The markets traded with a cautious tone on Tuesday, December 23, as the recent rally lost steam amid foreign fund outflows and the absence of strong fresh triggers. Both benchmark indices, the BSE Sensex and the NSE Nifty 50, ended marginally lower, reflecting profit-booking and subdued participation ahead of the Christmas and New Year holidays.
The Sensex slipped over 100 points during the session, while the Nifty hovered below the 26,200 mark for most of the day. Market sentiment remained fragile as foreign institutional investors (FIIs) turned net sellers after two sessions of buying, putting pressure on heavyweight stocks.
Sector-wise, information technology stocks emerged as key laggards, dragging the indices lower. Shares of major IT companies faced selling pressure as investors remained cautious about global demand outlook and currency movements. Select banking and FMCG stocks also saw mild declines, adding to the weakness.
However, the broader market showed pockets of strength. Cement stocks were among the top gainers after Ambuja Cements and Orient Cement rallied sharply following board approval for a major merger, which boosted investor confidence in the sector. Belrise Industries touched fresh 52-week highs after a large block deal signalled strong institutional interest. Infrastructure stock GPT Infraprojects also advanced after securing a significant road project from the National Highways Authority of India.
Mid-cap and small-cap stocks performed relatively better than the benchmarks, indicating selective buying despite overall caution. Oil and gas as well as metal stocks showed resilience, supported by firm global commodity prices.
Global cues were mixed, with Asian markets trading steady and US markets offering limited direction overnight. With no major domestic or global triggers lined up and liquidity thinning due to year-end holidays, experts expect markets to remain range-bound in the near term.
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