Stock Market Highlights: Nifty, Sensex Recover Weekly Losses; Dr Reddy's, IndusInd Bank Top Gainers

The stock market showed signs of recovery as the Nifty 50 and BSE Sensex ended higher, recouping weekly losses. The Nifty 50 rose by 63.20 points, or 0.27%, finishing the day at 23,813.40. The Sensex also showed an upward trend, gaining 226.59 points, or 0.29%, to close at 78,699.07.

During Friday's trading session, the key indices saw a rise early on, but gains were curtailed as the day progressed. A notable decline in the Indian rupee negatively impacted investor sentiment. Despite these challenges, the trading session ended positively, driven primarily by strong performances from companies like ICICI Bank Ltd. and Mahindra & Mahindra Ltd..

Market Overview

The Nifty 50 marked its second consecutive day of gains, but earlier highs were not sustained as some investors opted for profit-taking. At one point, the Nifty 50 soared by 0.79%, reaching a high of 23,801.40, while the Sensex rose by 0.73% to hit 79,043.15. Nevertheless, a sharp drop in the rupee weighed heavily on market participants.

On a concerning note, the rupee fell to a record closing low of 85.54, experiencing its steepest decline in a day since 2023. Experts noted that while markets ended higher, there was a lack of confidence, primarily due to foreign investors remaining cautious amidst the rupee's downturn. Factors contributing to this atmosphere include limited major triggers and apprehension ahead of upcoming political changes in the US.

Sectors Performance

In terms of sector performance, the auto sector stood out, with growing expectations of increased sales in December. Major players contributing positively to the Nifty 50 included HDFC Bank Ltd., Reliance Industries Ltd., and Bajaj Auto Ltd..

Conversely, stocks such as Apollo Hospitals Enterprise Ltd., HCLTech Ltd., and Dr. Reddy's Laboratories Ltd. faced downward pressure, detracting from the overall index performance. On the NSE, seven sectors advanced while five saw declines, with the NSE Nifty Pharma leading the gains and the NSE Nifty Metal experiencing the largest drop.

The BSE Midcap index underperformed, closing 0.1% lower, while the BSE Smallcap index edged up by about 0.3%. In total, 12 out of 21 sectoral indices on the BSE reported losses, with the BSE Metal sector being the biggest laggard.

Market Breadth and Weekly Recap

Looking at the market breadth, it leaned towards sellers with 2,027 stocks declining, 1,942 advancing, and 119 remaining unchanged on the BSE. For the week that ended on December 27, both the Nifty 50 and Sensex were able to recuperate some of their losses, trending upward by 0.96% and 0.84%, respectively.

This week, eight sectors within the NSE showed advancement while four faced declines out of a total of 12, highlighting a mixed sentiment in the market. Significant recoveries were observed in the NSE Nifty Auto, NSE Nifty Oil and Gas, and NSE Nifty Banks, all of which broke a two-week losing streak.

Stocks, Market, Gainers