Indian Stock Market on 26.12.24

The Indian stock market had a rather uneventful Thursday, closing almost flat as the year-end lull set in. The Nifty 50 eked out a modest 0.1% gain, ending the day at 23,750.2, while the BSE Sensex was nearly unchanged at 78,472.48. Both benchmarks had shown some early promise, gaining around 0.5% in the morning, only to lose momentum as the day wore on.

This marks the fourth consecutive session under that level, signaling some caution among traders. The previous week’s setback was largely driven by the Fed’s outlook on rate cuts and persistent foreign selling. Now, with trading volumes tapering off as we near the year-end, analysts are bracing for a quieter few weeks. Directional cues for the broader market are expected only after the corporate earnings season kicks off in mid-January.

Among the individual stock movements, there were some notable highlights. Panacea Biotech saw a strong 3.9% jump after securing a hefty $14.95 million order from UNICEF for polio vaccine supplies. On the flip side, NTPC Green Energy slumped 5.25% as the lock-in period for 50% of its anchor investors’ shares ended, adding selling pressure. Meanwhile, Epack Durable gained 4% after ICICI Securities initiated coverage with a “buy” rating, highlighting the company’s growth prospects in air conditioners.

On the currency front, the Indian rupee hit a fresh record low for the third consecutive session, closing at 85.2625 against the dollar. Importers, who were active in their month-end dollar demand, helped push the rupee down, despite relatively low trading volumes. This marks an ongoing slide, as the rupee’s fall from 84 to 85 took just two months, a sharp contrast to the slower depreciation over the previous year.

In terms of gold and silver, Delhi saw 10 grams of 24-carat gold priced at Rs 77,513, while 1 kg of silver stood at Rs 94,400. As the market heads into the final stretch of the year, it’s clear that traders are holding their breath, with little in the way of fresh triggers until the corporate earnings season gets underway.