December 19, 2024
New Delhi, India
Market Highlights
- Benchmark Indices:
- Sensex: Dropped 964.15 points (-1.20%) to close at 79,218.05.
- Nifty: Declined 247.15 points (-1.02%) to settle at 23,951.70.
- Sectoral Performance:
- IT, Auto, and Banking sectors faced the steepest declines, each falling nearly 2%.
- Pharma and Healthcare were the only sectors to close in the green.
- Key Stocks:
- Top Losers: Asian Paints, Bajaj Finance, Bajaj Finserv, JSW Steel, Grasim.
- Top Gainers: Dr Reddy’s (+4.04%), Cipla, Sun Pharma, Apollo Hospital.
- Broader Markets:
- Nifty Midcap100 fell 0.28%.
- Nifty Smallcap100 dropped 0.51%.
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Factors Driving the Decline
- US Federal Reserve’s Stance:
- Fed announced a 25-basis-point rate cut but signaled only two quarter-point cuts in 2025, lower than market expectations.
- This hawkish outlook led to a sell-off in global markets.
- Bond Yields and Dollar Strength:
- US 10-year bond yields hit a seven-month high of 4.524%.
- The strengthening dollar further pressured emerging markets.
- Global Markets Weakness:
- Dow Jones Industrial Average recorded its worst day in over four months.
- Weak global cues weighed on Indian equities.
- Rupee Depreciation:
- The Indian Rupee hit a historic low of ₹85 against the US dollar, reflecting macroeconomic concerns.
Market Breadth and Volatility
- Negative market breadth with 2,320 stocks declining against 1,553 advances on the BSE.
- India VIX, the fear gauge, rose 0.95%, indicating heightened market volatility.
Outlook
The sharp correction in the Indian markets reflects a combination of weak global cues, Fed policy impact, and macroeconomic concerns. Investors are advised to stay cautious, focus on defensive sectors like Pharma, and await clarity on future monetary policy developments.
Breaking News: Rupee Hits Record Low of ₹85 Against US Dollar
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