Stock market today: Sensex, Nifty 50 fall for second day as geopolitical tensions mount, rate cut hopes fizzle out

Stock market today: Frontline indices the Sensex and the Nifty 50 closed in the red for the second consecutive session on Wednesday, January 3, as rising geopolitical tensions prompted investors to take profits in high valuation stocks. Mounting geopolitical tensions are weighing on market sentiment as the hopes of rate cuts taper off.

The substantial market upswings over the past two months have elevated market valuations. With the most favourable factors already factored into the market, investors are booking profits at elevated levels. Global cues were weak, adding more pressure on market sentiment. Caution prevailed among investors as they awaited the release of minutes from the US Federal Reserve's December meeting.

Sensex opened at 71,832.62 against the previous close of 71,892.48 and touched its intraday high and low of 71,862 and 71,303.97 respectively. The 30 share pack finally closed with a loss of 536 points, or 0.75 per cent, at 71,356.60. Nifty 50 opened at 21,661.10 against the previous close of 21,665.80 and touched its intraday high and low of 21,677 and 21,500.35 respectively before settling at 21,517.35, down 148 points, or 0.69 per cent.

Mid and smallcap indices, on the other hand, ended higher, outperforming the benchmark indices. The BSE Midcap index closed 0.20 per cent higher at 37,081.58 while the BSE Smallcap index ended with a gain of 0.30 per cent at 43,103.61. (More to come) Livemint tops charts as the fastest growing news website in the world to know more.

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