Equity markets ended the first trading session of the week on a cautious note. After ringing the opening bell in red, volatility reigned high across the session today.
The BSE Sensex settled trading a little above 85,200, falling more than 50 points, while the NSE Nifty50 ended the session near 26k, taking a hit of 20 points.
On the 30-share Sensex, HUL, Trent, HCL Tech, Infosys, and Asian Paints emerged among the gainers, while the laggards included M&M, Maruti, Adani Ports, Bajaj Finserv, and Titan.
In the broader markets, the Nifty Midcap Select bled 0.33 per cent. On the other hand, the Nifty Microcap250 climbed 0.49 per cent. Sectorally, the Media index stood out with gains of 1.79 per cent. Meanwhile, the Auto index crashed 0.91 per cent.
Notably, both benchmarks slipped in early trade on Monday morning, amid weak global cues, sustained foreign fund outflows and uncertainty over the proposed India-US trade agreement. Market sentiment remained fragile as investors tracked global developments and awaited key macroeconomic data from major economies, analysts said.
Analysts said the lack of clarity on the India-US trade deal remains a significant overhang. “A major drag on the market continues to be the elusive US-India trade deal, which is impacting India’s exports to the US, widening the trade deficit and contributing to the ongoing depreciation of the rupee,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
WPI Eases In November
Further, the WPI inflation data for November was released today. India’s wholesale inflation showed clear signs of stabilisation in November, with the WPI rising to minus 0.32 per cent from minus 1.21 per cent in October, marking a recovery from a year-low print. While prices at the wholesale level remain in deflation, the data indicates that the sharp price corrections seen earlier in the year, particularly in food items, are beginning to moderate.
Food articles continued to weigh on the index, but the intensity of deflation eased noticeably. Vegetable prices, though still more than 20 per cent lower than a year ago, improved significantly from October’s steep declines, suggesting supply-side pressures are gradually normalising. Cereals and pulses also remained soft, reflecting improved availability and easing procurement pressures.
Non-food items offered partial relief, with oilseeds inflation rising sharply on supply constraints and firm global cues, while minerals prices firmed up amid construction-related demand. Fuel and power inflation stayed negative but showed signs of stabilisation, tracking global energy prices.
Manufactured products, the largest WPI component, saw subdued price pressures, highlighting the absence of strong cost-push inflation across the industrial sector. Overall, the November data suggests wholesale deflation may be nearing its end, reinforcing the view that inflation risks remain well contained.
How Did Markets Close On Friday?
In the previous session on Friday, domestic equities had ended higher. The Sensex rose 449.53 points or 0.53 per cent to close at 85,267.66, while the Nifty advanced 148.40 points or 0.57 per cent to settle at 26,046.95.
