
- Market ended flat with IT gains failing to offset broader losses.
- Sensex closed 78 points lower at 84,482.
- Losses attributed to auto, metal, and pharma sectors.
- Analysts warn of potential breakdown below 25,700.
- IT index rose over 1 percent despite overall market decline.
Mumbai, Dec 18 (NationPress) The Indian stock markets wrapped up Thursday's trading session on a tepid note as the gains in information technology stocks could not compensate for the declines in automobile, metal, and pharmaceutical sectors.
The Sensex experienced significant fluctuations throughout the day, ranging up to 542 points. It reached an intra-day low of 84,238 before climbing to a peak of 84,780.
However, momentum waned in the latter half, leading the index to close 78 points lower at 84,482.
This marks the fourth consecutive session in which the Sensex has ended negatively, accumulating a loss of approximately 785 points over the past four trading days.
Meanwhile, the Nifty also retreated from its high of 25,902, finishing slightly down by 3 points at 24,815.55.
“The market trend remains weak, with the 25,700 level appearing at risk of a breakdown,” analysts commented.
“A significant breach below 25,700 could initiate a rapid next phase of correction. Resistance is noted around 25,900,” they added.
IT stocks provided crucial support for the market, with TCS being the leading gainer among Sensex stocks, surging nearly 2 percent.
Tech Mahindra and Infosys both saw gains of around 1.7 percent. Adani Ports, HCL Technologies, and Axis Bank also finished the day positively.
Conversely, Sun Pharma was the largest laggard, declining 2.7 percent after the US drug regulator categorized the inspection outcome of its Baska facility as Official Action Indicated.
Shares of Tata Steel, Power Grid, Asian Paints, Larsen & Toubro, and NTPC also ended lower.
In the broader market, mid-cap stocks remained stable, while small-cap stocks dipped 0.3 percent.
The market breadth was negative, with nearly 2,500 shares1,644 advancing stocks on the BSE.
Sector-wise, the IT index increased by over 1 percent, indicating robust buying interest in technology stocks.
In contrast, the power sector fell by 1 percent, while automobile stocks decreased by approximately 0.5 percent during the session.
“Looking forward, the markets will closely monitor US core inflation and jobless claims data, along with interest rate decisions from the BoE, ECB, and Bank of Japan for clearer directional cues,” experts remarked.
Point of View
The Indian stock market's performance reflects a broader economic sentiment. The continuous decline in the Sensex raises concerns among investors, signaling the need for careful monitoring of market trends and external economic indicators.
NationPress
18/12/2025
Frequently Asked Questions
What caused the losses in the Indian stock market?
The losses were primarily due to declines in the automobile, metal, and pharmaceutical sectors, which overshadowed gains in IT stocks.
How much did the Sensex drop?
The Sensex dropped by 78 points, closing at 84,482.
Which sector performed the best during the session?
The IT sector outperformed, with TCS being the top gainer among Sensex stocks.
What should investors watch for in the coming days?
Investors should monitor US inflation data and interest rate decisions from major central banks for potential market impacts.
