Summary of the Day's Market Performance

Market Overview

• Sensex: Dropped 502.25 points (-0.62%) to close at 80,182.20.

• Nifty: Declined 137.15 points (-0.56%) to settle at 24,198.85.

• Midcap & Smallcap Indices: Both lost 0.5%, reflecting broad-based weakness.

• Sectoral Highlights:

  • Pharma: Only sector in green, up 1%.

  • Auto, Energy, PSU Bank, Metal, Media, Realty: Declined 0.5-2%.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-1,316.81 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹4,084.08 crore (Net Buyers)

DIIs actively supported the market amid continued foreign outflows.

1. Breakdown in Santa Claus Rally:

   • The market failed to sustain its festive season gains, with India's premium valuations and slowing earnings growth weighing on sentiment.

2. Global Concerns:

   • Rising Dollar: Rapid dollar appreciation added pressure, especially on emerging markets like India.

   • FOMC Meeting: Investor caution ahead of potential policy and tariff shifts by the incoming US administration.

3. Trade Deficit Woes:

   • November’s widened trade deficit further dampened domestic sentiment, exacerbating market pessimism.

• What is the Santa Claus Rally?

  • It refers to the year-end rally often observed in global equity markets due to increased holiday optimism, fund reallocation, and low-volume trading.

Key Stock Movements and News

• Top Gainers:

  • Trent, Dr. Reddy's Labs, Cipla, Wipro, Bajaj Auto.

• Top Losers:

  • Tata Motors, Bharat Electronics, Power Grid Corp, JSW Steel, NTPC.

1. ITC:

   • Fixed January 6 as the record date for the demerger of its hotel business.

2. Steel Stocks:

   • NMDC and other steel stocks dropped up to 6% after Karnataka proposed a Bill to tax mines and mining land.

3. Shoppers Stop:

   • Shares surged 6% after a ₹236 crore large deal.

4. CDSL:

   • The stock fell as brokers Zerodha and Upstox blamed the firm for technical issues in executing sell orders.

5. IPO Buzz:

   • Vishal Mega Mart: Listed at 45% premium, market valuation crossed ₹50,000 crore.

   • Sai Life Sciences: Debuted with an 18% premium.

   • Purple United Sales: Listed at a 58% premium on the NSE SME platform.

   • MobiKwik: Shares surged nearly 89% on a listing, closing at ₹528 per share compared to an IPO price of ₹279.

• ITC: Upcoming demerger date could spark further interest.

• Trent: Positive momentum in retail and consumer segments.

• Shoppers Stop: Institutional buying may sustain its upward trajectory.

• IPO Stocks: Keep an eye on recent IPOs like MobiKwik and Purple United Sales for post-listing action.

The Indian market's downtrend extended to a third consecutive session, driven by global uncertainties and domestic headwinds. The pharma sector was the sole outperformer, while other sectors succumbed to selling pressure. Despite DII support, FII outflows and rising global risks weighed heavily on sentiment. Investors remain cautious ahead of the FOMC meeting and potential policy announcements. Stock-specific action in recent IPOs and corporate updates provided pockets of excitement amid the broader gloom.

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