Stock market today: Domestic blue-chip indices continued to slide for a second straight session on Wednesday, January 3, amid selling in IT and financial stocks, as global markets slid owing to fading optimism about early US interest rate cuts. Globally, investors await the release of minutes of the Fed's latest policy review and data on jobs in the world's largest economy due this week for cues as markets resume trade following the holidays.

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The Nifty index closed 148.5 points, or 0.7 per cent, lower at 21,517.4, and the Sensex finished the day 535.9 points, or 0.8 per cent, at 71,356.6. The high-beta Nifty Bank index finished the day 56.7 points, or 0.1 per cent, lower at 47,705. The Nifty IT lost 2.5 per cent, its worst fall in percentage terms since July 21, 2023.

Nifty MidCap 100 ended in green, while Nifty SmallCap 100 finished flat.

"The lack of fresh triggers and concerns over valuation influenced investors to stay sidelined. Weak global indicators, like contractions in China and Eurozone manufacturing data, added concerns about global economic recovery in 2024," said Vinod Nair, Head of Research at Geojit Financial Services.

"Importantly, the market was waiting for the Fed minutes later today for rate insights. A rebound in the US 10-year yield and an uptick in the dollar index indicate that the Fed may not turn as dovish as expected," the market expert added.

Hindalco, JSW Steel, LTIMindtree, and Tata Steel were among the top losers in the Nifty50 pack, down around 4–3 per cent. On the other hand, Bajaj Auto, Adani Enterprises, and IndusInd Bank were among the top gainers, rising by around 4–2 per cent.

Global markets

European shares began the day on a weak note as a rally from last year started to lose steam, with investors keeping an eye out for more clarity on global monetary policy. The pan-European STOXX 600 was down 0.3 per cent at the last count, having kicked off 2024 on a lacklustre note.

With input from agencies

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