The Indian stock market began the week on a bearish note, driven by selling pressure in banking stocks. The Sensex dropped by 152 points to open at 81,953, while the National Stock Exchange's Nifty started at 24,734, down 34 points. Despite the overall decline, midcap and smallcap shares showed significant buying interest, with their indices trading in positive territory.
During the trading session, 10 of the 30 Sensex stocks were in the green, while 20 were in the red. Among the gainers, ITC rose by 0.50%, Larsen & Toubro gained 0.42%, Reliance climbed 0.41%, UltraTech Cement advanced 0.28%, Tata Steel increased 0.20%, HCL Tech was up 0.13%, and Adani Ports added 0.05%.
On the losing side, JSW Cement fell 0.76%, Tech Mahindra dropped 0.70%, Titan slid 0.76%, Kotak Mahindra Bank lost 0.57%, Axis Bank declined 0.47%, and TCS shed 0.45%.
In sectoral performance, only real estate, media, and consumer durables showed gains. In contrast, sectors such as banking, IT, auto, pharma, FMCG, metals, energy, healthcare, and oil and gas witnessed declines.
However, midcap and smallcap indices bucked the trend, demonstrating robust growth. The Nifty Midcap index rose by 243 points, while the Nifty Smallcap index climbed 118 points.
This week is expected to be critical for the Indian stock market. Central banks from 18 countries, including the US Federal Reserve, are set to announce their interest rate decisions. A potential interest rate cut by the Federal Reserve is anticipated, with the announcement scheduled for December 18.
Additionally, India's wholesale price inflation data is due to be released today, which could provide further cues for market direction.