• The Indian stock market is fluctuating, with the Nifty 50 ending its previous session below its record high amidst mixed Asian equities.
• Several stocks are in focus today, with the Sensex rising 247.50 points or 0.31 per cent, while the Nifty gained 60.25 points or 0.25 per cent.
• Market experts advise buying on dips as long as the index holds above 24,000, with 23,800 as a closing-basis stop-loss.
• The market outlook will be guided by Q3 results, crude oil price, Foreign Institutional Investors (FIIs), and domestic economic data.

The Indian stock market has been a whirlwind of activity recently, with the Nifty 50 ending its previous trading session 2,272.6 points below its record high of 26,277.35. This comes amidst fluctuating Asian equities, with markets in Seoul, Jakarta, Hong Kong, Bangkok, China, and Japan showing mixed results in early trade.

At 10:35 a.m., the Sensex had fallen 148 points to 79,074, while the Nifty dropped 65 points to 23,939.  The earnings season is set to kick off with Tata Consultancy Services (TCS) this week.

Market watchers will also be keeping a close eye on economic data such as the HSBC Composite PMI, HSBC Services PMI, Industrial Production (IIP), and Fiscal Year GDP Growth for further cues on the market's direction.

Several stocks are in focus today, including HDFC Bank, ITC, Vedanta, Bandhan Bank, ICICI Bank, NTPC Green Energy, Tata Elxsi, Quess Corp, HG Infra Engineering, and Indian Bank. At around 9.32 am, the Sensex was trading at 79,470.61, rising 247.50 points or 0.31 per cent, while the Nifty was trading at 24,065 after gaining 60.25 points or 0.25 per cent.

On the National Stock Exchange (NSE), 678 stocks were trading in green, while 1,302 stocks were in red. The Nifty Bank was down 139.60 points or 0.27 per cent at 50,849.20. The Nifty Midcap 100 index was trading at 57,823.65 after dropping 107.40 points or 0.19 per cent, and the Nifty Smallcap 100 index was at 18,949.75 after declining 83.95 points or 0.44 per cent.

Market Trends and Expert Opinions

Market experts have noted that the December auto numbers indicate that the much-discussed urban demand deceleration is exaggerated. They believe that buying will resume in these resilient domestic segments, supporting the market on declines. They advise traders to consider buying on dips as long as the index holds above 24,000, with 23,800 as a closing-basis stop-loss to manage risks effectively.

On the sectoral front, selling was seen in the PSU bank, Financial Service, Pharma, FMCG, Metal, and Realty sectors. In the Sensex pack, Titan, Bajaj Finance, Infosys, Bajaj Finserv, M&M, TCS, Tech Mahindra, HCL Tech, Zomato, and Axis Bank were the top gainers. On the other hand, Kotak Mahindra Bank, IndusInd Bank, Tata Steel, PowerGrid, NTPC, Maruti, Asian Paints, and SBI were the top losers.

Internationally, the Dow Jones gained 0.80 per cent to close at 42,732.13. The S&P 500 gained 1.26 per cent to 5,942.50 and the Nasdaq gained 1.77 per cent to close at 19,621.68 in the last trading session.

External Factors and Market Outlook

However, the external macro construct continues to be unfavourable with the dollar index at 109 and the 10-year US bond yield at 4.62 per cent. Experts suggest that Foreign Institutional Investors (FIIs) are likely to continue selling until the yields decline and the dollar stabilises. On January 3, FIIs sold equities worth Rs 4,227.25 crore, and domestic institutional investors bought equities worth Rs 820.60 crore.

The market outlook for this week will be guided by Q3 results, crude oil price, FIIs, and domestic economic data. This situation is reminiscent of the 2008 financial crisis when the market was highly volatile, and investors were closely monitoring economic indicators and corporate earnings for cues.