FINAL TRADE: Nifty slides to 21,513, Sensex falls 671 pts amid selling in financial and FMCG stocks

Stock market today: Domestic blue-chip indexes Nifty 50 and Sensex ended in red on Monday, January 8, dragged by financial, FMCG, and consumer stocks as lacklustre business updates hinted at weak quarterly results. The market witnessed widespread selling. The Nifty index slipped 197.8 points, or 0.91 per cent, to 21,513 and the Sensex finished the day 670.93 points, or 0.93 per cent, lower at 71,355.22.

The heavy-weight bank index—Nifty Bank—shed 708.75 points, or 1.47 per cent, to close at 47,450.25. Nifty Financial Services, which carries the heaviest weight among the 13 main indexes, lost just over 1 per cent. Nifty Small Cap 100 and Mid Cap 100 lost 1.06 per cent and 0.62 per cent, respectively, on the day.

UPL, SBI Life, State Bank of India, and Mahindra & Mahindra were among the top losers in the Nifty basket, down around 2–3 per cent. On the other hand, Adani Ports, ONGC, NTPC, and Sun Pharma were among the top gainers.

"The market witnessed widespread selling as the euphoria over early rate cuts may diminish due to the better-than-expected non-farm payroll data from the US and the consequent rise in the US 10-year yield," Vinod Nair, Head of Research, Geojit Financial Services, said.

"In the near term, investors’ trade positions will be more inclined towards the upcoming result season. While the outset may be tempered by lower expectations in the IT sector, the overall forecast for earnings growth remains optimistic, projecting double-digit figures," Nair added.

Global Market

European shares edged lower on Monday, extending their lacklustre start to the year as tepid energy shares dragged the index, while a rise in government bond yields weighed on risk sentiment.

The pan-European STOXX 600 moved 0.3 per cent lower by 0915 GMT, extending the previous week's decline of 0.5 per cent. European oil and gas stocks dropped 1.7 per cent to weigh the most on the STOXX 600 as crude prices dipped, following sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.

(with inputs from agencies)

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