Indian equity benchmarks closed sharply lower on Tuesday, December 16, succumbing to intense selling pressure driven by a historic plunge in the rupee and weak signals from global markets. The benchmark indices extended losses from the previous session, with sentiment taking a hit from persistent foreign fund outflows.
Market Performance and Key Drivers
The S&P BSE Sensex dropped 534 points, or 0.63%, to settle at 84,679.86. Meanwhile, the broader Nifty 50 index declined by 167 points, or 0.64%, closing the session at 25,860.10. The trading day, which coincided with the weekly expiry of derivatives contracts, saw markets open with a gap-down and then move within a narrow range before ending near the day's low.
The sell-off was not limited to large-cap stocks. The BSE Midcap index retreated by 0.78%, and the Smallcap index fell 0.69%, indicating a broad-based negative trend. Sectoral performance painted a bleak picture, with realty, information technology (IT), and financial services stocks emerging as the biggest losers. Sectors like fast-moving consumer goods (FMCG) and auto managed to close almost flat.
Rupee Breach and Global Headwinds
Market experts pointed to a combination of domestic and international factors for the downturn. The Indian rupee breached a historic low, crossing the 91 mark against the US dollar. This sharp depreciation, amid ongoing foreign capital outflows and uncertainties in external trade dynamics, made investors extremely cautious.
"Sentiment was weighed down by the rupee breaching historic lows... amid persistent foreign outflows and uncertainty around external trade dynamics, which kept investors cautious. In addition, lacklustre global cues further dampened risk appetite," said Ajit Mishra, SVP of Research at Religare Broking. He added that selective buying in some heavyweight stocks and the weekly expiry helped limit the fall to some extent.
Stocks in Focus for Wednesday
Amid the market weakness, several individual stocks are likely to see action based on recent corporate developments. Here are key companies that investors should monitor:
Ola Electric: Promoter Bhavish Aggarwal divested over 2.6 crore shares in a bulk deal at ₹34.99 per share, valuing the transaction at around ₹92 crore.
Saregama: The company has entered into a series of agreements with Bhansali Productions, investing ₹325 crore to acquire 9,960 compulsorily convertible preference shares (CCPS) in the film production house.
Vedanta: The National Company Law Tribunal (NCLT) has approved the company's proposal to restructure its oil-to-metals business into five separate, independently listed entities. The plan had previously faced government resistance over concerns about recovering outstanding dues.
NBCC India: The state-owned firm secured a major project management consultancy contract worth ₹332.99 crore from IIT Mandi and another order worth ₹12.05 crore from Kandla SEZ for maintenance operations.
Reliance Industries: Its subsidiary, Reliance Consumer Products, has forayed into the packaged foods segment by reviving the legacy brand SIL as its flagship offering.
Kaynes Technology: The company's subsidiary, Kaynes Semicon, announced two strategic collaborations with Japan's AOI Electronics Co and Mitsui & Co to strengthen its planned semiconductor manufacturing operations in India.
Protean eGov Technologies: The board approved an equity investment of ₹30.2 crore to acquire a 4.95% stake in NSDL Payments Bank.
Indian Overseas Bank: The government will launch an offer for sale (OFS) starting Wednesday, December 17, to divest up to a 3% stake. On the first day, it aims to sell up to 2% equity (38,51,31,796 shares) in the non-retail segment.
Glenmark Pharmaceuticals: Its subsidiary, Glenmark Specialty S.A., signed an exclusive licensing and distribution pact with China's Jiangsu Hansoh Pharmaceutical for Aumolertinib, a lung cancer treatment drug.
Akzo Nobel India: Reports suggest that Imperial Chemical Industries may offload up to a 9% stake in the company through a block deal.
The market's direction on Wednesday will likely depend on the rupee's movement, global risk appetite, and flows from foreign institutional investors. Traders are advised to remain selective and focus on stocks with strong fundamentals.
