On Friday, December 20, 2024, Indian equity markets experienced a significant downturn, with the BSE Sensex plummeting 1,176.46 points (1.49%) to close at 78,041.59, and the NSE Nifty50 declining 364.20 points (1.52%) to settle at 23,587.50.
The downturn was broad-based, affecting various sectors:
- Realty and IT & Telecom: Both sectors declined by over 3%.
- Auto, IT, and PSU Bank: Each sector fell by more than 2%.
The Nifty Bank index, which monitors 12 public and private bank stocks, dropped 816.50 points (1.58%) to close at 50,759.20.
In the broader market, the Nifty Smallcap 100, Nifty Midcap 100, and Nifty Microcap 250 indices fell by 2.19%, 2.82%, and 2.27%, respectively.
Major contributors to the decline included:
- Tech Mahindra: Decreased by 3.97%.
- Mahindra & Mahindra: Fell by 3.60%.
- IndusInd Bank: Dropped by 3.53%.
- Axis Bank: Declined by 3.28%.
- Tata Motors: Decreased by 2.73%.
Conversely, JSW Steel, Nestle India, and Titan were among the few gainers.
Investor wealth diminished by over ₹10 lakh crore during the session, with the cumulative market capitalization of all BSE-listed companies decreasing from ₹451.14 lakh crore to ₹441.09 lakh crore.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market’s decline to global factors, stating, “Disappointment regarding the slower-than-anticipated rate cuts by the US Fed has adversely affected global market sentiment. This bearish outlook is particularly impacting the domestic market, which is already contending with high valuations & low earnings growth.”
The market’s downturn reflects investor concerns over global economic policies and their potential impact on domestic financial markets.