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Indices end with minor losses as FPI selling offsets gains in heavyweights

The Sensex opened the session marginally higher but fell as much as 0.9 per cent before paring some of its losses

The average daily trading volume (ADTV) for the futures and options segment climbed to a new record high of Rs 537 trillion in September, rising 7.2 per cent on a month-on-month basis. The ADTV for the cash segment, however, fell nearly 4 per cent to

The market breadth was weak, with 2,664 stocks declining and 1,318 advancing. (Representative Picture)

BS Reporter Mumbai

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India's benchmark indices ended with minor losses on Wednesday amid foreign portfolio investor (FPI) selling. This came amid concerns over corporate earnings and uncertainty regarding possible policy shifts after Donald Trump takes over as US President again.
 
The Sensex opened the session marginally higher but fell as much as 0.9 per cent before paring some of its losses. It ended the session at 78,149, a decline of 51 points or 0.06 per cent.
 
Nifty, meanwhile, closed the session at 23,689, a drop of 19 points or 0.08 per cent. The combined market capitalisation of BSE-listed firms declined by Rs 2 trillion and was Rs 440 trillion.
 
 
FPIs on Wednesday were net sellers to the tune of Rs 3,362.18 crore, and domestic institutions were net buyers worth Rs 2,716 crore.
 
HDFC Bank, which declined 1.2 per cent, and ICICI Bank, which fell 1.3 per cent, were the biggest contributors to the Sensex decline.
 
FPIs hold huge stocks in both companies. The decline in the top lenders overshadowed gains in Reliance Industries and Tata Consultancy Services.
 
Reliance Industries rose after Jefferies, in a report, reiterated its buy rating, citing restoration of growth in its retail segment in FY26, likely listing of Jio and valuation, which it described as “Cheapest since the Covid shock of March 2020.”
 
“Caution ahead of Q3 numbers added volatility in the market. However, the market witnessed a recovery from the day's low owing to the accumulation of beaten-down blue-chip stocks and the expectation of government reforms in the upcoming Budget. The near-term sentiment is likely to be subdued due to the rise in US bond yield and fear of fewer rate cuts by the Fed,” said Vinod Nair, head of research at Geojit Financial Services.
 
The market breadth was weak, with 2,664 stocks declining and 1,318 advancing. More than half of Sensex stocks declined. Larsen & Toubro, which fell 1.3 per cent, and State Bank of India, which slid 1 per cent, were the other big contributors to the Sensex's decline.
 
The results season, which will start on Thursday post-market hours, will give investors immediate cues regarding the market trajectory.
 
 “IT stocks will be in focus as TCS is set to kick-start the Q3 earnings season on Thursday. While revenue for the IT giant is expected to remain impacted by furloughs, client-specific challenges are likely to normalise in Q3. Its earnings before interest and taxes (Ebit) margin may improve, driven by talent development, training, and operational efficiency. Rising crude prices led to buying interest in upstream oil & gas companies. We expect Indian markets to remain range-bound with stock or sector-specific action on the back of upcoming Q3 results,” said Siddhartha Khemka, head of research wealth management, Motilal Oswal Financial Services.

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First Published: Jan 08 2025 | 9:45 PM IST

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