India’s benchmark indexes fell marginally at the start of the week, dragged by information technology and auto stocks, in thin volume trade ahead of the end of 2024.
The Nifty 50 shed 0.16% to 23,775.1 points as of 9:56 a.m. IST, while the BSE Sensex was down 0.14% to 78,585.56. Seven of the 13 major sectors fell.
The broader, more domestically focussed smallcaps and midcaps were little changed.
Indian shares close down
“Persistent concerns such as sustained foreign institutional investor outflows, diminishing expectations of US rate cuts in 2025 and a lack of major domestic triggers amid the year-end are weighing on market sentiment,” said Mandar Bhojane, research analyst at Choice Broking.
India’s benchmark indexes rose about 1% last week after dropping about 5% in the prior week, their worst fall in 30 months, as the Federal Reserve’s projection of fewer rate cuts in 2025 lowered the appeal of emerging market assets.
Asian shares edged lower on Monday as high Treasury yields challenged lofty Wall Street equity valuations while underpinning the US dollar near multi-month peaks.
Information technology companies, which earn a significant share of their revenue from the US, shed 0.7% on the day, amid sustained foreign outflows due to elevated Treasury yields.
Auto shares lost 0.5% ahead of the monthly sales data due later in the week.
Among individual stocks, JSW Energy climbed 6.6% after the power producer announced a definitive agreement to acquire renewable power company O2 Power Midco Holdings.
Vodafone Idea rose 2.6% after telecom department dispensed with the requirement of submitting bank guarantees for spectrum acquired through auctions.
Electric two-wheeler maker Ola Electric Mobility lost 3% following the resignations of two senior executives.
Choice Broking’s Bhojane expects the market to remain subdued in the near term as investors await triggers such as monthly auto sales data and the December quarter earnings.
Source: Brecorder
