Ai bot
Stock market today: Indian benchmark indices declined on Monday, with consumer stocks leading the downturn following Godrej Consumer Products’ disappointing third-quarter outlook and automotive shares falling after poor vehicle sales data. The NSE Nifty 50 declined 0.24% to 24,619 points, whilst the BSE Sensex decreased 0.25% to 81,508.46. The day’s losses followed three consecutive weeks of gains for the benchmark indices since their correction in November.
The previous week saw approximately 2.3% growth, marking the strongest performance since June, following the Reserve Bank of India’s decision to reduce the cash reserve ratio on Friday.
“Some consolidation and time correction should be the order of the day, given the markets’ recent trajectory” Devang Mehta, director of equity advisory at Spark PWM was quoted as saying by Reuters.
Analysts suggest that the markets might experience minimal movement in upcoming sessions before US and domestic inflation data releases this week.
Consumer stocks experienced the steepest sectoral decline of 2.2%, primarily due to Godrej Consumer Products falling 8.7% after warning about weak quarterly performance.
Major Nifty 50 decliners included Hindustan Unilever, Tata Consumer and Nestle India.
The automotive sector declined 0.8% following FADA’s report of decreased November sales in passenger and commercial vehicles.
Tata Motors shares fell 2.2%, placing it among the day’s significant Nifty 50 decliners.
However, small-caps and mid-caps indices rose 0.2% and 0.5% respectively, continuing their twelve-session positive streak.
“Small and midcaps are seeing sustained interest because the recent market correction has taken away some of the froth in terms of valuations,” said Spark PWM’s Mehta.
This represents the longest winning sequence for small-caps in eight months and mid-caps in one year.
In notable corporate developments, tyre manufacturer Ceat’s shares surged 10.3% following its announcement to acquire Michelin’s Camso brand for $225 million.
