Stock markets closes flat, outlook remains positive
The stock market closed on a flat note on Wednesday driven by gains in defence stocks and robust growth in the services sector.
ANI
Dec 04, 2024 16:38 IST
Mumbai (Maharashtra) [India], December 4 (ANI): The stock market closed on a flat note on Wednesday driven by gains in defence stocks and robust growth in the services sector.
The Sensex rose 110.58 points to settle at 80,956.33, while the Nifty edged up by 2.35 points, closing at 24,461.25. Despite the slight uptick, market breadth remained negative, with 19 Nifty companies advancing and 31 declining.
HDFC Life, HDFC Bank, NTPC, Apollo Hospital, and Bajaj Finserv emerged as the top gainers in the Nifty index.
On the other hand, Bharti Airtel, Cipla, Bajaj Auto, Adani Ports, and Tata Motors led the list of losers, reflecting a mixed performance across sectors.
The session witnessed a significant boost in defence stocks after the Defence Acquisition Council (DAC) approved an acquisition proposals worth Rs21,772 crore. Mazagon Dock Shipbuilders and Garden Reach Shipbuilders surged nearly 5 per cent, while Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics posted gains of 2-3 per cent.
According to VLA Ambala, Co-Founder of Stock Market Today, "The DAC's approval significantly strengthens the portfolios of defence companies, attracting strong buying interest. This development highlights the growing prominence of the defence sector in the market."
India's dominant services sector further bolstered market optimism by recording strong growth in November. The sector's expansion was driven by robust domestic and international demand, record hiring, and improved business sentiment, despite the sharpest price hikes in a decade.
The improved business outlook has reinforced positive market sentiment, offering further support to the indices.
Ambala also highlighted technical trends, noting that the Nifty index tested the 24,500 level and formed "a Doji candlestick pattern" on the daily chart, signalling a favorable outlook for mid-term and long-term buyers. "Investors should consider accumulating quality mid-cap and small-cap stocks," Ambala suggested. (ANI)
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