After a remarkable seven-day winning streak, the Indian stock market witnessed a consolidation phase on Thursday, December 7th. The benchmark indices, Sensex and Nifty, closed lower, losing 435 points and 86 points respectively.
Sectoral Performance:
The sector-wise performance was mixed, with Telecommunications, FMCG, and IT sectors displaying resilience and closing in the green. However, the Oil & Gas and Metals sectors succumbed to the selling pressure and dragged the market down.
Stocks in the Spotlight:
Paytm remained the center of attention, hitting a 20% lower circuit limit after receiving brokerage downgrades. Other notable stocks included IDFC First Bank, M&M, Adani Ports, Dr Reddy’s, and RITES, which witnessed significant movement during the trading session.
IPO and Expert Views:
DOMS Industries Ltd. set the price band for its IPO between ₹750 and ₹790 per share, generating positive investor sentiment with a strong GMP of ₹410. In terms of expert outlook, James Sullivan of JPMorgan expressed optimism for the Indian market, stating that he remains overweight on India for 2024.
Other Significant Developments:
- Paytm integrated the Open Network for Digital Commerce (ONDC) on its app, bolstering the platform’s reach and driving further adoption.
- The government announced its plan to sell up to 8% stake in IRCON through an offer for sale, aiming to raise Rs 1,100 crore.
- Falling crude oil prices negatively impacted ONGC shares, leading to a decline in its stock price.
Future Outlook:
Market analysts believe that the consolidation may continue in the near term, with investors closely monitoring global market cues and the upcoming weekly options expiry. Paytm’s future performance will also remain in focus following its recent plunge. Additionally, the outcome of the IRCON stake sale will be closely watched for its impact on the market.
Disclaimer: This information is for general knowledge only and does not constitute financial advice. Please consult a qualified professional before making any investment decisions.