Sensex and Nifty Show Modest Gains Amid Subdued Market Activity

Benchmark indices Nifty and Sensex surrendered most of their early gains within an hour of the market opening on December 26, as traders geared up for the monthly F&O expiry. Trading activity was subdued, reflecting the year-end holiday season as investors closed their books for 2024. Notably, today marks the final monthly expiry of the year.

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At 10:14 AM IST, the Sensex had gained 24.95 points, or 0.03%, reaching 78,497.82, while the Nifty rose by 21.70 points, or 0.09%, to 23,749.35. Market breadth showed 1,438 stocks advancing, 1,771 declining, and 140 remaining unchanged. The Nifty midcap and smallcap indices came under pressure, both slipping 0.5%.

"The markets are expected to remain in a narrow consolidation phase as we near year-end, given the muted activity and lack of significant catalysts," commented Ruchit Jain, Vice President of Technical Research at Motilal Oswal, in a discussion with Moneycontrol. He explained that while the current correction is healthy and aligns with a long-term uptrend, the market may experience a time-based correction until earnings pick up, which is likely to be the next major driver. Jain also highlighted potential headwinds, including rising bond yields and a strong dollar index, which could dampen sentiment as emerging markets often show an inverse relationship with the dollar.

Early trading saw Nifty PSU Bank and private bank indices rise nearly 1% each, led by robust performances from HDFC Bank, SBI, and ICICI Bank. This recovery followed a nearly 1% decline in the PSU bank index in the previous session. Auto stocks extended their rally for a second session, driven by Maruti Suzuki, M&M, and Tata Motors. Other sectors, such as Nifty FMCG, Oil and Gas, and Consumer Durables, also saw gains of up to 0.3%. However, the Nifty Realty index lagged, dipping 0.4%.

Several market analysts noted that broader market activity remains stock-specific, with Q3 results expected to be a decisive factor in the market's direction.

BPCL shares climbed nearly 2% after the company emerged as the lowest bidder for a 150 MW solar PV project by NTPC. Once finalized, the ₹756.45 crore project is expected to be completed within two years and generate approximately ₹100 crore annually by producing 400 million units of clean energy.

Panacea Biotec shares surged 5% following the receipt of a Letter of Award (LoA) from UNICEF to supply 115 million doses of its bivalent oral polio vaccine (bOPV). The ₹127 crore contract is slated for execution in 2025.

UltraTech Cement shares gained ground after signing an Energy Supply Agreement and acquiring a 26% stake in Clean Max Sapphire, a renewable energy firm. Additionally, UltraTech increased its stake in India Cements by 32.72%, bringing its total shareholding to 55.49% and making India Cements its subsidiary.

"The sentiment remains fragile, with intraday recoveries encountering selling pressure and no clear positive momentum emerging. For two consecutive sessions, the 23,900 level has acted as a significant resistance, aligning with the 200 DSMA," observed Sameet Chavan, Head of Technical and Derivative Research at Angel One. "For the upcoming expiry, breaking the 23,900–24,000 range will be crucial to drive year-end positivity. On the downside, the 23,600–23,500 zone serves as immediate support, aligning with the lower boundary of last Friday’s bearish pattern," he added.

Top gainers on the Nifty included Axis Bank, Maruti Suzuki, SBI, ICICI Bank, and Kotak Mahindra, while Asian Paints, Cipla, Dr. Reddy’s, Trent, and Tata Consumer Products emerged as the major laggards.