Indian Market Treads Water as Year-End Caution Sets In—Metal Stocks Flash Green

Indian equities painted a cautiously flat picture on Tuesday, with major indices barely budging amid muted trading activity ahead of the year-end holidays. Thin volume and absent macro catalysts kept participants sidelined, leaving both the BSE Sensex and NSE Nifty treading near unchanged territory.

The Numbers: Small Moves, Muted Momentum

The Sensex dipped a mere 20.46 points (0.02%) to finish at 84,675.08, oscillating within a narrow 336-point band throughout the session. Over on the National Stock Exchange, the Nifty50 slipped just 3.25 points (0.01%) to close at 25,938.85, staying pinned between 25,878 and 25,976 intraday. The flat-line action was the story—neither selling nor buying conviction showed up in force.

Sector Split: Clear Winners and Losers

While the headline indices yawned, beneath the surface a sector rotation was quietly playing out. Automobile and metal stocks led the charge, posting solid gains. Metal stocks, in particular, flashed a strong sign post for bullish sentiment, with Tata Steel jumping over 2% and Hindalco climbing 2.1%. The metal segment’s outperformance reflected broader strength in commodities and industrial recovery narratives.

PSU banking stocks also participated in the upside, with State Bank of India, Axis Bank, and others moving notably higher. Bajaj Auto was the standout gainer in the Nifty25, surging 2.3%, while JSW Steel and Shriram Finance each added around 2%.

Weakness hit technology, realty, and consumer discretionary names. Infosys and Indigo lost 1-1.4%, while Eicher Motors and Apollo Hospitals Enterprises shed 1.4-2%. Eternally slipped 2.1%. A handful of heavyweight drags came from HCL Technologies, Bajaj Finance, and UltraTech Cement with moderate losses. Consumer durables also underperformed, with Asian Paints easing 1%.

Secondary plays like Hindustan Copper surged 9% on strong volume, while Vedanta, Asahi India Glass, NMDC, and SAIL all moved up sharply. On the flip side, Coromandel International, Rajesh Exports, and MMTC declined sharply.

IPO Debut Drama

Gujarat Kidney and Super Specialty marked its stock market debut at Rs 120.75, implying a 6% pop versus the issue price. However, enthusiasm faded as the session wore on—the stock eventually settled at Rs 103.35, representing a near 10% discount to the offer price. A reminder that first-day IPO euphoria can fade fast.

Market Internals Turned Negative

Breadth deteriorated as the day progressed. On the BSE, 2,259 stocks closed in the red versus 1,919 advancing and 181 flat. The imbalance underscored that Tuesday’s flat indices masked underlying weakness among smaller players.

Economic Data Suggests Industrial Rebound

Off-market, government data painted a brighter picture for India’s manufacturing engine. Industrial production accelerated to a 6.7% year-over-year pace in November—the fastest clip since October 2023—compared to a revised 0.5% in October. Manufacturing output specifically expanded 8% annually, following a revised 2% previously. The data provided some reassurance that economic momentum hadn’t stalled despite the equity market’s holiday lethargy.

The takeaway: As year-end holidays loom, Indian indices are treading water, but pockets of strength—especially in metals and autos—hint that underlying demand remains intact. The real catalyst likely awaits the post-holiday trading resumption.