Sensex tanks 470 pts from day’s high, Nifty falls ahead of monthly F&O expiry; broader markets under pressure

Benchmark indices Nifty and Sensex erased all gains within an hour of opening on December 26 to trade in the negative ahead of the monthly F&O expiry. Trading volumes, however, remained subdued due to year-end holidays as investors wrapped books for the year. Today also marks the final monthly expiry of 2024.

At 10:40 pm, the Sensex was down 40.13 points or 0.05 percent at 78,432.74, and the Nifty was up 4.20 points or 0.02 percent at 23,731.85. About 1380 shares advanced, 1908 shares declined, and 124 shares unchanged. Nifty mid and smallcap indices were under pressure with both of them trading 0.5 percent lower.

“The markets are likely to consolidate in a narrow range as we approach year-end, given subdued activity and the absence of major triggers. The broader market trend remains positive, with the current correction seen as healthy and part of an ongoing uptrend rather than a shift to a bearish phase,” Ruchit Jain, Vice President of Technical Research at Motilal Oswal said in a conversation with Moneycontrol.

He added that price-wise, the downside appears limited, but a time-wise correction may persist until earnings revive, which will be the next significant trigger for the market. Additionally, risks like rising bond yields and a strong dollar index could weigh on market sentiment, as emerging markets generally share an inverse correlation with the dollar.

In early trade, Nifty PSU Bank and private bank indices climbed nearly 1 percent each, driven by strong performances from HDFC Bank, SBI, and ICICI Bank. However, both indices pared losses to traded in the red. On the other hand, auto stocks extended their gains for the second consecutive session, with Maruti Suzuki, M&M, and Tata Motors leading the charge. Other sectors such as Nifty FMCG, Oil and Gas, and Consumer Durables also erased gains to trade lower in the range of 0.3 percent. Nifty Realty performed the worst, falling almost a percent.

A host of market experts say that action in the broader market is largely stock-specific and Q3 remains a major trigger to decide the course.

BPCL shares rose almost 2 percent after the company emerged as the lowest bidder for the 150 MW solar PV power project of NTPC. Upon finalization of the contract, the project will be developed over a two-year timeline at an estimated capital outlay of Rs 756.45 crore and is projected to generate annual revenue of approximately Rs 100 crore by producing around 400 million units of clean energy.

Panacea Biotec’s share price rallied 5 percent on December 26 following the company received a Letter Of Award (LoA) from United Nations International Children’s Emergency Fund (UNICEF) for the supply of 115 million doses of its bivalent oral polio vaccine (bOPV). The contract is worth Rs127 crore and is to be executed in the calendar year 2025.

UltraTech Cement shares edged higher after it inked an Energy Supply Agreement and a Share Subscription and Shareholders Agreement to acquire a 26 percent equity stake in Clean Max Sapphire, a renewable energy generation and transmission company. In a parallel development, UltraTech has finalized the acquisition of an additional 32.72 percent stake in India Cements, raising its total shareholding to 55.49 percent and establishing India Cements as its subsidiary.

“The sentiment stays weak, with intraday recoveries facing selling pressure and no strong positive momentum in sight. For the last two sessions, the 23900 mark has acted as a significant resistance, aligning with the 200 DSMA. For the upcoming monthly expiry, the 23,900–24,000 zone remains a critical hurdle, and a break beyond this range is required to spark positive momentum leading into the year-end,” Sameet Chavan, Head of Technical and Derivative Research at Angel One, said. “On the downside, the 23,600–23,500 range, representing the lower end of last Friday’s bearish candle, serves as immediate support,” he added.

BPCL, SBI Life, Maruti Suzuki, HDFC Life and Coal India were the top gainers on the Nifty. Asian Paints, TCS, Trent, IndusInd Bank, and HUL were the major laggards.