Stock market closes flat amid year-end consolidation; Focus shifts to US CPI data

The stock market closed nearly flat on Wednesday, reflecting a consolidation phase as the year-end approaches. The BSE Sensex dipped by 13.34 points, settling at 81,496.70, while the NSE Nifty declined by 20.25 points to close at 24,630.30.

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Market breadth on the Nifty 50 index was mixed, with 26 stocks advancing and 23 declining. Among the top gainers were Trent, Bajaj Finance, Britannia, Shriram Finance, and Hero Motocorp, which saw notable buying interest.

In contrast, JSW Steel, Adani Ports, NTPC, SBI, and Axis Bank were among the top losers, dragging the indices lower. Foreign investors continued their bullish stance, purchasing equities worth Rs1,285 crores on Tuesday, indicating sustained interest in the Indian markets despite near-term volatility.

Traders and investors are keenly watching the release of the US Consumer Price Index (CPI) inflation data, a key event scheduled for today. The data is expected to provide direction for global markets, particularly influencing central bank policy decisions and bond yields.

Market analysts suggest that the consolidation phase is typical during this period as participants assess economic data and corporate earnings before making significant moves.

The focus on global cues, especially inflation trends, will likely determine the near-term trajectory of the Indian markets. Vinod Nair, Head of Research, Geojit Financial Services, said, "The Indian market exhibited subtle movements, reflecting mixed sentiments prevailing in global markets ahead of the US CPI inflation data release, which could influence the FED policy. The US dollar strengthened, while bond yields saw a marginal uptick."

He added, "Defensive sectors, including FMCG and pharmaceuticals, experienced an uptick. Additionally, the metals sector saw gains driven by optimism surrounding potential stimulus measures from China."

VLA Ambala, Co-Founder, Stock Market Today, said, "The Indian government's decision not to issue new sovereign gold bonds, coupled with a steep rally in gold prices, has fueled increased investment demand for gold, a classic hedging instrument. Meanwhile, investors are exploring investment opportunities in gold stocks and ETFs, as evidenced by the near tripling of gold ETF flows."

She added, "In the context of high inflation and strong demand, the Finance Minister recently acknowledged the high inflationary pressure in India, describing it as a major global challenge. On the other hand, the depreciation of the Indian rupee continues to weigh on global GDP valuations, raising economic concerns. The new Governor of the RBI now faces the important task of adjusting monetary policy to counter inflation while working with the government."

(ANI) Ends SHIVANII/HECTOR/