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Sensex, Nifty Extend Losses: How Global Cues and Volatility Weigh on Markets

Indian stock markets opened lower again, marking their fourth straight day of losses. Weak signals from Asian markets and caution ahead of a key derivatives expiry are driving the decline. While sectors like auto and pharma are falling, IT stocks are managing to provide some support. All eyes are now on major central bank decisions from Europe and Japan due later today.

Key Points: Sensex Nifty Open Lower Amid Weak Global Cues and Volatility

  • Markets extend losing streak to four sessions amid negative Asian market cues
  • Weekly expiry of Sensex derivatives adds to intra-day trading volatility
  • Auto, pharma, and realty sectors under pressure while IT stocks provide support
  • Global focus on central bank decisions from BoE, ECB, and BoJ meetings
2 min read

Sensex, Nifty open lower amid weak global cues

Indian stock markets fell for the fourth session amid weak Asian cues and weekly expiry volatility. Key support and resistance levels identified by experts.

"Immediate resistance is placed at 25,950–26,000, and a decisive breakout above this zone could open the path toward 26,100. - Market Experts"

Mumbai, Dec 18

Indian stock markets opened on a weak note on Thursday, extending their losing streak to a fourth straight session, as negative cues from Asian markets weighed on investor sentiment.

Traders are also cautious ahead of the weekly expiry of Sensex derivatives, which is adding to intra-day volatility.

At around 9:23 a.m., the 30-share Sensex was trading at 84,434.8, down 124.77 points or 0.15 per cent. The Nifty slipped 22.15 points, or 0.08 per cent, to 25,789.75.

"Immediate resistance is placed at 25,950–26,000, and a decisive breakout above this zone could open the path toward 26,100. On the downside, key support levels are seen at 25,650 and 25,700 in the near term," experts stated.

Heavyweight stocks such as Sun Pharma, TVS Motor, Mahindra & Mahindra, NTPC, Maruti Suzuki, Kotak Mahindra Bank, Tata Steel and Bharat Electronics were among the top losers, falling up to 2 per cent.

On the other hand, IT and select banking stocks provided some support to the market, with Infosys, HCLTech, Tech Mahindra, TCS, SBI and ITC trading in the green.

On the sectoral front, auto, pharma and realty stocks were under pressure, with the Nifty Auto, Nifty Pharma and Nifty Realty indices declining by up to 1 per cent.

In contrast, the Nifty IT index rose nearly 0.9 per cent, while the PSU Bank index gained about 0.25 per cent.

The broader markets also saw mild selling pressure, with the Nifty Midcap index slipping 0.10 per cent and the Nifty Smallcap index down 0.2 per cent.

Globally, investors are closely watching key economic events scheduled for the day.

Market participants are awaiting interest rate decisions from the Bank of England and the European Central Bank, along with inflation and jobless claims data from the United States.

Meanwhile, the Bank of Japan has started its two-day policy meeting and is widely expected to raise interest rates to 0.75 per cent on Friday.

In terms of institutional activity, foreign institutional investors remained net buyers, purchasing shares worth Rs 1,449.22 crore on Wednesday.

Domestic institutional investors also bought equities worth Rs 587.16 crore during the session.

Oil prices moved higher in early trade on Thursday. Brent crude rose 1.29 per cent to $59.68 per barrel, while US West Texas Intermediate crude gained 1.64 per cent to trade at $56.86 per barrel, adding another factor for investors to track during the day.

- IANS

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Reader Comments

P
Priya S
Auto and pharma down again? My portfolio is taking a hit. But the article says support is at 25,650-25,700 for Nifty. Hope we don't test those levels today. 🤞 Time to maybe average down on some quality names if we dip further.
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Aditya G
Weekly expiry adding to volatility, as usual. This is normal market behaviour, nothing to panic about. The broader trend is still positive. Corrections are healthy and provide buying opportunities for savvy investors.
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Sarah B
Watching the BoJ decision closely. A rate hike there could have ripple effects. Interesting to see IT stocks holding up - maybe a sector rotation play is on. The market seems to be in a wait-and-watch mode before the US data.
K
Karthik V
Sun Pharma, M&M, Maruti down... these are heavyweights. When they fall, the index feels it. But good to see SBI and ITC in green providing some support. Market is a mixed bag today. Chalo, let's see how it closes.
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Nikhil C
Respectfully, I feel the media focuses too much on daily ups and downs. For a common investor like me, these short-term fluctuations are just noise. We should focus on the fundamentals of the companies we own and stay invested for the long haul. This constant tracking creates unnecessary anxiety.
M

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