India stocks pare initial gains to end down, await key data
11:01, 13 December 2021
Indian stock markets pared morning gains to end weaker on Monday ahead of the release of key domestic inflation data and the US Federal Reserve meeting that would decide on the economic stimulus and its roll-back.
The bellwether Bombay Stock Exchange’s Sensex fell 0.86% from its previous close at 58,283.4 points. The most-traded National Stock Exchange’s (NSE) NIFTY 50 index was 0.82% lower from its previous closing at 17,3368.2 points.
The advance-decline share ratio, which is the number of advancing shares divided by the number of declining shares – on the NSE was 919-968 today.
Indices and individual stocks
The index of software shares was the only one among the 11 sectoral indices that ended in the positive zone. The fall today was led by media companies, which fell 1.8%.
Among the index constituents, software major Tech Mahindra clocked a 52-week high of INR1,655.5 and closed at INR1,638.15. On the other hand, Bajaj Finance led the decliners with its stock falling 3.1% to close at INR7,218.75.
A weak undertone in the markets could not lift the stocks of drug firm Zydus Cadila on Monday even after it secured permission to initiate the Phase II (a) clinical study of its NLRP3 inhibitor in patients with Cryopyrin-Associated Periodic Syndrome (CAPS) in Australia, as announced to the bourses. The shares ended 0.43% lower at INR465.5 on the NSE.
Mining major Vedanta’s shares advanced after the company said last week that its board approved a second dividend for the current financial year of INR13.5 per share. The stock ended 2.2% higher at 357.5 on the NSE.
Weak start on mixed cues
“Markets started the week with a cut of over half a per cent amid mixed cues. Initially, the benchmark opened higher, tracking firm global cues, however, profit-taking at the higher levels trimmed all the gains and pushed the index further lower as the day progressed,” said Ajit Mishra, vice president for research at Religare Broking.
The sectoral indices traded mixed wherein oil and gas, telecom and realty ended with losses, he said.
“Markets are currently dealing with mixed cues. At one end, the encouraging updates on the new Covid variant have eased some pressure, however, caution ahead of the US Fed meet amid the inflation woes is keeping the participants on the edge. In the current scenario, it’s prudent to restrict leveraged positions and let the markets stabilise,” Mishra added.
Data-driven week for markets
Investors remain cautious ahead of the various central bank meetings across the world including that of the Bank of England, the US Federal Reserve, European Central Bank and Bank of Japan in the backdrop of inflation and spreading the Omicron virus.
“Action continued in the broader market with stock specific action. Markets are consolidating on expected lines,” noted Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
“After the fall and recovery in the last two weeks, the market is unable to hold back at higher levels, indicating that index may remain sideways in a consolidative mode for some more time,” he added.
The Indian government would release the consumer price index (CPI) and whole price index (WPI) inflation data for the month of November later today.
Markets are keeping an eye on the US government as it unveils its set of inflation print for the same month later today.
“Ahead of the release of domestic inflation data and key global central bank meetings, the benchmark indices dived into the negative zone digesting weak macroeconomic numbers and continued selling by foreign investors,” noted Vinod Nair, head of research at Geojit Financial Services.