Indian Markets End Flat Amid Mixed Global Cues and Strong IIP Data
Indian equity markets concluded Tuesday's session with minimal movement as Nifty fell marginally to 25,938.85 and Sensex closed at 84,675.08 amid mixed global cues. Despite strong November IIP data, thin trading volumes due to global holidays kept markets subdued, with FIIs selling ₹3,844 crore while DIIs provided support with ₹6,160 crore buying.
*this image is generated using AI for illustrative purposes only.
Indian equity markets concluded Tuesday's trading session with minimal movement as investors remained cautious amid mixed global cues and thin trading volumes due to New Year holidays in several global markets. Despite strong November IIP data, the benchmark indices ended virtually flat with selective buying observed across sectors.
Market Performance Overview
The benchmark indices displayed resilience in a challenging trading environment. The Nifty 50 declined marginally by 3.25 points or 0.01% to settle at 25,938.85, while the BSE Sensex slipped 20.46 points or 0.02% to close at 84,675.08.
| Index | Closing Level | Change (Points) | Change (%) |
|---|---|---|---|
| Nifty 50 | 25,938.85 | -3.25 | -0.01% |
| BSE Sensex | 84,675.08 | -20.46 | -0.02% |
| Midcap 100 | - | - | -0.20% |
| Smallcap 100 | - | - | -0.30% |
The broader market faced additional pressure with both Midcap 100 and Smallcap 100 indices declining 0.20% and 0.30% respectively. However, the Metal and Auto sectors provided crucial support, acting as a cushion against the prevailing headwinds.
Technical Outlook and Market Indicators
From a technical perspective, immediate support for the Nifty is placed in the 25,850-25,870 zone. A decisive break below this level could intensify bearish sentiment, while resistance is positioned at 26,000. The India VIX, which measures market volatility, fell 0.40% to settle at 9.68 levels, indicating relatively calm market conditions.
| Technical Parameter | Level/Value |
|---|---|
| Immediate Support | 25,850-25,870 |
| Key Resistance | 26,000 |
| India VIX | 9.68 (-0.40%) |
Foreign and Domestic Institutional Activity
Institutional trading patterns revealed contrasting flows during the session. Foreign portfolio investors were net sellers, offloading shares worth ₹3,844.00 crore. In contrast, domestic institutional investors provided strong support as net buyers worth ₹6,160.00 crore, helping cushion the market from further declines.
| Investor Category | Net Position | Amount (₹ crore) |
|---|---|---|
| Foreign Portfolio Investors | Net Sellers | -3,844.00 |
| Domestic Institutional Investors | Net Buyers | +6,160.00 |
Currency Performance and Corporate Developments
The Indian rupee strengthened against the US dollar, rising 23 paise to close at 89.75 compared to the previous session, primarily due to dollar selling by the Reserve Bank of India. Several companies announced significant business developments, including Bharat Forge's substantial ₹1,662.00 crore defence contract with the ministry to supply indigenously developed CQB carbines to the Indian army.
Dynacons Systems & Solutions secured orders worth ₹249.00 crore from the Reserve Bank of India for enterprise applications, while Powergrid won a 150 MW/300 MWH Battery Energy Storage Project in Andhra Pradesh. Additionally, Rites received a project award worth $3.60 million from Zimbabwe.
Market Outlook
Analysts expect markets to remain sideways with selective buying opportunities emerging amid the current consolidation phase. The combination of strong domestic institutional support and improving technical indicators suggests potential stability, though global market holidays may continue to impact trading volumes in the near term.
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