Stock market today: Nifty 50, Sensex end lower as IT and banking stocks drag; realty stocks outperform | Stock Market News

Indian frontline indices slipped into the red on Monday, December 16, following a strong pullback seen in Friday’s session. Experts noted that investors exercised caution ahead of the US Federal Reserve meeting, with the policy outcome expected on December 18.

Pharma and PSU stocks surged in today’s session, while a sharp sell-off in IT and financial stocks dragged the indices lower. However, the broader markets withstood the pressure, ending the session in positive territory.

The Nifty 50 closed the session down by 0.40%, settling at 24,668, while the Sensex ended with a 0.47% loss at 81,748. In contrast, the Nifty Midcap 100 index concluded the session with a gain of 0.77% at 59,443, while the Nifty Smallcap 100 index also gained 0.64% to end the session at 19,531.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services said, “The national market traded in a range-bound manner while the realty sector outperformed in expectation of growing demand and a potential rate cut cycle in 2025.”

“A rise in manufacturing and service PMI suggests a positive turnaround in H2FY25 earnings, which may limit further downgrades in FY25 earnings. Rising US 10-year bond yields and a strengthening dollar led investors to remain watchful of the upcoming US Fed policy and its commentary for 2025 rates,” Vinod Nair added.

Sectoral Performance: Realty stocks shine; IT, Metals lag

IT stocks faced significant selling pressure due to uncertainty surrounding a potential US Fed rate cut in 2025, causing eight out of 10 index constituents to close in the red. As a result, the Nifty IT ended its five-day winning streak, dropping 0.74% to 45,653.

The Federal Reserve is widely expected to announce a 25-basis point interest rate cut on Wednesday, but traders are keenly awaiting the updated policy statement and forward guidance from Fed Chair Powell.

In the US, consumer prices rose at the fastest pace in seven months in November. Despite this, market experts believe the Fed is still likely to proceed with its third interest rate cut of the year, due to signs of a cooling labor market.

However, there are growing concerns that US President-elect Donald Trump’s policies, including corporate tax cuts and tariff measures on imported goods, could pressure the US fiscal deficit, which analysts believe could lead to delays in further Fed rate cuts.

On the positive side, realty stocks stood out in today’s trade, with the Nifty Realty index leading the sectoral performance, rising by 3.10%. Investors are betting on robust housing demand in 2025, fueled by new launches, expected rate cuts, and favourable demographic trends.

Global brokerage firm UBS expects the sector to maintain its growth momentum, supported by record-high affordability, favourable regulatory reforms, increased developer consolidation, and stabilising interest rates.

In addition to the realty sector, media stocks also performed well, along with gains in the Nifty PSU Bank and Nifty Pharma indices.

Swiggy hits record high, Paytm reaches 3-year peak

Swiggy’s share price surged by 15.11% in intraday trading, reaching a fresh all-time high of ₹612.40 per share, before closing at ₹596, marking a 12% gain. This spike followed a ‘Buy’ rating and a target price of ₹640 from Axis Capital, which cited a 27% valuation discount to peer Zomato as justified.

Axis Capital analysts consider Swiggy a compelling investment, emphasising its strong position as India’s second-largest player in both quick commerce (q-com) and food delivery.

Meanwhile, Paytm’s share price extended its bullish run, gaining 2.20% to reach a three-year high of ₹1,013 per share. With today’s gain, the stock’s return for December has risen to 12%. The stock has ended the last six months in positive territory and is set to conclude this month on a similar note.

Nifty 50: Key levels and trends

Rupak De, Senior Technical Analyst, LKP Securities said,” Nifty remained range-bound during the session, trading within the bands of 24,600 and 24,800. The sentiment remains positive for the short term as the index sustains above the critical moving average on the daily timeframe. On the higher end, the index may continue its upward movement towards 25,000 and beyond in the short term. On the lower end, crucial support is placed at 24,500.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.