Indian equity markets struggled to gain traction on Monday, December 9, as significant declines in FMCG and heavyweight stocks like Reliance Industries dragged the benchmark indices lower for the second consecutive session. While banking stocks, particularly from the HDFC Bank and the IT pack, provided some support to the market, they were insufficient to lift the indices higher.
The Nifty 50 fell 0.31% to close at 24,609, while the Sensex declined 0.23%, settling at 81,520. However, mid-cap and small-cap stocks continued their winning streak. The Nifty Midcap 100 rose 0.51% to 59,002, marking its seventh straight session of gains. Similarly, the Nifty Smallcap 100 extended its rally for the 12th session, inching up 0.19% to 19,528.
Asian stocks ended today’s session mostly in the green, with Hong Kong’s Hang Seng surging 2.76%. The majority of these gains occurred during the final hour of trading after Chinese President Xi Jinping and other top leaders announced plans to adopt a more “relaxed” monetary policy to stimulate economic growth in the coming year, according to recent media reports.
China, the world’s second-largest economy, continues to grapple with challenges such as weak domestic consumption, a prolonged property sector crisis, and rising government debt. These issues pose risks to Beijing’s ability to meet its official growth target for the year.
In response, Beijing has introduced a series of measures since September to support growth. These include interest rate cuts, the removal of homebuying restrictions, and efforts to alleviate local government debt burdens. In October, the central bank also reduced two key interest rates to record lows.
Despite these moves, economists caution that more direct fiscal stimulus targeting domestic consumption will be necessary to fully revitalize the economy, especially amid concerns over a potential escalation in trade tensions with the United States.
Japan’s Nikkei 225 edged up 0.18%, closing the session at 39,160.5, while the Topix advanced 0.27% to end at 2,734.56. In contrast, South Korean stocks extended their downward trajectory on Monday, deepening losses in the aftermath of last week’s political turmoil.