Indian equity benchmarks extended their losing streak for the third consecutive trading session on Wednesday, December 17, dragged down by a combination of persistent weakness in the domestic currency and sustained selling by foreign investors.
Market Performance and Key Drivers
The benchmark Sensex slipped 120 points, or 0.14%, to close at 84,559.65. Similarly, the Nifty 50 index declined by 42 points, or 0.16%, settling at 25,818.55. Analysts pointed to continued foreign fund outflows, a weak rupee, and delays in the anticipated India-US trade agreement as the primary factors behind the market's corrective phase.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., noted that markets remained volatile throughout the day. "After an initial uptick, the Nifty quickly resumed its downward trajectory and gradually drifted lower through the session," he said. The broader market witnessed more severe losses, with the BSE Midcap index falling 0.53% and the Smallcap index dropping 0.85%, reflecting heightened risk-off sentiment.
Sectoral Trends and Broader Sentiment
Sectoral performance painted a largely negative picture. Realty, fast-moving consumer goods (FMCG), and financial services stocks emerged as the key laggards, contributing significantly to the indices' decline. In a contrasting move, information technology (IT) and metals sectors managed to resist the broader downtrend, closing flat to marginally higher.
The pressure in the midcap and smallcap segments, which are often seen as barometers of domestic investor confidence, further weighed on overall market mood. Mishra added that these indices declined in the range of 0.66% to 0.83%, underscoring the depth of the sell-off beyond the heavyweight stocks.
Stocks in Focus for Thursday's Trade
Amid the broad market weakness, several individual stocks are likely to see specific action based on recent corporate developments. Here are key companies that investors will be watching closely:
Ola Electric: Founder and promoter Bhavish Aggarwal offloaded an additional 4.2 crore shares through open market transactions on Wednesday.
Larsen & Toubro: The engineering conglomerate announced it secured multiple high-value contracts, including an order to build a museum in Omkareshwar, Madhya Pradesh.
Cyient: The company's Singapore arm plans to acquire a majority stake of over 65% in US-based Kinetic Technologies for $93 million. The transaction is expected to be completed by April 30, 2026.
NTPC: The state-owned power giant commenced commercial operations for 243.66 MW of capacity from its 1,255-MW solar power project at Khavda in Gujarat.
Indian Overseas Bank: The government will utilize the oversubscription option in its offer-for-sale (OFS) scheduled for December 18. It will offer an additional 7.6 crore shares (0.395% equity) over the base offer of 38.51 crore shares (2% equity).
Titagarh Rail Systems: The company secured a ₹273.24 crore contract from Indian Railways to supply 62 rail maintenance vehicles, along with training and servicing.
GMR Power: Plans to raise over ₹1,200 crore via a preferential allotment of shares and convertible warrants, subject to approvals.
AstraZeneca Pharma: Received approval from the Central Drugs Standard Control Organisation to import, market, and distribute Datopotamab Deruxtecan in India.
KP Group: Signed a Memorandum of Understanding (MoU) with the Government of Botswana to jointly develop large-scale projects in renewable power, energy storage, and transmission.
ACME Solar: Successfully commissioned 52 MW of capacity from its 100 MW wind power project in Surendranagar, Gujarat.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
