Final Trade: Market wraps up in red; Sensex slips 50 points, Nifty ends at 23,675

Indian equity markets closed with minor losses on Wednesday, as muted global cues weighed on investor sentiment. The BSE Sensex ended 50.62 points lower at 78,148.77 while the Nifty50 shed 18.95 points, settling at 23,688.95.

Despite some sector-specific gains in Oil, FMCG, and IT, the broader market felt the drag from other sectors.

Early in the day, both indices had fallen further, with the Sensex briefly dropping 612 points to 77,589 and the Nifty50 falling by 167 points to 23,540. The retreat in Indian stocks followed global trends, particularly after strong U.S. economic data suggested a more resilient economy. The uptick in U.S. services sector activity in December and rising job openings in November have led to expectations that the Federal Reserve may implement fewer rate cuts next year.

As a result, markets are now adjusting their forecasts, with only one rate cut expected from the U.S. central bank in 2025, down from the previous prediction of two. The shift in rate cut expectations has dampened market optimism, contributing to the day's overall declines.