Closing Bell: Market Fails To Hold Opening Gains, Ends Lower; Sensex & Nifty Record Marginal Declines

Indian equity markets closed in the red on December 24, failing to sustain the gains from the previous session's relief rally. A lack of fresh triggers, coupled with a weak performance from metal and PSU bank stocks, weighed on investor sentiment. The benchmark Nifty 50 slipped 26 points to settle at 23,728, while the Sensex lost 67 points, ending at 78,473.

The Nifty Bank index dropped 85 points to close at 51,233, and the Midcap index fell by 35 points, ending the session at 57,058. Market breadth remained neutral, with an advance-to-decline ratio of 1:1.

Metal stocks, which had rallied on Monday, reversed course to emerge as the top losers, dragging the indices lower. Meanwhile, FMCG stocks lent some support to the broader market, while auto stocks had a mixed session, influenced by December vehicle registration data.

The metal sector saw a sharp decline, reversing gains from the previous session. Weak demand outlook and profit booking contributed to the sector's underperformance. Shares of Tata Group companies gained amid reports of an upcoming Tata Capital IPO, providing some respite in an otherwise tepid trading session.

Biocon saw a 5% jump in its share price after the US FDA cleared its Bengaluru facility and approved a key product. IndiGo climbs 4% on a positive brokerage note. Reports of a potential excise duty cut on oil products lifted stocks of city gas companies, with gains of up to 2%.

Siemens continued its downward trajectory, falling nearly 15% over three sessions. Greaves Cotton rallied 10% after its electric mobility arm filed for an IPO. Amber Enterprises jumped 8% on reports that the company is considering demerging its electronics business.

Other notable movers included Akums Drugs, which ended 1% lower despite securing a massive Rs 1,800 crore order win.

The market sentiment remained cautious as analysts suggested that indices are likely to trade in a narrow range in the coming sessions. The absence of significant macroeconomic or corporate developments has left the markets without strong upward momentum.

Adding to the subdued mood, the Indian Rupee fell to a record low of Rs 85.20 against the US Dollar.