The Indian stock market fell sharply on Thursday, December 19, 2024, as a global sell-off was spurred by hawkish comments from US Federal Reserve Chairman Jerome Powell. At close, the BSE Sensex fell 964.15 points or 1.20% to 79,218.05, while the NSE Nifty50 fell 247.15 points or 1.02% to close at 23,951.70. Both these indices traded in narrow ranges all through the session, which goes to show that selling pressures are quite sustained.
The broader Indian stock market also mirrored this bearish sentiment, with the Nifty Midcap100 and Smallcap100 indices losing 0.28% and 0.51%, respectively. All sectoral indices, except Pharma and Healthcare, ended in the red, highlighting a widespread decline. Financials, IT, Consumer Durables, and Metal stocks bore the brunt, each dropping over 1%.
Pharma Sector Shines Amid Market Turmoil
Despite the downturn in the Indian stock market, there have been select pockets, like Pharma, that provided hope for a turnaround. Dr. Reddy’s Laboratories was among the top gainers, reporting a 4.04 percent rise. The defensive plays by Cipla and Sun Pharma attracted investors as the volatility did not entirely offset losses in sectors like banking and IT, heavily sold during the period.
However, leaders underperformers were Bajaj Finance JSW Steel and Asian Paints which fell by over 2%. Market experts attributed this weakness to cues from the global arena notably Powell’s remarks, a long period of high interest rates had weighed on rate-sensitive sectors.
Global Sentiments Dampen Indian Stock Market
Indian market sell-off is consistent with the trend across other Asian markets that have reacted sharply to the hawkish talk from Powell. Also adding pressure to this decline was a rise of 0.95 percent for India VIX at 14.51. According to some analysts, further support levels are going to come in only when the Nifty crosses to the level of 23,700; it is believed to slide more if crossed below the mentioned mark.
Broader market dynamics reflected worries over FII outflows, but experts felt that a few sectors are oversold and this might be buying opportunities. Strategically shifting toward defensives like Pharma seems to be gaining momentum, so cautious optimism seems to surface in the face of uncertainty.
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