FIRST TRADE: Sensex down 343 points, Nifty falls to 24,058

After a weak Q2 GDP print, equity indices started on a note on Monday (December 2). At the start, Sensex was down 0.43 per cent or 342.58 at 79,460.2, while the NSE Nifty index was down 0.3 per cent or 72.7 at 24,058.4.

The high beta Nifty Bank index traded lower in a volatile session and was down up to 0.4 per cent. 

Sectorally, pharma, auto and consumer durable indices traded higher, with the pharma pack the most resilient.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, ""The Q2 GDP shocker of 5.4 per cent will weigh on markets but the impact is unlikely to be big since part of the declining growth was factored-in by the market after the disappointing Q2 results. So, a sharp cut in the market, if it happens, can be an opportunity to buy since the DIIs will continue to buy during dips." 

Prashanth Tapse, Senior VP (Research), Mehta Equities said, "The market remains buoyant due to strong domestic investor sentiment, despite concerns over slowing GDP growth in Q2 FY25 to 5.4 per cent and rising retail inflation above 6 per cent."

This week’s focus will be on the RBI’s MPC outcome on Friday, with expectations of a status quo on rates, while US non-farm payrolls will also draw attention, he added.

Asian markets

The MSCI Asia ex Japan index traded higher by 0.37 per cent. Most Asian markets traded in the green, with Singapore's Straits Times up 0.43 per cent. The gains come even as the US President threatens 100 per cent tariffs against BRICS countries. 

Technicals

Akshay Chinchalkar, Head of Research, Axis Securities stated that Nifty's rebound on Friday generated a "bullish belt-hold" formation as the prior day's losses were largely recouped - this pattern is seen when a bullish day whose open matches the lows immediately follows a long bearish day. That makes Thursday's lows at 23,873 important for bulls and bears alike, while resistance remains steadfast at 24,360 followed by the 24,540 area.