Mumbai (Maharashtra) [India], December 10 : The stock market ended Tuesday's trading session on a subdued note, with the benchmark indices showing little movement.
The Sensex edged up by 1.59 points, closing at 81,510.05, while the Nifty declined by 8.95 points to end at 24,610.05.
In the Nifty pack, 23 stocks advanced, while 27 ended in the red. Among the top gainers were Shriram Finance, Bajaj Finserv, HCL Technologies, Wipro, and Infosys, which supported the indices amid cautious trading.
On the flip side, the top losers included Bharti Airtel, Dr. Reddy's Laboratories, Adani Ports, Adani Enterprises, and HDFC Life.
VLA Ambala, Co-Founder of Stock Market Today, attributed the lackluster performance to investor caution ahead of the release of key CPI inflation data from the US and India.
"During Tuesday's session, the Sensex and Nifty traded in a narrow range as investors remained cautious ahead of the upcoming US and India CPI data. However, the market turned negative at the end of the day, driven by energy and telecom stocks. In contrast, the IT index was the highlight of the day by hitting a record high of 45,377.75. This movement was supported by more favorable global market conditions and the depreciation of the rupee against the US dollar," Ambala noted.
The Indian rupee's decline to a record low against the US dollar added to the mixed sentiment. Market speculation over rate cuts gained momentum following news of Sanjay Malhotra's appointment as the next Reserve Bank of India (RBI) governor. This development led to a fall in government securities yields.
The IT sector emerged as a bright spot in an otherwise tepid market, benefitting from the depreciation of the rupee, which enhances dollar-dominated revenues.
"the IT sector, benefitting from dollar-dominated revenues, is expected to maintain its momentum. Higher rupee depreciation is likely to boost earning," Ambala added.
Investors are now eyeing the release of CPI data for further cues on market direction, with sectoral performances likely to diverge amid global and domestic uncertainties.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor