Markets settle marginally lower on muted GDP growth projection; HDFC, ICICI Bank major drag

Equity indices end lower amid volatile session, subdued sentiment due to lower economic growth projections and global cues.

Equity benchmark indices Sensex and Nifty ended marginally lower in a volatile session on Wednesday (January 8, 2025), as investors stayed on the sidelines ahead of the earnings season amid lower economic growth projections.

Unabated foreign fund outflows and mixed global market cues also dented sentiments.

However, buying in bellwether stocks TCS and Reliance Industries managed to restrict a steep decline in markets, traders said.

The 30-share BSE benchmark Sensex fell 50.62 points or 0.06% to settle at 78,148.49. During the day, it dropped 712.32 points or 0.91% to 77,486.79.

The NSE Nifty skidded 18.95 points or 0.08% to 23,688.95.

“Slowing economic growth projections and caution ahead of Q3 numbers added volatility in the market. However, the market witnessed a recovery from the day’s low owing to the accumulation of beaten-down blue-chip stocks and in expectation of government reforms in the upcoming budget to lift the tepid economy. The near-term sentiment is likely to be subdued due to the rise in U.S. bond yield and fear of fewer rate cuts by the Fed,” Vinod Nair, Head of Research, Geojit Financial Services, said.

From the 30-share blue-chip pack, Adani Ports, UltraTech Cement, Larsen & Toubro, Sun Pharma, HDFC Bank, ICICI Bank, NTPC and State Bank of India were the major laggards.