What happened in the Indian stock market today?

On January 2, 2024, the benchmark Sensex experienced a decline of 379 points, attributed to profit-booking in bank and IT shares following recent substantial gains and fresh foreign fund outflows. 

The 30-share BSE Sensex settled at 71,892.48, marking a 0.53% decrease. Throughout the day, it reached a low of 71,613.74, reflecting a 0.91% decline. 

The broader Nifty closed at 21,665.80, down by 76.10 points or 0.35%. Among Nifty shares, 31 recorded declines, while 19 advanced.

Despite a negative start, market losses were mitigated by buying at lower levels, providing some relief.

You may also like: Here’s everything you need to know about Firstcry’s upcoming IPO

Impact on the stock market

VST, Arihant Super, Bhansali Engineering, GlaxoSmithKline Pharmaceuticals, Godrej Industries, GSFC, Gujarat State Petronet, JBM Auto, Lemon Tree, Lupin, Mankind Pharma, Satin Credit, Sigachi Industries, Subros and Sun Pharma Advanced among others, touched their 52-week high on the BSE.

Nifty Auto experienced a decline of 1.37%, followed by Private Bank, which saw a decrease of 1.17%. The IT sector also witnessed a downturn of 1.16%, while Realty showed a decrease of 1.04% in the sectoral indices.

Nifty Bank registered a decline of 0.98%. In contrast, Nifty Pharma exhibited a notable increase of 2.46%.

Top gainers today

Top losers today

Market aftermath: Impact on stocks

Also Read: India’s stock market: A global leader with 25% growth in 2023

HUL’s ₹ 447.5 crore GST demand notice

HUL shares dropped nearly 1% to ₹ 2,636 as the company faces a ₹ 447.5 crore GST demand, outlined in five orders from GST officials. 

The charges involve a ₹ 372.82 crore demand for tax on expatriate salaries and a penalty of ₹ 39.90 crore. In the past year, the FMCG giant has seen a modest 3.5% gain. The demands include excess GST availed of ₹ 8.9 crore and disallowed GST credit of ₹ 12.94 crore, with penalties attached.

Tata Motors hits ₹ 804, rises 1.5%

Tata Motors hits a new high at ₹ 804, rising 1.5% after a 5% YoY surge in December sales, reaching 77,855 units, surpassing estimates. Commercial vehicle sales increased 1% to 34,180 units, while passenger vehicle sales jumped 8% to 43,675 units. 

Tata Motors shares, up almost 13% in the past month. Its 2023 performance saw a price doubling, making it a top pick among auto stocks.

Vodafone Idea denies starlink talks

Vodafone Idea refuted discussions with Elon Musk’s Starlink, causing a 4% stock decline to ₹ 16.24 on January 2, following a substantial rise in the rumor. The clarification dismissed reports suggesting a potential 33% stake sale to Starlink. In the last six months, the stock soared by 118%.

Also Read: Connecting communities: A mobile broadband case study

Red Sea conflict sparks crude oil surge

Crude oil prices surged on Tuesday due to concerns over potential supply disruptions in the Red Sea region following recent attacks. The naval conflict heightened fears of a regional escalation, impacting the crucial Suez Canal, responsible for 12% of global trade. 

Brent Crude traded around $79 per barrel, raising concerns for India, a major oil importer, and potentially affecting stock market sentiment.

Conclusion

In summary, January 2, 2024, brought market fluctuations with the Sensex declining 379 points, impacting key players like HUL facing GST demands and Tata Motors hitting a new high. Vodafone Idea dispelled Starlink talks, causing a stock drop, while crude oil surged amid Red Sea tensions.

Stay tuned to StockGro for more such updates!