Track stock movements, market trends, and key highlights for informed investing
The Indian stock market faced selling pressure on December 18, 2024, as global uncertainties weighed on investor sentiment. Both the BSE Sensex and Nifty 50 opened lower and continued to trade in the red, following weak global cues and cautious activity ahead of critical monetary policy decisions from major central banks worldwide.
At 11 AM, the BSE Sensex was down by 392.96 points or 0.49%, trading at 80,291.49, while the Nifty 50 fell 105.80 points or 0.43% to trade at 24,230.20. The subdued market reflected concerns over foreign fund outflows, mixed global economic signals, and heightened volatility.
Sectoral and Broader Market Performance
The Pharma and Healthcare indices emerged as bright spots, reflecting gains of 0.64% and modest support from FMCG and IT sectors. The Pharma index led the way, buoyed by buying interest in stocks like Sun Pharma, which climbed 1.32%. IT and FMCG stocks, such as Tech Mahindra, HCLTech, and ITC, also contributed to limiting broader market losses.
In contrast, sectors like Media, PSU Banks, Auto, Realty, Oil, and Financial Services traded in the red. The Nifty Media index fell 1.12%, becoming the top sectoral laggard, followed by Auto and PSU Banks. Stocks like Power Grid Corporation, BPCL, Larsen & Toubro, and Maruti Suzuki dragged the indices lower.
The broader market also reflected weakness, with the Nifty Midcap 100 down 0.49% and the Nifty Smallcap 100 lower by 0.38%. The India VIX, a gauge of volatility, rose 3.15%, signaling heightened risk perception among investors.
Top Gainers and Losers
On the BSE Sensex, Sun Pharma led the gains, rising 1.32%, followed by Tech Mahindra, HCLTech, and ITC. Stocks like Tata Motors fell sharply by 2.07%, while Power Grid Corporation, Larsen & Toubro, and Maruti Suzuki remained key laggards.
On the Nifty 50, Tech Mahindra emerged as the top gainer, advancing 0.82%. It was followed by Nestle India, Apollo Hospitals, Reliance Industries, and HDFC Bank. On the downside, Power Grid Corp led losses, dropping 1.33%, followed by BPCL, JSW Steel, and Trent.
Primary Market Action
Amidst weakness in secondary markets, the primary market witnessed strong activity. Shares of One Mobikwik Systems debuted on the BSE at ₹442.25, reflecting a premium of 58.51% over the issue price of ₹279.
Vishal Mega Mart also had a positive debut, listing at ₹110, translating into a 41% premium over its IPO price of ₹78. Similarly, Sai Life Sciences opened at ₹660, a 20.2% premium against its issue price of ₹549.
These listings underscored strong investor interest in India’s growing IPO market, even as broader equity indices struggled.
Foreign Institutional Activity
Foreign Institutional Investors (FIIs) turned net sellers, intensifying pressure on Indian equities. On December 17, FIIs sold stocks worth ₹6,409.86 crore, reflecting a cautious stance ahead of key policy announcements from the US Federal Reserve.
Global investors have been reallocating capital towards US equities and bonds amid expectations of monetary easing by the Federal Reserve. The US Fed’s stance later in the day will remain a critical factor influencing FIIs’ activity in emerging markets like India.
Global Market Overview
In the Asia-Pacific region, stock markets showed mixed trends. Japan’s Nikkei 225 fell 0.28% as weak trade data weighed on sentiment. The Topix, however, edged higher by 0.24%, reflecting selective buying.
South Korea’s Kospi rose 0.92%, while Australia’s S&P/ASX 200 gained 0.22%. Hong Kong’s Hang Seng and China’s Shanghai Composite also traded higher by 0.95% and 0.56%, respectively.
In the US, equity markets ended lower on December 17. The Dow Jones Industrial Average fell 0.61% to close at 43,450.55, marking its ninth consecutive session of losses. The S&P 500 declined 0.39% to 6,050.63, while the Nasdaq Composite dropped 0.32% to settle at 20,109.06.
US retail sales data came in stronger than expected, indicating resilient consumer spending. However, concerns over inflation and the Federal Reserve’s anticipated 25 basis-point rate cut tempered investor enthusiasm.
In Europe, the STOXX 600 fell 0.42%, weighed down by energy and healthcare stocks, while China’s weak retail sales report raised fears of slowing global demand.
Commodities and Currency Markets
In the commodities market, crude oil prices fell amid renewed concerns over global demand. US crude declined 0.89% to $70.08 per barrel, while Brent slipped 0.97% to $73.19 per barrel.
Gold prices faced pressure as the US dollar strengthened. Spot gold fell 0.32% to $2,643.84 per ounce, while US gold futures declined 0.48% to $2,638.80 per ounce.
The US Dollar Index rose 0.18% to 106.98, as investors digested economic data and anticipated a gradual easing of rates by the Federal Reserve.
Key Takeaways and Outlook
Indian equity markets faced headwinds due to weak global cues, FII outflows, and caution ahead of the US Federal Reserve’s policy announcement. Sectoral indices reflected a mixed performance, with Pharma, Healthcare, and IT sectors managing to buck the trend, while broader market indices underperformed.
IPO listings, however, remained a bright spot, with companies like One Mobikwik Systems, Vishal Mega Mart, and Sai Life Sciences witnessing strong debuts, signaling investor confidence in primary markets.
Global markets remain on edge, awaiting critical monetary policy decisions from the US Federal Reserve, Bank of Japan, Bank of England, and others. Any shift in policy direction will likely influence market movements across equities, commodities, and currencies.
The volatility reflected in the India VIX index indicates a heightened risk environment, suggesting that Indian markets could witness further swings in the coming sessions. Investors will keep a close watch on the Federal Reserve’s statement, as it will shape market trends globally and domestically.
