The Indian stock market experienced a significant downturn on December 20, 2024, with both the BSE Sensex and NSE Nifty indices falling for the fifth consecutive session. The Sensex dropped 387.08 points (0.49%) to close at 78,830.97, while the Nifty declined by 90.20 points (0.38%) to settle at 23,861.50. The decline was largely attributed to a weakening rupee, which fell below the 85 mark against the dollar, and increasing foreign institutional investor (FII) outflows, which reached Rs 12,229 crore this week alone.
Investor sentiment was further dampened by the U.S. Federal Reserve’s hawkish stance, which has led to expectations of fewer rate cuts than initially anticipated, strengthening the dollar and weighing on emerging market equities, including Indian stocks. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the FII pullback is especially impacting large-cap stocks in the financial sector.
However, not all sectors saw declines. IT stocks like Infosys and TCS showed resilience, buoyed by positive earnings from Accenture, which reported stronger-than-expected results and raised its guidance for FY25. Despite the market’s overall weakness, analysts believe that opportunities may arise for retail investors willing to take a contrarian approach, particularly in quality large-cap stocks. The broader outlook remains uncertain, with volatility and concerns about India’s trade deficit continuing to influence market dynamics.
Disclaimer: Business Headline provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
