The Indian stock market opened on a weak note today, December 13, as global cues weighed heavily on investor sentiment. Both the S&P BSE SENSEX and the NIFTY50 indices saw significant declines in early trade, with metal stocks emerging as the biggest losers. Here’s a detailed look at why the market is down today and the factors influencing this downturn.
Table of Contents
Market Overview: SENSEX and NIFTY50 Performance
At 9:36 AM, the S&P BSE SENSEX was trading at 80,775.91, down 514 points or 0.63%. Similarly, the broader NIFTY50 index was at 24,401.85, down 147 points or 0.6%. Out of the 50 stocks on the NIFTY50 index, 40 were in the red, while only 10 managed to stay in positive territory.
The top five losers on the NIFTY50 were Tata Steel, JSW Steel, Shriram Finance, Hindalco, and IndusInd Bank, with metal stocks taking the hardest hit. On the other hand, the top gainers included BPCL, Bharti Airtel, Adani Enterprises, Adani Ports, and HUL, which managed to buck the trend despite the broader market weakness.
Why Market Is Down Today?
Global Cues Dragging Markets Down
The weak performance of the domestic market can largely be attributed to unfavorable global cues. Asian markets were under pressure as a strong US dollar dampened risk sentiment. Long-term US Treasury yields are on track for their biggest weekly rise this year, as expectations for deep interest rate cuts in 2025 have diminished.
Adding to the concerns, a report from the US Labor Department showed that producer prices rose more than expected in November. While service costs moderated, indicating a broader disinflationary trend, the unexpected rise in unemployment claims raised questions about the resilience of the US labor market.
In China, a high-level meeting in Beijing pledged to increase debt and boost consumption. However, the lack of concrete details on new stimulus measures failed to lift Chinese equity markets. As a result, China’s blue-chip index dropped 0.7%, and Hong Kong’s Hang Seng fell 1.2%. Japan’s Nikkei also declined by 1%, though it remains on track for a weekly gain of 0.9%.
On Wall Street, US stocks closed lower overnight as investors booked profits from the Nasdaq’s recent rally to record highs. However, Nasdaq futures rose 0.4% in Asian trading, offering some hope for a recovery.
Broader Market and Sectoral Performance
The broader market also faced significant pressure, with both mid-cap and small-cap indices trading in the red. The BSE MidCap index was down 418 points or 0.87%, while the BSE SmallCap index fell 583 points or 1%.
All sectoral indices were trading in negative territory, with the BSE METAL index leading the decline, down over 2%. Metal stocks, including Tata Steel and Hindalco, were the biggest losers, reflecting weak global demand and concerns over slowing economic growth.
Stocks in the News
- CRISIL: Shares of CRISIL were trading nearly 2% higher after the company announced an investment of ₹33.25 crore to acquire a 4.08% stake in Online PSB Loans. This move highlights CRISIL’s focus on expanding its digital footprint.
- Tata Motors: Shares of Tata Motors were trading slightly lower at ₹782.10 apiece. The automaker announced a price hike of up to 2% for its trucks and buses, effective January 1, 2025, citing rising input costs. The increase will vary across models and variants.
Key Takeaways
The market’s decline today is primarily driven by weak global cues, including concerns over US interest rates, disappointing Chinese economic measures, and profit-booking in global markets. Domestically, the pressure on metal stocks and broader market indices has added to the negative sentiment.
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FAQs
1. Why is the market down today?
The market is down today due to weak global cues, including rising US Treasury yields, concerns over US labor market resilience, and a lack of concrete stimulus measures from China. Domestically, metal stocks have been the biggest losers, dragging the indices lower.
2. Which sectors are performing the worst today?
All sectoral indices are trading in negative territory, with the metal sector being the worst performer. The BSE METAL index is down over 2%, reflecting weak global demand and economic concerns.
In conclusion, the Indian stock market’s decline today reflects a combination of global and domestic factors. While global uncertainties continue to weigh on investor sentiment, the performance of specific sectors like metals has further exacerbated the downturn. Investors are advised to remain cautious and keep an eye on global developments for further market direction.
