Market Wrap, Dec 8: NIFTY50 below 26K, SENSEX down 610 pts; SMIDs underperform, NSE-listed cos mcap erodes ₹7 lakh crore, VIX up 8%

The Indian equity market ended nearly 1% lower on Monday, December 8, as broader market underperformed and realty stocks declined. Investor sentiment remained cautious amid continued foreign fund outflows.

IndiGo operator InterGlobe Aviation shares crashed nearly 10% to hit a low of ₹4,842.50 apiece after the country's largest airline flight cancellation continued amid operation disruptions.

Foreign investors have pulled out ₹11,820 crore from Indian equities in the first week of this month, primarily driven by the sharp depreciation of the rupee. According to exchange data, on Friday, the foreign institutional investors (FIIs) sold shares worth ₹438.90 crore, while the domestic institutional investors (DIIs) bought equities worth ₹4,189.17 crore on a net basis.

Globally, indices in Asia closed mixed as caution prevailed amid deteriorating China-Japan relations and a host of central bank decisions awaited later this week.

Japan's Nikkei edged down marginally 0.01%, Singapore's Straits Times declined 0.54%, and Hong Kong's Hang Seng fell 1.27%, while South Korea's KOSPI and the Shanghai Composite rose 1.32% and 0.54%, respectively.

On Wall Street, the US stocks ended with modest gains on Friday as the Dow Jones Industrial Average rose 0.22%, the S&P 500 advanced 0.19%, and the tech-heavy Nasdaq advanced 0.31%. Meanwhile, economic data elevated expectations for a Federal Reserve interest rate cut later this week.

Here are the key developments of Monday’s session that you need to know

As many as 3,247 stocks traded on the NSE on Monday. Out of this, only 580 advanced, and 2,580 declined, while 87 scrips remained unchanged.

This indicated that the market breadth was in favour of declines.

A total of 41 stocks hit their 52-week highs, while 429 stocks touched their one-year lows. Besides, 69 stocks hit their upper circuit limits, and 138 touched their lower circuit bands on Monday.

The market capitalisation of NSE-listed companies fell by ₹7.04 lakh crore from the previous session, ending at ₹461.54 lakh crore on Monday.

The volatility index India VIX zoomed 7.85% to end at 11.13 levels.

Dragged by Bharat Dynamics (-5.98%), HUDCO (-5.86%) and GMR Airports (-4.99%), the Nifty Midcap 100 index tanked 1.83% to end at 59,488.10.

The Nifty Smallcap 100 index slipped 2.61% to close at 17,051.65, weighed down by Kaynes Technology India (-11.53%), Aegis Vopak Terminals (-7.55%) and Data Patterns (-6.37%).

All sectoral indices ended the session in red, with Nifty Realty declining the most at 3.53%. Godrej Properties (-4.92%), Prestige Estate Projects (-4.78%), and DLF (-4.63%) emerged as the top losers in the pack.

Further, Nifty PSU Bank (-2.81%), Nifty Metal (-1.92%), Nifty Consumer Durables (-1.54%), Nifty Pharma (-1.34%), and Nifty Auto (-1.23%) were the other top sectoral losers.

As many as 47 stocks on the NIFTY50 index declined on Monday, while only 3 closed in green.

IndiGo was the biggest laggard, falling 8.62%, followed by Bharat Electronics (-4.92%), JSW Steel (-3.71%), Nestle India (-2.56%) and Shriram Finance (-2.52%).

On the other hand, Tech Mahindra, Wipro and HCL Technologies were the only gainers on the 50-share index, rising 1.22%, 0.35% and 0.12%, respectively.