The Sensex and Nifty indices started the day on a positive note but gave up most of their gains within an hour of opening on December 26, 2024. This comes ahead of the monthly Futures and Options (F&O) expiry, marking the final monthly expiry of the year. Trading volumes remained subdued, reflecting the year-end holiday season as investors wrapped up their books for the year.

Market Performance Overview

At 10:14 AM IST, the Sensex was up by 24.95 points or 0.03%, trading at 78,497.82, while the Nifty was up by 21.70 points or 0.09%, trading at 23,749.35. Despite the initial gains, broader markets faced pressure, with the Nifty mid and small-cap indices trading 0.5% lower. The advance-to-decline ratio stood at 1,438 shares advancing, 1,771 shares declining, and 140 shares remaining unchanged.

Expert Analysis

According to Ruchit Jain, Vice President of Technical Research at Motilal Oswal, the markets are likely to consolidate in a narrow range as we approach year-end. He noted that the broader market trend remains positive, with the current correction being a healthy part of an ongoing uptrend rather than a shift to a bearish phase. However, risks such as rising bond yields and a strong dollar index could weigh on market sentiment, as emerging markets generally share an inverse correlation with the dollar.

Sectoral Performance

In early trade, the Nifty PSU Bank and private bank indices climbed nearly 1% each, driven by strong performances from HDFC Bank, SBI, and ICICI Bank. Auto stocks also extended their gains for the second consecutive session, with Maruti Suzuki, M&M, and Tata Motors leading the charge. Other sectors such as Nifty FMCG, Oil and Gas, and Consumer Durables saw modest gains of up to 0.3%. However, the Nifty Realty index lagged, dipping 0.4%.

Stock-Specific Highlights

BPCL shares rose nearly 2% after emerging as the lowest bidder for a 150 MW solar PV power project by NTPC. Panacea Biotec’s share price rallied 5% following a Letter of Award from UNICEF for the supply of 115 million doses of its bivalent oral polio vaccine. UltraTech Cement also saw gains after acquiring a 26% equity stake in Clean Max Sapphire and increasing its stake in India Cements to 55.49%, making it a subsidiary.

Market Sentiment and Key Levels

Sameet Chavan, Head of Technical and Derivative Research at Angel One, highlighted that the sentiment remains weak, with intraday recoveries facing selling pressure. The 23,900–24,000 zone has acted as a significant resistance level, while the 23,600–23,500 range serves as immediate support. A break beyond the resistance zone is required to spark positive momentum as we head into the new year.

FAQs

1. What caused the Sensex and Nifty to lose their gains today?

The Sensex and Nifty indices lost their early gains due to subdued trading volumes ahead of the monthly F&O expiry and year-end holidays. Additionally, the absence of major triggers and cautious investor sentiment contributed to the market’s lackluster performance.

2. Which sectors and stocks performed well today?

The banking sector, particularly PSU and private banks, performed well, with HDFC Bank, SBI, and ICICI Bank leading the gains. Auto stocks like Maruti Suzuki and Tata Motors also saw positive momentum. On the other hand, the Nifty Realty index was the sole laggard, dipping 0.4%.