Sensex flat at 78,210, Nifty below 23,650; IT stocks drag

Indian equity markets opened on a weak note for the second straight session on December 31, mirroring a decline in Asian peers. The Sensex dropped over 150 points at the opening bell but pared losses to trade flat at 78,210. Similarly, the Nifty50 remained under pressure, hovering below the 23,650 mark as elevated U.S. Treasury yields continued to weigh on emerging markets.

IT sector under pressure
Information technology stocks led the market's losses, with the sector index sliding 1.9 per cent by midday. Heavyweights like Infosys, TCS, and HCL Tech fell between 1.5 per cent and 2.5 per cent, dragging the indices lower. Infosys and ICICI Bank were among the top contributors to the Nifty50’s decline.

Broader markets and sectoral performance
The broader markets saw mixed trends, with the smallcap and midcap indices declining by 0.25 per cent and 0.5 per cent, respectively. Most sectoral indices are traded in the red and are led by IT and pharma. Financials saw limited gains, with SBI trading higher by 0.6 per cent.

Conversely, stocks like Asian Paints, Tata Motors, Nestle India, and Adani Ports bucked the trend, providing some support to the benchmarks.

Global cues weigh on sentiment
Asian markets remained subdued on the final trading day of the year, influenced by persistent selling in the tech sector on Wall Street. Elevated U.S. Treasury yields and concerns over slowing global growth further dampened investor sentiment.

Outlook for the rest of the session
Market experts suggest cautious trading in the second half, as volatility is expected to persist due to year-end adjustments and weak global cues. The Nifty faces resistance at 23,700, while support is seen at 23,400. Investors will closely monitor movements in IT stocks and updates on macroeconomic indicators.

As of 1:50 PM, the market remained range-bound, with participants awaiting fresh triggers to define the day’s direction.