Indian benchmark indices started the week on a weak note, with the BSE Sensex falling 0.32% to 81,872.77 and the Nifty 50 dropping 0.29% to 24,696.40 as of 10:20 am.
Banking, financial, and IT stocks led the declines, reflecting investors’ caution ahead of the US Federal Reserve’s upcoming policy meeting.
The market is closely monitoring the Fed, with CME FedWatch assigning a 93% probability of a 25-basis-point rate cut.
Historically, lower US interest rates support emerging markets like India by attracting foreign institutional investor (FII) inflows.
However, Indian IT stocks, heavily reliant on US revenue, slipped by up to 1%, reflecting concerns over slowing global demand.
Major laggards on the Sensex included HDFC Bank, Infosys, TCS, Kotak Mahindra Bank, and Axis Bank.
In contrast, Reliance Industries, Tata Steel, L&T, ITC, and UltraTech Cement recorded modest gains.
Shares of Afcons Infrastructure, a Shapoorji Pallonji Group subsidiary, jumped 8% in early trade today to hit a new 52-week high of ₹564.40 on the BSE.
The rally came after the company secured a Letter of Acceptance (LOA) from the Madhya Pradesh Metro Rail Corporation for the ₹1,007 crore Bhopal Metro Phase 1 project.
Dixon surges over 4.6% on JV with Vivo India
Dixon Technologies emerged as a standout performer, surging over 4.6% to reach a record high of ₹18,790.
The rally followed the announcement of a joint venture with Vivo India, where Dixon will hold a 51% stake.
The venture will manufacture smartphones and other electronic devices for Vivo and potentially other brands, boosting Dixon’s role in the OEM space.
The joint venture between the two companies comes when major Chinese smartphone firms in India are under heightened scrutiny over allegations including customs duty evasion, income tax violations, and money laundering.
Sky Gold hits the 5% upper circuit
Sky Gold also caught attention, hitting a 5% upper circuit at ₹465.70 as its shares traded ex-bonus on Monday.
The 9:1 bonus issue means shareholders will receive nine new equity shares for every share held, with December 16 set as the record date.
Sky Gold’s share price has delivered exceptional returns to investors, gaining over 42% in the past month and nearly 250% in the last six months.
Analysts’ take: ‘support lies at 24,600’
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted persistent challenges for Indian markets despite positive FII flows in December.
“While FIIs turning buyers in December, after the relentless selling in the previous two months, is positive, investors should not assume that FIIs will continue to buy. A strong dollar and high bond yields in the US are headwinds for capital flows,” he said, adding,
The slowdown in GDP growth and stagnant earnings growth are hurdles for the bulls.
A rally will be sustained only if growth and earnings data show recovery. This will take some time.
Hardik Matalia, Derivatives Analyst at Choice Broking, identified key technical levels for the Nifty, noting, “Support lies at 24,600, with further downside at 24,500 and 24,400. Resistance is pegged at 24,850, followed by 24,950 and 25,050.”
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