Nifty, Sensex Decline for Second Consecutive Session Driven by RIL and FMCG Stocks

The Nifty 50 and Sensex indices saw a downward trend for the second session in a row, primarily influenced by losses in major companies like Reliance Industries Ltd. as well as fast-moving consumer goods (FMCG) stocks.

At the close of trading on December 9, 2024, the NSE Nifty 50 marked a decline of 58.80 points, or 0.24%, settling at 24,619. Similarly, the BSE Sensex finished 200.66 points, or 0.25%, lower at 81,508.46. During the day, both indices experienced a dip of about 0.4% at their lowest levels.

The FMCG sector's sentiment took a hit when Godrej Consumer Products Ltd. indicated a persistent slowdown in market demand. This downturn significantly contributed to a decline of 39 points in the Nifty index.

Investors were carefully monitoring several global developments, including remarks from China’s Politburo, changes in the country's monetary policy, political developments in South Korea, and ongoing geopolitical tensions in West Asia over the weekend.

Aditya Gaggar, director at Progressive Share Brokers, mentioned that the Nifty index displayed a "gravestone doji candlestick pattern," signaling a necessary correction. He maintained a bullish outlook for the market, predicting a potential rally to 25,400 while suggesting that immediate support levels were established around 24,540 and resistance at 24,850.

Main contributions to the Nifty's decline came from stocks such as Hindustan Unilever Ltd., ITC Ltd., Axis Bank Ltd., and ICICI Bank Ltd..

On a positive note, companies like Larsen & Toubro Ltd., HDFC Bank Ltd., Bharti Airtel Ltd., Infosys Ltd., and Kotak Mahindra Bank Ltd. helped mitigate the losses somewhat.

Most sectoral indices on the NSE registered declines, with the Nifty FMCG and Media sectors seeing the steepest drops. However, broader market segments showed some advancement, with the BSE MidCap and SmallCap indices gaining 0.32% and 0.46%, respectively.

On the BSE, out of 21 sectors, 14 experienced upward movement while seven faced declines. The industrial sector emerged as the strongest performer, while FMCG stocks led the downturn.

The market breadth was positive overall, with 2,304 stocks advancing, 1,771 falling, and 165 remaining unchanged on the BSE.

Nifty, Sensex, Stocks