Mid-market update: NIFTY50 and SENSEX correct further; HDFC Bank, ICICI Bank and L&T top index draggers

Indian equity markets continued to trade in red in late-morning deals due to selling by funds and retail investors. Hectic selling in Power Grid, Tata Motors, ICICI Bank, Axis Bank, and HDFC Bank dragged the markets lower. Meanwhile, broader indices were also trading in red, with the BSE Midcap index and Small-cap index falling in the range of 0.15-0.35%.

Apart from weaker broader market sentiment, IPO investors’ sentiment was boosted by the robust listing of three public issues. The Mobikwik IPO was listed at a 58% premium, followed by Vishal Mega Mart at 33% and Sai Life Sciences at an 18% premium on Wednesday. After the bumper listing, shares further advanced in the range of 20% to 30%, making investors richer on day 1 of the listing.

Market participants were cautious after US President-elect Donald Trump reiterated his intention to impose reciprocal tariffs in retaliation for the high tariff imposed by India on the import of certain American products.

Trump also said India and Brazil were among the countries that imposed high tariffs on certain US products. Meanwhile, investors awaited the Federal Reserve's interest-rate decision for directional cues.

On the global front, Asian markets were trading mixed as investors assessed trade data out of Japan. The country’s exports grew 3.8% in November year-on-year, beating expectations of a 2.8% increase by street.

The SENSEX traded at 80200.91, down by 471.54 points or 0.58% after trading in a range of 80217.13 and 80868.02. Nine stocks advanced on the index, while 21 stocks declined.

The broader indices were trading in red; the BSE mid-cap index was down by 0.18%, while the small-cap index was down by 0.31%.

The NIFTY50 traded at 24,187.40, down by 148 points or 0.61% after trading in a range of 24206.15 and 24394.45. The index had 15 advancing stocks and 35 declining stocks.

Asian markets were trading mixed; Hang Seng advanced 217.42 points or 1.09% to 19,917.90, KOSPI increased 32.88 points or 1.32% to 2,489.69, Shanghai Composite strengthened 33.64 points or 0.99% to 3,395.13 and Taiwan Weighted added 87.96 points or 0.38% to 23,105.97. However, Straits Times fell 18.91 points or 0.5% to 3,781.02, Jakarta Composite plunged 41.9 points or 0.59% to 7,115.83 and Nikkei 225 slipped 185.68 points or 0.47% to 39,179.00.