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.
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