Domestic equities ended the last trading session of 2023 lower snapping a five-day winning run as investors booked profits. Selling was concentrated in banks and IT, two sectors having the biggest weights in Nifty and Sensex.
The 30-share Sensex was down 170.12 points or 0.23 percent closing at 72,240.26, and the Nifty 50 was down 47.30 points or 0.22 percent to end the day and year at 21,731.40. Despite weakness, market breadth was in favour of gainers. About 1,758 shares advanced, 1,533 shares declined, and 54 shares unchanged.
Overall, both indices, along with all broader market indices, finished 2023 on an upbeat note as the benchmark indices Nifty 50 and BSE Sensex hovered near all-time highs, gaining 20 percent and 18 percent, respectively, through the year.
"The market witnessed mild profit booking on the last trading day of the year," said Vinod Nair, Head of Research at Geojit Financial Services.
"While the euphoria is expected to continue during the start of the next year on account of the exuberance of rate cuts and the drop in bond yields. Oil prices, on the other hand, fell by 10 percent during the year, which could ease inflationary pressure and support the operating performance of the corporates. We feel that though the outlook on broader indexes is moderate in the short to medium term, the large caps will maintain their vibrancy due to strong earnings growth and in anticipation of the continuation of premium valuation."
Broader market indices outperformed with Nifty Smallcap 100 rising 0.61 percent and Nifty Midcap adding 0.8 percent. Nifty 500, the broadest index on NSE, jumped 0.15 percent.
Stocks & Sectors
Among sectoral indices, Nifty PSU Bank was the biggest loser, down 0.64 percent. Nifty Bank and Nifty IT fell about half a percent each. Nifty Auto was the biggest gainer, up over a percent. Nifty Realty and Nifty Metal were other big gainers.
Tata Consumer and Tata Motors were the biggest gainers among Nifty 50 stocks, rising 4.61 and 3.38 percent, respectively. Bajaj Auto, Nestle India, Adani Enterprises and Britannia were among other big gainers.
Bharat Petroleum saw profit booking and the stock plunged over 3 percent, SBI, ONGC and Infosys were other losers from the index.
OUTLOOK for Jan 1
Rupak De, Senior Technical Analyst at LKP Securities
Nifty remained sideways during the session, fluctuating within the range of 21650-21750. A doji pattern has formed on the daily chart, indicating indecisiveness in the market. This sentiment requires confirmation through a decisive breakout above 21750 or a breakdown below 21650. If it falls below 21650, the Nifty could potentially decline towards 21500. Conversely, if there's sustained trading above 21750, the index might aim for 22,000.
Shrey Jain, Founder and CEO SAS Online
Looking ahead, it is recommended for investors to capitalize on every market dip by opting to buy rather than sell, considering the strong foundational factors (macros) supporting India. Traders are advised to closely monitor and trail their stop-loss accordingly.
Ajit Mishra, SVP - Technical Research, Religare Broking
We may see further consolidation in the index and it would be healthy after the recent surge. We expect Nifty to hold the 21,300-21,500 zone in case of a dip during consolidation and reiterate our positional target of 22,150 level. Participants should stay focused on the selection of stocks and prefer index majors.
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