FINAL TRADE: Sensex down 379 points, Nifty slides to 21,666 amid selling pressure in financial, IT shares

Stock market today: Domestic headline indices Nifty50 and Sensex slipped into the red after a lacklustre start to the session on Tuesday, January 2, amid mixed signals from global markets amid thin holiday trade. Financial and IT stocks were the biggest contributors to the losses in both gauges, although buying interest in select pharma and healthcare stocks saved them from bigger cuts. 

"The market extended yesterday’s last hour’s sell-off, taking negative cues from Asian peers due to weak Chinese manufacturing data and mounting tensions in the Red Sea, which has the potential to disrupt global trade and crude supplies." Vinod Nair, Head of Research at Geojit Financial Service. 

The Nifty index ended 76.1 points or 0.4 per cent lower at 21,665.8 and the Sensex lost 379.5 points or 0.5 per cent for the day to settle at 71,892.5. Nifty Bank index, whose 12 constituents include SBI, HDFC Bank and ICICI Bank, finished the day near its day's low, 472.65 points or 0.98 per cent lower at 47,761.65.Nifty Pharma finished at record 17,274.3, up 2.46 per cent or 415.55 after scaling fresh record high.

Nifty auto stocks dropped 1.37 per cent and was the top sectoral loser. Eicher Motors extended decline, losing 3.57 per cent on NSE, as a tax penalty notice and a fall in December motorcycle sales continued to weigh. Mahindra and Mahindra lost 2.48 per cent, after the company attributed the decline in tractor dispatches in December to the tapering of agricultural activities in the month and flagged supply challenges.

"Ahead of the impending results season, investors are adopting a profit booking strategy. Auto stocks declined on below-expected volume numbers, while pharma stocks were the standout due to catch-up in the US economy," he added.

Eicher Motors, M&M, UltraTech Cement and L&T were among the top losers, down around 4-2 per cent. On the other hand, Divi's, Adani Ports, Sun Pharma and Coal India were among the top gainers in the Nifty basket, trading with gains of around 3 per cent. 

While Nifty Small Cap 100 & Nifty Mid Cap 100 finished 0.24 and 0.18 per cent lower.

Global Market

Europe's benchmark stock index hit a near two-year high on Tuesday, as investors entered 2024 with undeterred hopes that major central banks might finally deliver interest rate cuts, with energy stocks leading the charge.The pan-European STOXX 600 was up 0.3 per cent by 0811 GMT, hitting a 23-month high, after a long weekend for New Year Day holiday.Expectations of softer monetary policy drove a 12.7 per cent jump in the benchmark index in 2023, almost fully rebounding from a 12.9 per cent slump in the previous year after major central banks delivered rapid rate hikes to conquer spiralling inflation.

(With inputs from agencies)

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.