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Sensex, Nifty End Flat in Muted Year-End Trade; Auto, Metals Shine

Indian benchmark indices, Sensex and Nifty, closed nearly flat in subdued year-end trading. Sectoral performance was mixed, with auto and metal stocks gaining while IT and realty sectors declined. Market experts attributed the muted sentiment to persistent foreign institutional investor outflows, thin volumes, and a lack of fresh positive triggers despite strong domestic industrial data. Analysts expect the market to remain range-bound and sideways in the near term, with a stock-specific approach recommended.

Key Points: Sensex Flat in Year-End Trade; Auto, Metals Gain | Market Wrap

  • Flat closing for Sensex & Nifty
  • Auto & metal sectors gain
  • IT & realty sectors decline
  • FII outflows & mixed global cues weigh
2 min read

Sensex, Nifty remain flat in thin year-end trade

Indian stock indices closed flat amid thin year-end trade. Auto and metal sectors gained, while IT and realty declined. Experts cite FII outflows and mixed global cues.

"Indian equity markets ended flat in a lacklustre session amid mixed global cues, overshadowing strong November IIP data... - Siddhartha Khemka, Motilal Oswal"

New Delhi, December 30

Indian stock indices closed Tuesday's trade largely on a steady note, likely owing to thin trade ahead of the year's closing.

Sensex closed the day at 84,675.08 points, down 20.46 points, while Nifty closed at 25,938.85 points, down 3.25 points, respectively. On the sectoral front, Nifty auto, metal, PSU bank, traded sharply higher in the green, while Nifty IT, realty, chemicals traded deep in the red, NSE data showed.

Domestic benchmark equity indices opened on a subdued note on Tuesday, with market sentiment remaining cautious amid a lack of positive triggers. Experts expect markets to stay range-bound with a negative bias, driven by FPI outflows, monthly index expiry and mixed global cues.

Market participants remained guarded despite strong domestic macro data.

"Indian equity markets ended flat in a lacklustre session amid mixed global cues, overshadowing strong November IIP data showing 6.7 per cent growth--the highest in 25 months. Muted year-end activity and persistent concerns over FII outflows kept investors on the sidelines," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Vinod Nair, Head of Research, Geojit Investments Limited, said that the domestic market remained volatile, despite supportive global cues and selective value buying.

"A stronger rupee provided some respite, yet overall sentiment stayed cautious amid persistent FII outflows. Sector-wise, while auto stocks gained on robust IIP data, metal stocks gained due to higher metal prices enabling better realisations. Similarly, PSU banks advanced on improved asset quality. Looking ahead, the market is anticipated to stay sideways, awaiting more pronounced outcomes from US-India trade talks and the Q3 results calendar," Nair added.

According to Ajit Mishra - SVP, Research, Religare Broking Ltd, participants are likely to stay in a wait-and-watch mode in search of the next directional trigger, with global cues remaining mixed and trading volumes subdued.

"In the interim, a stock-specific approach remains preferable, with banking, auto and metal stocks continuing to display relative strength, while other sectors contribute on a rotational basis," Mishra added.

- ANI

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Reader Comments

P
Priya S
Auto and metal stocks doing well is a positive sign for manufacturing. But why is IT still in the red? As someone working in the sector, the global slowdown fears are real. Hoping for a better Q3 results season to turn things around.
R
Rohit P
Year-end mein sab thoda slow ho jata hai. Traders bhi holiday mood mein honge. Main toh SIP karta rahunga, these small dips and flats don't matter in the long run. Consistent investment is the mantra.
S
Sarah B
Interesting to see the divergence. PSU banks gaining on asset quality is a welcome change from the NPA stories of the past. Shows the reforms are working at the ground level, even if the headline indices are flat.
V
Vikram M
With all due respect to the experts quoted, this analysis feels very surface-level. Everyone is just saying "mixed cues" and "wait-and-watch". Would be helpful to know what specific triggers, domestic or global, we should actually be watching for in early January.
K
Kavya N
The stronger rupee helping is a double-edged sword na? Good for imports and inflation control, but our IT exports suffer. Market is correctly reflecting that complexity. It's not just about the Sensex number.

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