Stock markets begin 2024 on a flat note amid high volatility
The 30-share index reached a new intraday record high of 72,561.91 before settling at 72,271.94, marking an increase of 31.68 points or 0.04 per cent compared to the previous close
Mumbai: The stock markets commenced the New Year on a tepid note, experiencing a subdued trading session characterized by considerable volatility. The benchmark Sensex concluded the day with modest gains of 31 points amidst a highly fluctuating market scenario on Monday. The uptrend was bolstered by an upswing in energy, services, and telecom shares.
The 30-share index reached a new intraday record high of 72,561.91 before settling at 72,271.94, marking an increase of 31.68 points or 0.04 per cent compared to the previous close. Throughout the day, it oscillated between a low of 72,031.23 and a high of 72,561.91. Similarly, the broader Nifty hit its all-time intraday high of 21,834.35, ultimately closing higher by 10.50 points or 0.05 per cent at 21,741.90. Notably, 22 Nifty shares advanced while 28 experienced declines.
Market analysts attributed the volatile nature of key stock indices to traders' indecision, citing the absence of global cues as a contributing factor. Vinod Nair, Head of Research at Geojit Financial Services, commented, "The market displayed strength driven by optimism surrounding potential rate cuts, global inflation alleviation, and softer bond yields. However, profit booking was evident at higher levels due to persistent concerns over disruptions in the Red Sea, posing short-term risks to global supply chains and freight costs."
He further emphasized the significance of this week's focus on the FOMC minutes, which are anticipated to provide insights into potential rate cuts in 2024. In the previous year, the BSE benchmark surged by 11,399.52 points or 18.73 per cent, while the Nifty climbed 3,626.1 points or 20 per cent.
On the Sensex, companies such as Nestle, Tech Mahindra, HCL Technologies, Tata Motors, Wipro, and ITC emerged as winners, whereas Bharti Airtel, Mahindra & Mahindra, Bajaj Finserv, HDFC Bank, NTPC, and Hindustan Unilever faced declines. The mid and small-cap segments retained positive momentum, buoyed by a favorable macro-outlook, although private banks witnessed a reversal in trends.
Within the broader market, the BSE smallcap gauge rose by 0.73 per cent, while the midcap index advanced by 0.54 per cent. Noteworthy gains were observed in the energy, telecommunication, services, commodities, oil & gas, and industrials sectors, whereas sectors like auto, bankex, and consumer durables lagged behind.
Asian and European markets remained closed on Monday for the New Year holiday, while the US markets concluded marginally lower on Friday. Exchange data revealed that Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,459.12 crore on the previous trading day.
On the final trading day of 2023, the BSE benchmark witnessed a decline of 170.12 points or 0.23 per cent, settling at 72,240.26, while the Nifty closed at 21,731.40, registering a decrease of 47.30 points or 0.22 per cent.
