• Indian indices closed flat on Wednesday, with investors awaiting November's CPI data.
• Sectoral indices showed mixed results, with Auto, IT, Fin Service, pharma, FMCG, metal, and realty as top gainers.
• Market movements reflect mixed global sentiments ahead of the US CPI inflation data release.
• The Indian stock market's future trajectory will depend on the upcoming inflation data and US Federal Reserve policy decisions.

The Indian frontline indices closed on a flat note on Wednesday, with investors eagerly awaiting the release of November's Consumer Price Index (CPI) data by the government on Thursday. The Sensex was up 16 points at 81,526, and the Nifty was up 31 points at 24,641 at closing. The broader market trend was positive, with 2143 shares closing in the green, 1,839 settling in the red, and 113 shares closing without change on the Bombay Stock Exchange (BSE).

The sectoral indices showed a mixed bag, with Auto, IT, Fin Service, pharma, FMCG, metal, and realty emerging as top gainers, while PSU Bank, media, energy, and private bank were the top laggards. Midcap and smallcap stocks outperformed the largecap in the trading session. The Nifty midcap 100 index closed at 59,292, up 157 points or 0.27 per cent, and the Nifty smallcap 100 index closed at 19,657, up 74 points or 0.38 per cent.

Market experts noted that the Indian market exhibited subtle movements, reflecting mixed sentiments prevailing in global markets ahead of the US CPI inflation data release, which could influence the FED policy. The US dollar strengthened, while bond yields saw a marginal uptick.

Sectoral Performance and Market Trends

Defensive sectors, including FMCG and pharmaceuticals, experienced an uptick. Additionally, the metals sector saw gains driven by optimism surrounding potential stimulus measures from China. In the Sensex pack, Bajaj Finance, Nestle India, Bajaj Finserv, Asian Paints, UltraTech Cement, Infosys, Maruti, Bharti Airtel, and Hindustan Unilever were the top gainers. JSW Steel, NTPC, SBI, Reliance, Tech Mahindra, Axis Bank, and Titan were the top losers.

Foreign institutional investors (FIIs) extended their buying on December 10, buying equities worth Rs 1,285.96 crore, while domestic institutional investors also bought equities worth Rs 605.79 crore on the same day. The market opened at a flat note. At around 9.27 a.m., Sensex was trading at 81,515.06 after gaining 5.01 points or 0.01 per cent, while the Nifty was trading at 24,623.8 after rising 13.75 points or 0.06 per cent.

In Asian markets, Tokyo, Shanghai, and Seoul closed higher, while Hong Kong settled in the negative territory. European markets were trading on a mixed note. The US markets closed in the red on Tuesday. Foreign Institutional Investors (FIIs) bought equities worth ₹1,285.96 crore on Tuesday, according to exchange data.

Market Outlook and Future Predictions

On the downside, JSW Steel fell 1.48%, Adani Ports lost 1.35%, NTPC declined 0.88%, State Bank of India dropped 0.65%, and Axis Bank decreased 0.58%. The Indian stock market continued its flattish opening trajectory this week, as selling was seen in Nifty's financial service and private bank sector in early trade on Wednesday. The biggest positive for the market is the return of the FIIs and the consequent strength in the large caps, particularly in banking and IT, they added.

The Q2 FY25 earnings season has provided little cause for optimism thus far, exhibiting generally subdued underlying trends across sectors. This has adversely affected investor sentiment, as most stocks are trading at elevated valuations that necessitate strong performance to sustain these levels. Indiamart Intermesh also faced significant selling pressure, falling 17% to ₹2,508 per share, prompted by brokerage firms lowering their target prices following the company's Q2 FY25 performance.