• The Indian stock market started the week with a decline, with the Nifty index falling below 23,800.
• The market trend remained negative, with 815 stocks trading in green and 1,454 stocks in red on the NSE.
• On the sectoral front, buying was seen in the Pharma and Healthcare sector, while selling was observed in various sectors.
• The Indian stock market has been experiencing a downward trend, with various sectors experiencing selling pressure, but experts believe that the market may recover in the short term.

The Indian stock market commenced the week on a low note, with the Nifty index falling below 23,800. The decline was primarily driven by selling in various sectors, including auto, IT, PSU bank, financial service, FMCG, media, energy, and metal sectors. As of 9:30 am, the Sensex was trading at 78,523.25, a decrease of 175.82 points or 0.22 per cent, while the Nifty was trading at 23,758.20, a decrease of 55.20 points or 0.23 per cent.

The market trend remained negative, with 815 stocks trading in green and 1,454 stocks in red on the National Stock Exchange (NSE). Experts have expressed concerns over the uncertainty surrounding the global stock markets, particularly with the advent of the New Year. They noted that the high market valuations could lead to corrections in the event of any negative news.

The Nifty Bank was down 74.80 points or 0.15 per cent at 51,236.50. The Nifty Midcap 100 index was trading at 56,796.90 after dropping 182.90 points or 0.32 per cent, while the Nifty Smallcap 100 index was at 18,673.75 after dropping 82.10 points or 0.44 per cent.

Impact on Sectoral Front and Global Indices

On the sectoral front, buying was seen in the Pharma and Healthcare sector. In the Sensex pack, Tata Steel, M&M, HCL Tech, Tech Mahindra, Maruti Suzuki, Bajaj Finserv, Titan, Kotak Mahindra Bank and Reliance were the top losers. Adani Ports, Bharti Airtel, ITC, Zomato, Nestle India, ICICI Bank, NTPC and UltraTech Cement were the top gainers.

The Dow Jones declined 0.77 per cent to close at 42,992.21. The S&P 500 declined 1.11 per cent to 5,970.84 and the Nasdaq declined 1.49 per cent to close at 19,722.03 in the previous trading session on Friday. In the Asian markets, Bangkok and Seoul were trading in green while China, Japan, Jakarta and Hong Kong were trading in red.

Foreign institutional investors (FIIs) sold equities worth Rs 1,323.29 crore on December 27, while domestic institutional investors bought equities worth Rs 2,544.64 crore on the same day. Asian shares edged lower on Monday as high Treasury yields challenged lofty Wall Street equity valuations while underpinning the US dollar near multi-month peaks.

Global Market Reactions and Future Predictions

Tech and growth stocks dragged Wall Street's main indexes lower on Friday, at the end of an upbeat holiday-shortened week that was driven by expectations around a traditionally strong period for markets. Benchmark stock market indices opened marginally lower on Monday, dragged by a decline in auto, metal and energy sector stocks in early trade.

Adani Enterprises gained over 2% in early trade. Adani Enterprises Limited led the gainers on Nifty50 in early trade with a rise of 2.73%, followed by Adani Ports and Special Economic Zone which gained 1.47%. Apollo Hospitals Enterprise advanced 0.94%, while Shriram Finance Limited added 0.62%, and Bharti Airtel rounded out the top gainers with a 0.43% increase.

On the declining side, Trent Limited led the losses with a drop of 1.32%, followed by Infosys which fell 0.84%. Mahindra & Mahindra declined 0.83%, while Titan Company slipped 0.79%, and JSW Steel Limited decreased by 0.72%.

The broader market painted a mixed picture, with the Nifty Midcap 100 ending the session flat at 54,044, while the Nifty Small Cap index fell by 0.53% to 17,507. The RSI has entered the oversold zone, accompanied by a bearish crossover. While the overall chart setup remains weak, the selling pressure appears to have eased following a prolonged correction. In the short term, the index may recover towards 23,700-23,800. On the downside, support is positioned at 23,200-23,300, he added.