Indian stock markets saw a sharp decline on December 19, 2024, following a sell-off in global markets triggered by the US Federal Reserve’s projections for fewer rate cuts in 2025. The Nifty 50 index plummeted 1.33 per cent or 321 points, opening at 23,877.15 points, while the BSE Sensex dropped 1.44 per cent or 1,153.17 points, opening at 79,029.03 points.
Global market trends affect domestic markets
The decline in Indian markets was due to the US. The Fed's decision to curtail its rate cut cycle, meaning a rate cut in 2025. The change raised expectations observed as an economic stimulus, previously expected to spur growth and boost prices, declined as a result. Global markets dominated by the US, including a sharp decline, with Asian markets following suit.
Sectoral indices bearish across the board
All NSE regional indices suffered heavy losses, with the Nifty IT, Nifty Metal, and Nifty PSU Bank sectors facing very strong selling pressure, and experts predicted a further decline if the support level is breached.
Mixed performance in Nifty 50 stocks
Only three of the Nifty 50 stocks saw gains at the time of filing, led by Dr. Reddy, Hindustan Unilever, and ITC, which showed good growth. Broader market sentiment continued to plummet.
Global markets reflect similar trends
Asian markets mirrored the Indian market’s negative performance. Japan’s Nikkei 225 fell 0.96%, Hong Kong’s Hang Seng dropped 1.06%, South Korea’s market was down by 1.58%, and Taiwan’s index saw a 1.35% decline. In the US, major indices like the S&P 500 and Nasdaq also witnessed sharp drops, reflecting the broader global economic unease.
Outlook for Indian markets
Experts suggest that the Indian markets may continue to experience downward pressure due to the weak global cues. Investors are advised to closely monitor key support levels to gauge potential market movements in the coming days.
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