FX.co ★ Sensex Kicks Off December Subdued

The BSE Sensex in India experienced a downward correction on Monday, closing slightly lower at 85,642 after reaching a new peak of 86,159 in early trading. This movement followed a three-day upward trend and was influenced by profit-taking activities. Market volatility increased due to continuous foreign fund withdrawals and uncertainty surrounding pivotal trade discussions between the United States and India. Attention is now focused on the Reserve Bank of India's (RBI) upcoming policy announcement next Friday, with prevailing expectations of an interest rate reduction. Meanwhile, data revealed a minor downward revision in the growth figures for India's manufacturing sector for November, although the sector remained robust. Key decliners in the market included Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, State Bank of India, and Bajaj Finserv, which fell by 0.6% to 1.8%. On the upside, the automotive sector outshone others, led by Tata Motors and Maruti, which saw increases of 1.9% and 1.4%, respectively, driven by robust November sales supported by GST adjustments. Other notable gainers included Bharat Electronics, Kotak Mahindra Bank, Adani Ports, and HCL Tech, each rising by up to 1.3%.