Sensex, Nifty Flat End After Choppy Session; BEL, M&M 2% Each Down
The day when Sensex and Nifty ended up flat after a choppy session, BEL and M&M went down by 2%. The rupee reached its lowest point at 90/USD. The Meesho IPO was fully subscribed, and the global markets were mixed.
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The Indian stock market the day was gradually ending up as the Sensex and the Nifty 50. closed flat, with the investors looking forward to the policy announcement of the Reserve Bank of India. The booking of profits prevented the benchmark indices from going further, even though the indices had been at record highs earlier this week.
The S&P BSE Sensex fell by 31 points (0.04%) to 85,106.81, and the NSE Nifty 50 closed down by 46 points (0.18%) at 25,986, which was the fourth day in a row for the index to record small declines. The trends in different sectors were not the same: the state-owned banks and the automobile stocks were the main losers, with BEL and Mahindra & Mahindra losing 2% each, while private banks, pharma, and media stocks were the only ones that profited a bit.
In global markets, Japan’s Nikkei climbed more than 1%, while China had to face the pressure. Crude prices went up slightly because of the concerns over the Russia-Ukraine conflict and the global supply surplus. The Indian rupee hit a new low of 90.19 per dollar, which is a sign of continuous foreign outflows and the deteriorating market sentiment.
Key Highlights:
IPO Updates: On the first day of the Meesho IPO, which is backed by SoftBank, the IPO was 2.35 times oversubscribed, and the Vidya Wires IPO saw retail participation almost double. NephroPlus is set to raise Rs 353 crore through its IPO on December 10.
Corporate News: Tata Capital resolved the regulatory infractions with SEBI for an amount of Rs 14.4 lakh. JSW Steel revealed a collaboration with Japan’s JFE Steel for a Rs 15,750-crore joint venture. Vikram Solar selected Arun Mittal to head its energy storage division.
Commodities & Forex: Silver price reached a record high of Rs 1,84,727 per kilo; gold went up to Rs 1,30,766 for 10 grams. The oil prices had a slight rise, while the dollar lost value around the world, which was the continuation of its ninth consecutive session of decline due to the U. S. rate cut expectations.
Market analysts are of the opinion that investors should be cautious ahead of the Reserve Bank of India's policy review and that both banks and PSU stocks will have volatile trading. IT stocks, however, had a small positive impact on the indices by counterbalancing the losses in other sectors.
The erratic performance of the market is due to profit-taking, uncertainty in the global market, and pressure on the currency, while the participants are waiting for a clearer signal from the central bank.
