FIRST TRADE: Sensex down over 200 pts; Nifty below 21,750 amid profit booking

Stock market today: The Indian share market on Friday, December 29, opened in negative territory for the last session of 2023 amid profit booking after the indices rallied for five consecutive sessions. Last seen, the S&P BSE Sensex slipped 157.66 points, or 0.22 per cent, at 72,252.72, and the NSE Nifty was down 51.55 points, or 0.24 per cent, at 21,727.15.

"As 2023 draws to a close, the most significant feature of the year’s rally is the sharp outperformance of the broader market. The midcap index is up by almost 45 per cent and the small-cap index is up by 55 per cent leaving the Nifty far behind with an appreciation of around 20 per cent. This trend will likely be reversed in 2024 since the mid and small caps are overvalued and the large caps are relatively fairly valued," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Dr Vijayakumar added that autos, construction, and financials are set to do well in 2024. Autos are in a cyclical rebound, financials are fairly valued even after the recent run-up, and the prospects for construction-related segments continue to look good. Capital goods will continue to do well in 2024, too. January is normally a poor month for the market. The market will keenly watch Q3 results and management commentary.

Meanwhile, the Nifty Mid Cap 100 opened flat with a negative bias, while the Small Cap 100 opened in green. High-beta Nifty Bank was down 0.31 per cent at 48,358.55.

BUZZING STOCKS

Balrampur Chini shares were up over 2 per cent on BSE after reports suggested duty may be imposed on the export of molasses.

Tata Motors shares were up over 2 per cent after Reuters reported that the centre is deliberating over the new electric vehicle or EV policy that will promote EV manufacturing in the domestic markets.

Azad Engineering shares were up over 3 per cent after, in a block deal, Abu Dhabi Investment Authority bought 3.98 lakh shares at Rs 719.9 per share.

Marine Ekectricals shares were up over 4 per cent after the NSE-listed company bagged an order from the Ministry of Defence amounting to a total of Rs 31.85 crore.

Conversely, HPCL, BPCL, and IOCL shares traded lower after reports suggested a price cut in petrol and diesel prices.

GLOBAL MARKETS 

Asian stocks took a breather on the last trading day of the year and are set to snap their two-year losing streak, with investors buoyed by the expectation that the Federal Reserve will start cutting interest rates next year.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was little changed on Friday but lurked near a five-month peak and was headed for a 5 per cent gain in the year after two years of heavy losses.

(With inputs from agencies.)

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