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On Tuesday, December 26, the Nifty 50 exhibited resilience, opening at 21,365.20 and closing with a gain of 92 points, reaching 21,441.35, a surge of 0.43%.
The Sensex mirrored this optimism, opening at 71,097.78, touching an intraday high of 71,471.29, and closing 230 points higher at 71,336.80, a 0.32% increase.
The positive market sentiment persisted as investors maintained a high-risk appetite, encouraged by the recent decline in US inflation data, marking the first decrease in over three years. The subdued US inflation figures fueled expectations of earlier interest rate cuts by the US Federal Reserve, prompting a decline in the US dollar.
Meanwhile, the rupee faced a marginal slip of 3 paise, settling at 83.19 against the US dollar, influenced by a robust American currency and foreign fund outflows. Despite these challenges, positive equity market sentiment and lower crude oil prices cushioned the rupee’s fall, providing stability.
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Impact on the stock market
Except for Nifty Media (0.58% decline), IT (0.41% decrease), and PSU Bank (0.15% drop), all sectoral indices closed with positive results.
Nifty Oil & Gas (1.51% increase), Healthcare (1.25% rise), Metal (1.14% growth), Pharma (1.03% uptick), and Auto (0.98% gain) demonstrated substantial increases.
| Sector/Index | Performance |
| Information Technology | – 0.41% |
| Healthcare | + 1.25% |
| Oil & Gas | + 1.51% |
| Realty | + 0.24% |
| PSU Banks | – 0.15% |
Top gainers today
| Company | Price | Change (%age) |
| Divis Labs | 3,863.50 | + 4.56% |
| Hero Motocorp | 4,067.45 | + 3.35% |
| NTPC | 309.60 | + 2.25% |
| Adani Enterprises | 2,865.45 | + 2.03% |
| M&M | 1,662.25 | + 1.71% |
Top losers today
| Company | Price | Change (%age) |
| Bajaj Finance | 7,162.30 | – 1.82% |
| Bajaj Finserv | 1,645.30 | – 1.60% |
| Infosys | 1,543.95 | – 1.21% |
| TCS | 3,795.55 | – 0.74% |
| Tata Motors | 719.55 | – 0.71% |
Market aftermath: Impact on stocks
Infosys faces setback
Infosys shares experienced a 1% decline on the NSE as the company terminated a $1.5 billion agreement with an undisclosed global AI solutions provider. The deal, initially a 15-year commitment, was outlined in a Memorandum of Understanding (MoU) signed on September 14, 2023.
The terminated agreement reflects challenges faced by Infosys and the broader Indian IT sector amid subdued business in recent quarters. Although Infosys share prices initially slipped to ₹1,523, they partially recovered to close at ₹1,546.
The decline impacted the Nifty IT index, ending 0.41% lower. Infosys is set to announce Q3FY24 results on January 11.
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HFCL surges 26% in a month
HFCL, a leading telecom infrastructure firm, has surged 26% this month, marking a remarkable 300% increase in the last three years and an impressive 894% return over a decade.
Specialising in digital networks, optical fibre, and 5G products, HFCL has strategically benefitted from India’s anti-dumping duties on optical fibre imports, boosting domestic companies.
As 5G gains global prominence, HFCL introduced indigenous 5G Fixed Wireless Access (FWA) solutions and a 2 Gbps Unlicensed Band Radio. Securing substantial orders, including a ₹67 crore deal with a telecom provider, HFCL’s robust performance reflects its pivotal role in India’s digital and 5G landscape.
Crude oil prices rally
Crude oil prices increased last week, with Brent crude oil futures closing at $79.1 per barrel on the Intercontinental Exchange (ICE), marking a 3.3% appreciation. Similarly, crude oil futures on the MCX gained 2.5%, concluding the week at ₹6,163 per barrel.
Conclusion
In today’s market, Nifty and Sensex showcased some smooth moves, gaining 0.43% and 0.32%, respectively. Due to a decrease in US inflation, investors were optimistic and made moves accordingly. Infosys faced a minor fumble, but HFCL rocked the stage with a 26% surge. Crude oil prices swayed upward, making it a lively week.
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