Markets Trade Dull, Financial Continues To Suffer While Benchmark Indices Trade Lower

Indian benchmark indices concluded in a red trading zone on the week's first trading session. Banking and Finance stocks continued to suffer losses after the central bank’s tightening guidelines regarding the lending rules.

The National Stock Exchange (NSE) Nifty 50 index closed lower after a flat opening. Benchmark index Nifty 50 closed at 19,694 or 37.80 points lower, while the S&P Bombay Stock Exchange (BSE) Sensex closed lower at 65,655.

Among Nifty stocks, pharma stock Divislab sustained the highest gain of 2 per cent followed by Bharti Airtel and HCL Technology gains of 1.49 per cent and 1.24 per cent respectively. 

In contrast, Adani Enterprises was the top loser and shredded 2.67 per cent, Bajaj Finance continued to suffer after the central bank’s new lending rules and lost 2.11 per cent and M&M extended its lost to 2.04 per cent in the index.

Among the 13 sectoral indices, Nifty IT rallied highest and moved up 0.6 per cent with L&T Technology and Persistent gaining 1.72 per cent and 1.47 per cent respectively.

“Markets lingered in negative territory in a listless trading session and extended its losing streak amid selling in select frontline stocks. Investors continue to trade cautiously amid uncertainty over the ongoing West Asia conflict, and global economic slowdown concerns. While markets struggled to capitalise on positive global cues, investors also shrugged off hopes for more stimulus from China,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Technically, Nifty needs to reclaim the 19,889 mark to unleash a fresh upside, while the biggest support is placed at the 19,471 mark, suggested Tapse.

Moreover, the more domestically focussed mid-caps gained marginally and continued its winning streak for the consecutive fifth day, whereas small-caps gave up its gains and lost 0.07 per cent.

“Despite this, there has been a consistent uptrend in small and mid-cap stocks, driven by the investments of high net worth individuals, retail investors, and domestic mutual funds, leading to small-caps and mid-caps outperforming the benchmark indices on Monday, small-cap index recording a 0.4 per cent increase. Notably, they have surged by over 9 per cent and 7 per cent, respectively, in the current month,” said Shrey Jain, Founder and CEO SAS Online.

Among financial stocks, Axis Bank, Bandhan Bank, IDFC First Bank, and Federal Bank fell up to 1 per cent due to bearish sentiment.

Bandhan Bank shares also hit 1 per cent down as the private lender would be delisted from the S&P BSE 100 index on 18 December.

IDFC First Bank also traded as a laggard due to the bank's heavy exposure to personal loans and credit cards.

Among Nifty 50 mid-cap stocks, Power Finance gained 2.53 per cent, while REC rallied 2.05 per cent and Indian Hotels rose 2.04 per cent.

Conversely, Balkrishna India, Idea and TVS Motor 5.65 per cent, 2.75 per cent and 1.62 per cent respectively.

Among individual stocks, Talbros Automotive Components rose 20 per cent to a new high after receiving orders worth Rs 5.80 billion.

Tata Investment Corporation rose 15.2 per cent to a record high ahead of the Tata Technologies IPO this week.

Investors are looking for fresh clues on the Fed's interest rate trajectory in the minutes of its most recent meeting, which are scheduled this week.