Equity benchmarks opened lower on Tuesday, the last trading session of 2024, dragged down by technology stocks amid weak global cues and concerns over elevated US Treasury yields.

The Sensex opened lower at 77,982.57 from its previous close of 78,248.13 and has further declined to 77,715.46 as of 9.50 AM, losing 532.67 points or 0.68 per cent. Meanwhile, the Nifty opened at 23,560.60 compared to its previous close of 23,644.90 and is currently trading at 23,515.05, down by 129.85 points or 0.55 per cent.

Technology stocks led the decline, with Infosys dropping 2.36 per cent, followed by TCS at 2.14 per cent, Tech Mahindra falling 2.03 per cent, and Wipro declining 1.71 per cent. Adani Enterprises also saw a decline of 1.82 per cent.

Defense equipment manufacturer Bharat Electronics Limited emerged as the top gainer, rising 1.54 per cent, followed by Kotak Mahindra Bank at 1.53 per cent, ONGC gaining 1.33 per cent, State Bank of India up 0.72 per cent, and Tata Steel adding 0.29 per cent.

“Markets are preparing to move into the New Year with caution since uncertainty is high and valuations are stretched,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “The high U.S. bond yield and strong dollar will ensure that FIIs will continue to sell on every rise.”

The market faced technical resistance near the 200-day Simple Moving Average at 23900/79000 after an early morning rally. “Due to profit booking at these elevated levels, the market corrected sharply,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Global markets showed weakness as Wall Street closed lower on Monday, with traders taking profits before the year-end. China’s factory activity growth in December missed analysts’ expectations, coming in at 50.1 against the expected 50.3, indicating Beijing’s stimulus measures have yet to significantly boost the economy.

“December has been weak for equity markets globally. S&P 500 is down by 2.34 per cent and Nifty is down by 2.6 per cent,” Vijayakumar added.

In the commodities market, gold and silver extended their decline in a volatile session after U.S. pending home sales surged in November. “Gold is near its key support level of $2,584 per troy ounce,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

Looking ahead, market experts suggest a cautious approach. “The broader range for the Nifty has been 23500-24000 for the last 5 trading sessions and either side breakout would decide the further trend,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

The year 2024 has been notable for Indian markets, with Nifty recording its ninth consecutive year of positive returns despite significant foreign institutional investor (FII) selling. “Nifty steadily climbed from January to September, reaching a historic high of 26,277.35, before giving up some gains to still close the year with an impressive 8 per cent rise,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Investors are now awaiting third-quarter results starting January 10th for further cues on corporate performance amid the ongoing growth slowdown.