Mumbai: The Indian stock market saw another day of declines on Tuesday, December 9, with benchmark indices extending losses for a second straight session. The Sensex fell 436 points, or 0.51%, to close at 84,666.28, while the Nifty 50 dropped 121 points, or 0.47%, ending the day at 25,839.65.^[1] Despite the broader market weakness, several individual stocks including IndiGo, Siemens, Larsen & Toubro, and ICICI Bank remained actively in focus due to significant corporate developments.^[2][3][4] Mid and small-cap segments, however, managed to recover morning losses and closed higher.^[1] ### IndiGo Faces Operational Headwinds InterGlobe Aviation, the parent company of IndiGo, continued to capture investor attention after widespread flight disruptions in early December.^[5][6] The airline faced significant operational strain due to revised pilot duty norms and crew shortages, leading to over 3,000 flight cancellations in a single week.^[5][6] This chaotic period left thousands of passengers stranded and caused IndiGo's market capitalization to plummet by an estimated Rs 53,000 crore in just 10 days.^[7][6][8] Global credit rating agency Moody's downgraded IndiGo's human capital issuer score to 4 from 3.^[9][7][8] This downgrade reflects the adverse impact of slower hiring on the airline's operations.^[9][7][8] The Directorate General of Civil Aviation (DGCA) has formed a four-member committee to investigate the issue and is expected to question IndiGo CEO Pieter Elbers and COO Isidre Porqueras on Wednesday, December 10, for further details.^[2][4][10] IndiGo has since reported that its network operations are largely back to normal, operating over 1,800 flights with a 90% on-time performance.^{[9][4][6][10]} The airline also confirmed it has issued refunds totaling Rs 827 crore for affected flights.^[10] Despite the recent turbulence, some international brokerages remain optimistic about IndiGo's long-term prospects. Citi Research maintained a 'Buy' rating on the stock with a target price of Rs 6,500, expecting normalization within the next month.^[11] Morgan Stanley also held an 'OverWeight' rating, setting a target price of Rs 6,540, citing improving demand trends.^[11] However, JM Financial maintained a 'reduce' rating, anticipating an 8-9% earnings hit in fiscal year 2026 if the disruptions continue for a total of 15 days.^[7][8] ### Siemens Sells Motor Business for Rs 2,200 Crore Siemens Ltd. was in focus after its Board of Directors approved a major strategic move. The company decided to sell its Low Voltage Motors and Geared Motors divisions, along with associated customer service operations, to Innomotics India Private Limited.^{[2][3][12][4][10]} The transaction will proceed as a slump sale for an enterprise value of Rs 2,200 crore, on a cash-free, debt-free basis.^[2][4][10] This divested business contributes approximately 6% to Siemens' total revenue.^[4] The sale signifies a portfolio realignment for the company, ahead of a 2026 completion timeline.^[4] On Tuesday, Siemens' stock experienced a daily decline of about 3.6%.^[13] Market analysts observed a shift in the stock's technical momentum, moving from a strongly bullish outlook to a more tempered mildly bullish stance.^[13] ### L&T Restructures Realty Business Infrastructure giant Larsen & Toubro (L&T) also made headlines with a significant corporate restructuring. The company's Board of Directors approved the transfer of its realty business undertaking to its wholly-owned subsidiary, L&T Realty Properties Ltd.^{[14][9][15][2][3][4][10]} This move is structured as a slump sale under a Scheme of Arrangement and aims to consolidate all real estate assets under one entity.^[15][2][3] The decision was made during a board meeting held on December 8, 2025, in Muscat, Oman.^[15] The transfer will require various regulatory approvals, including from shareholders, creditors, and stock exchanges.^[15][2] As part of the arrangement, L&T Realty Properties will issue 393 crore fully paid-up equity shares to the parent company.^[15][4] The realty business generated a standalone revenue of Rs 640.57 crore for the half-year ended September 30, 2025, representing 0.93% of L&T's standalone revenue.^[15] On Tuesday, L&T shares traded slightly lower, down 0.46% at Rs 3,978.30.^[14] Motilal Oswal maintained a 'Neutral' rating on L&T Technology with a target price of Rs 4,400.^[14] ### ICICI Bank Boosts Stake in AMC Arm ICICI Bank, a leading private sector lender, announced it executed a share purchase agreement to acquire an additional 2% stake in ICICI Prudential Asset Management Company (ICICI AMC).^{[9][16][4][10]} The acquisition, valued at Rs 2,140 crore, comes ahead of ICICI Prudential AMC's upcoming Rs 10,600 crore Initial Public Offering (IPO).^[16] The bank's strategic move aims to maintain its majority shareholding in ICICI AMC.^[16] The Reserve Bank of India (RBI) had previously granted approval for ICICI Bank to increase its stake.^[16] ICICI Bank shares declined on Tuesday following the announcement.^[16][17] The bank recently reported a robust performance, with a 5.2% year-on-year growth in its quarterly net profit for September 2025, reaching Rs 12,359 crore.^[18] The bank holds a substantial market capitalization of nearly Rs 9.9 lakh crore.^[16][17] ### Other Stocks in the Spotlight Several other companies also saw active trading and corporate announcements today. PhysicsWallah Ltd. approved a total investment of approximately Rs 488 crore across multiple subsidiaries.^[9] This includes Rs 400 crore in Penpencil Edu Services, Rs 20 crore in Finz Fintech, and Rs 50 crore in Finz Finance.^[9] The company's board also approved acquiring a third tranche of stake in Utkarsh Classes & Edutech, increasing its shareholding to 75.5% post-acquisition.^[9] Mahindra & Mahindra reported strong sales figures for November, with a 19.60% year-on-year growth in total sales volumes, reaching 91,839 units.^[10] Its exports also saw a healthy jump of 7.50% to 3,036 units.^[10] Fujiyama Power Systems experienced a significant surge, posting a 97.4% rise in net profit to Rs 62.9 crore in the September quarter, with revenue climbing 72.6% to Rs 567.9 crore.^[19][2] Caplin Point Labs gained attention after receiving final USFDA approval for its Acetaminophen Injection, strengthening its injectable portfolio in the US market.^[4] Nuvama Wealth Management Ltd. was also on investors' radar ahead of its upcoming share split.^[4] Bajaj Finserv reported that Bajaj General Insurance's November gross direct premium underwritten stood at Rs 3,999 crore.^[9] ### Market Outlook Remains Cautious The broader Indian market experienced a downturn, with the Sensex crashing over 1,000 points in two days.^[1] Market experts point to several factors contributing to the cautious sentiment. Uncertainty surrounding an India-US trade deal, a weakening rupee against the US dollar, and a general lack of fresh directional triggers are weighing on investor confidence.^[1][20] The domestic currency dropped by 10 paise to 90.15 against the US dollar in early trade on Tuesday.^[1] Experts believe the market may remain volatile until December quarter earnings start meeting expectations and the India-US trade deal is finalized.^[1]

AI Insights Hub