Indian Stock Markets End Lower on Global Cues
Indian equity benchmarks extended their losing streak on December 19, 2024, primarily due to a hawkish stance adopted by the US Federal Reserve. The Fed’s indication of slower rate cuts in 2025 dampened global investor sentiment, leading to a sell-off in Asian markets, including India. the Indian stock market has been relatively volatile, influenced by a combination of global and domestic factors.
Market Performance
Indian equity benchmarks ended lower on December 19, 2024, as a combination of global and domestic factors weighed on investor sentiment. The benchmark Nifty 50 index declined by 1.02%, while the Sensex shed 1.20%.
- BSE Sensex: Plunged 964.15 points (-1.20%) to close at 79,218.05
- NSE Nifty50: Fell 247.15 points (-1.02%) to finish at 23,951.70
Top Gainers and Losers
The broader market witnessed a significant sell-off, with 39 out of the 50 Nifty stocks closing in the red. The Nifty Bank index was particularly hard-hit, plunging 564 points. Banking, financial services, and IT stocks were among the major laggards.
Top Gainers:
The pharmaceutical sector bucked the trend, with Dr. Reddy’s Laboratories emerging as the top Nifty gainer after a positive analyst rating. other major gainer were
- JP Power Ventures Ltd.: Surged 6.15% to ₹19.67, driven by sustained investor interest.
- KFin Technologies Ltd.: Jumped 6.04% to ₹1,409, reaching a 52-week high.
- Ipca Laboratories Ltd.: Climbed 5.37% to ₹1,594.50, recovering from recent selling pressure.
Top Losers:
In large caps, Bajaj Finserv, Asian Paints, and JSW Steel were among the top losers, with Asian Paints hitting a near four-year low following the departure of key executives.
loosers from other indices were majorly as mentioned below…
- Craftsman Automation Ltd.: Fell 5.42% to ₹5,356.65.
- Triveni Turbine Ltd.: Slumped 5.32% to close the session at ₹780.80.
- LTI Mindtree Ltd.: Dropped 5.29% to ₹6,226, reflecting broader weakness in IT stocks.
Post-Market Snapshot
- Indices:
- Nifty 50: 23,951 (-1.02%)
- Sensex: 79,218 (-1.20%)
- India VIX: 14.51 (-0.97%)
- Sectoral Highlights:
- Top Gainer: Nifty Pharma (+1.72%)
- Top Losers: IT (-1.26%), Financial Services (-1.21%)
Overall, the market’s performance was influenced by a combination of factors, including global economic uncertainty, domestic inflationary pressures, and sector-specific developments.
Key News:
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- SpiceJet settles $16M dispute with Genesis.
- Indian govt. may allow some sugar companies for export, if any surplus will be there, after blending of ethanol.
- Stove Kraft partners with IKEA to develop cookware.
- TCS Recovered from initial losses after dismissing rumors of Starbucks’ exit from India.
- PTC Industries acquires UK’s Trac Precision Solutions.
- Zydus receives USFDA approval for Lidocaine and Prilocaine Cream USP.
- JSW Steel merges its U.S.-based subsidiaries.
- IPCA Labs. Saw a 5% rise in its share price after a promoter stake sale, which was perceived positively by investors.
- Honda Motor and Nissan Motor, Japan’s second- and third-largest automakers, are in discussions to strengthen their alliance, which could lead to a full merger and a significant transformation of Japan’s automotive industry.
- JK Cement Ltd. won the commercial e-auction for the Mahan Coal Mine with a 107.4-million-ton reserve
Key Factors Shaping the Market:
- Global Economic Uncertainty: Concerns about a potential global recession, rising interest rates, and geopolitical tensions have impacted investor sentiment.
- Domestic Economic Indicators: Domestic economic data, such as GDP growth, inflation, and industrial production, will continue to influence market trends.
- Corporate Earnings: Strong corporate earnings can boost market sentiment, while weak results can lead to sell-offs.
- Foreign Institutional Investor (FII) Flows: FII inflows have been a significant driver of the Indian market. Any change in global investor sentiment or geopolitical events can impact these flows.
- Government Policies: Government policies, including fiscal measures, regulatory reforms, and infrastructure investments, will play a crucial role in shaping the market’s trajectory.
Investor Perspective:
While the short-term outlook may be uncertain, India’s long-term growth story remains intact. Investors should adopt a cautious approach and focus on quality stocks with strong fundamentals. Portfolio with optimum diversification across the asset classes can help to minimize the risks attached with market volatility. It’s crucial to stay updated on global economic developments, geopolitical events, and domestic factors that may impact the Indian stock market. Consulting with a financial advisor can provide valuable insights and help develop a suitable investment strategy.
- Note : – Information shared in all our articles are just shared for knowledge and study purposes. Don’t ever consider it as buy or sell recommendation. Readers/Viewers are advised to take advice of their financial advisers before making final investment decisions.