Stock Market Today: Sensex, Nifty 50 Slip Slightly Amid India-US Trade Deal Uncertainty, Rupee Weakness

After opening lower, benchmark indices gradually regained momentum towards the end of the session on December 15. However, both Sensex and Nifty 50 closed lower, though marginally, than the previous session.

At close, Sensex was at 85,213.36, down 54.30 points, or 0.06 per cent, and Nifty 50 was at 26,027.30, down by 19.65 points, or 0.08 per cent.

The uncertainty over India-US trade deal and persistent foreign fund outflows pulled Rupee lower, which depreciated by 39 paise to touch a new record low of 90.95 against the US dollar. The weakness in currency also kept the equity markets bogged down.

Broader market indices remained mixed at the end of the session. Nifty Smallcap 100 rose 0.21 per cent, while Nifty Midcap 100 closed lower by 0.12 per cent. Nifty 500, which represents more than 92 per cent of the total free-float market cap of all NSE-listed stocks, ended unchanged. However, Nifty Microcap 250, tracking the top 250 most actively traded and valuable stocks beyond the Nifty 500 constituents, settled higher by 0.49 per cent, bucking the overall trend.

Auto Drags, FMCG, PSU Banks Lift

Among the sectoral indices, Nifty Auto closed lower by 0.91 per cent, followed by Nifty Pharma's 0.39 per cent decline, and Nifty Financial Services' 0.25 per cent fall.

On the other hand, Nifty FMCG, Nifty PSU Bank, and Nifty IT emerged as the top gainers among major sectoral gainers, rising 0.69 per cent, 0.46 per cent, and 0.29 per cent, respectively.

Nifty Bank, which tracks the 12 most liquid and valuable banking stocks, closed 71.85 points, or 0.12 per cent, higher at 59,461.80.

Nifty 50: Top Gainers & Losers

Among the Nifty 50 constituents, InterGlobe Aviation rose 2.05 per cent, Trent gained 1.22 per cent and Hindustan Unilever advanced 1.21 per cent, emerging as the top gainers of the day. HCL Technologies, Wipro, and Infosys were other top gainers in the 50-share index.

On the other hand, Mahindra & Mahindra (M&M) declined 1.90 per cent, Eicher Motors fell 1.56 per cent, ONGC slipped 1.18 per cent, Bajaj Auto slumped 1.04 per cent and JSW Steel dropped 1.03 per cent, emerging as the top losers of the day. Cipla, Adani Ports, Bajaj Finserv, Maruti Suzuki, and HDFC Life were other top losers of the day.

Stock Market Outlook

India’s wholesale price index (WPI)-based inflation remained in negative territory at 0.32 per cent in November on an annual basis, compared to a deflation of 1.21 per cent recorded in October, data released earlier today by Office of the Economic Adviser (OEA) showed.

The negative inflation rate was mainly driven by lower prices of food articles, mineral oils, crude petroleum, natural gas, basic metals and electricity.

A rise in WPI inflation can signal higher input costs for companies, which could put pressure on margins, particularly in sectors, such as metals, cement, chemicals and FMCG. On the other hand, a softer WPI print would suggest easing cost pressures, which could offer some comfort on the earnings front.

Secretary of the Department of Commerce Rajesh Agrawal earlier today said that government is "very close" to closing the initial framework deal with the US to lower reciprocal tariffs.

"We are very close on closing the initial framework deal but I don't want to put a timeline to it," Agrawal told reporters during a press briefing. "We have done six rounds of talks with the US where we have discussed both the BTA (Bilateral Trade Agreement) as well as an interim deal to lower reciprocal tariffs," Agrawal said.

Market participants will be tracking for further updates on the potential India-US trade deal, which could influence Rupee's direction and foreign fund inflows, thereby impacting the equity markets as well.

Investors will also be tracking a slew of key economic data release by the US. The world's largest economy is set to release unemployment rate, non-farm payrolls, and retail sales data on December 16. Further, US Bureau of Labour Statistics is set to release consumer price index (CPI)-based inflation for November on December 18, which will also be crucial in guiding investor sentiment.