After four days of range-bound trading, the Sensex and Nifty closed lower on December 12, as investors awaited India’s inflation and industrial output data, set to release after market hours. Broader markets, which had outperformed the benchmarks in recent weeks, faced selling pressure, with the BSE Midcap and Smallcap indices losing 0.6% and 1%, respectively.
Declines in oil & gas and FMCG stocks weighed on the indices, while the IT sector stood out, hitting a fresh high. This boost came after U.S. inflation data met expectations, raising hopes for a Federal Reserve rate cut next week. Meanwhile, Adani stocks drew attention, led by sharp gains in Adani Green Energy, which added ₹27,000 crore to the group’s market capitalization.
At the close, the Sensex dropped 236 points (0.3%) to 81,290, and the Nifty fell 93 points (0.4%) to 24,549. The market breadth was negative, with 1,440 stocks advancing, 2,395 declining, and 102 remaining unchanged.
Ajit Mishra, SVP of Research at Religare Broking, highlighted the significance of the upcoming CPI inflation data. “In its last meeting, the RBI Governor flagged inflation as a concern and described GDP growth challenges as temporary. If inflation eases, it could pave the way for a rate cut in February, making this data crucial for market sentiment,” he said.
The market’s tight trading range over the past few days indicates a consolidation phase, Mishra added, noting the Nifty needs to break decisively above 24,300 to signal a shift in trend. “Until then, we’re likely to see volatile swings within this narrow band,” he concluded.
Other trending themes like global crude oil prices, US Fed policy, and domestic growth indicators are also likely to influence market sentiment in the coming sessions.