Stock market today: Nifty 50, Sensex slide for 2nd day on weakness in RIL, FMCG stocks | Stock Market News

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.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services said, “The domestic market exhibited a range-bound trade after last week’s rally. The rise in oil prices amid tensions in the Middle East, along with investors caution ahead of key economic data like India & US CPI data and ECB policy this week, impacted the sentiment. Capital goods and metal stocks have seen some buying interest in expectation of China stimulus after an unexpected drop in inflation.”

Sector Performance: Metals shine bright, FMCG loses ground

The Nifty FMCG index emerged as the worst-performing sectoral index, sliding 2.22%. A weak mid-quarter update from Godrej Consumer Products triggered a broader sell-off across the sector, pulling down 14 of the 15 index constituents into red.

Godrej Consumer Products shares plunged 8.7% to an 11-month low. Other FMCG stocks, including Tata Consumer, Marico, HUL, Dabur, and Colgate-Palmolive, also ended the session with losses ranging from 2% to 4%.

Indian FMCG companies are currently grappling with twin challenges: rising commodity prices and weak demand from urban consumers, which severely impacted margins in the second quarter. The mid-quarter update from Godrej Consumer Products suggested that demand conditions are expected to remain weak in the current quarter as well.

Other sectoral indices, including Nifty Media, Nifty Auto, Nifty Oil & Gas, Nifty Pharma, Nifty PSU Bank, and Nifty Energy, closed with losses of up to 2.02%. On the positive side, the Nifty Metal index emerged as the top sectoral gainer, rising 0.62%. The rally was driven by expectations that China might introduce additional stimulus measures to support its economy, which has been under pressure since the pandemic.

29 stocks end in negative territory

Out of the 50 stocks in the Nifty index, 29 closed in the red today, with FMCG stocks emerging as the biggest laggards. Tata Consumer Products was the top loser, falling 4.2% to close at ₹934 per share, while HUL dropped 3.3%, ending the session at ₹2,400 per share.

Other FMCG stocks, including Nestle India, Britannia Industries, and ITC, all saw declines of up to 1.7%.

In the auto sector, Tata Motors, Hero MotoCorp, Eicher Motors, Mahindra & Mahindra, and Maruti Suzuki India experienced losses ranging from 0.3% to 2.2%. Heavyweight stocks like Reliance Industries and State Bank of India also closed lower, with losses of 1.3% and 0.7%, respectively.

In the private banking sector, HDFC Bank gained 0.76%, while other stocks, including Axis Bank, IndusInd Bank, and ICICI Bank, ended the session with losses of up to 1.8%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.