Midday Market Report: Sensex tumbles 930 points, Nifty slips below 24,400; Airtel, TCS drag

Indian equity markets faced heavy selling pressure on Tuesday as global uncertainties, rising trade deficit concerns, and investor jitters ahead of the US Federal Reserve’s rate decision weighed on sentiment.

Indices under pressure amid global headwinds

The BSE Sensex plunged 930 points or 1.13 per cent to hit an intraday low of 80,818, while the NSE Nifty50 slipped 285 points or 1.15 per cent to 24,383. The weakness was driven by sustained foreign institutional investor (FII) outflows and cautious trading ahead of the Fed policy meeting.

On December 16, FIIs sold equities worth Rs 278.70 crore, while domestic institutional investors (DIIs) offloaded Rs 234.25 crore, reflecting a lack of buying support.

India’s trade deficit surge adds pressure

Investor sentiment was further dampened by the widening of India’s trade deficit, which hit a record $37.8 billion in November. Merchandise imports surged 27 per cent to nearly $70 billion, driven by a fourfold jump in gold imports. Analysts warn that this could push the rupee closer to 85 per dollar, increasing import costs for businesses.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The sharp rise in trade deficit will pressure the rupee, impacting importers. Exporters like IT and pharma could benefit from the depreciating rupee.”

Top losers and gainers

On the Sensex, Bharti Airtel led the decline, falling 2.32 per cent, followed by TCS (-1.46 per cent), JSW Steel (-2.8 per cent), Power Grid (-2.4 per cent), and Reliance Industries (-1.7 per cent).

Meanwhile, Tata Motors, and Tech Mahindra managed modest gains of up to 1 per cent. On the NSE, Cipla, Adani Ports, and Bajaj Finance led the gainers, rising marginally by 0.44 to 1.11 per cent.

Sectoral performance: Realty and media buck trend

Most sectoral indices traded in the red, with Nifty Oil & Gas falling 0.86 per cent and Nifty Private Bank dropping 0.76 per cent. Nifty Financial Services and FMCG were down 0.75 per cent and 0.65 per cent, respectively.

In contrast, Nifty Realty gained 1.07 per cent, while Nifty Media advanced 0.96 per cent, providing a sliver of optimism.

Broader markets hold firm

Despite weakness in frontline indices, broader markets remained resilient. The BSE SmallCap index rose 0.12 per cent to 57,299, while the MidCap index inched up 0.11 per cent to 48,181.

What’s next for markets?

Markets now await the outcome of the US Federal Reserve’s rate decision on Wednesday. Analysts suggest that while a 25-basis point cut is already priced in, the Fed Chair’s commentary will be closely monitored for further cues.

Investors remain cautious, with global headwinds and domestic challenges like trade deficit and currency pressures keeping equities under check.