The stock market faced significant declines today as key indices posted sharp losses. The NIFTY 50 dropped by 332.25 points, closing at 24,336.00, marking a decrease of 1.35%. The SENSEX followed suit, shedding 1,064.12 points to end at 80,684.45, reflecting a decline of 1.30%. Similarly, other major indices like NIFTY BANK and NIFTY IT were also hit hard, with declines of 1.39% and 0.53%, respectively.
The market’s weakness today was driven by a combination of factors, including global economic concerns, profit booking, and caution ahead of upcoming earnings reports. Among the broader indices, BSE Smallcap was also under pressure, falling by 0.52%.
Overview of Contents
Top Gainers
In a downbeat market, Cipla stood out as one of the few gainers, with a modest rise of 0.17%, reflecting some resilience in the healthcare sector amidst overall market declines.
| Company | Current Price (₹) | % Gain |
|---|---|---|
| Cipla | 1,450.85 | 0.17 |
Top Losers
On the losing side, Shriram Finance took a heavy hit, falling by 5.12%, making it the biggest loser of the day. Other notable decliners included Grasim (-3.18%), Bharti Airtel (-2.84%), and Hero Motocorp (-2.73%).
| Company | Current Price (₹) | % Loss |
|---|---|---|
| Shriram Finance | 2,976.90 | -5.12 |
| Grasim | 2,599.70 | -3.18 |
| Bharti Airtel | 1,615.30 | -2.84 |
| Hero Motocorp | 4,415.10 | -2.73 |
| JSW Steel | 966.85 | -2.37 |
Reasons for Market Fall Today
India’s trade deficit widens to an all-time high: India’s merchandise trade deficit surged to a record $37.84 billion in November 2024, up from $27.1 billion in October. This was driven by a rise in imports, which increased by 8.35%, outpacing a modest 2.17% growth in exports. November’s exports were $32.11 billion, while imports reached $69.95 billion. This widening trade gap may have contributed to the market’s decline, as it signals economic challenges, including a higher import bill and weaker export performance.
SEBI bars FPIs from issuing ODIs with derivatives as underlying: The Securities and Exchange Board of India (SEBI) has barred foreign portfolio investors (FPIs) from issuing offshore derivative instruments (ODIs) with derivatives as underlying or using derivatives to hedge ODIs in India. FPIs can now only issue ODIs with securities (excluding derivatives) as the underlying, and they must be fully hedged on a one-to-one basis. The new rules aim to eliminate regulatory arbitrage and require FPIs to have separate registrations for ODI issuance, along with detailed ownership disclosures, especially for those with large exposures or concentrated holdings in Indian markets.
As per technical analysis:Â the market is expected to trade within a range of 24,230 to 24,750. This range indicates key support at 24,230 and resistance at 24,750. Any movement outside this range could signal a potential breakout or further decline, depending on the market’s momentum and global cues. Traders should closely monitor these levels for potential price action and market direction.
The India VIX has increased from 13.2 to 14.8, indicating a rise in market volatility. This uptick suggests that investors are expecting higher uncertainty and risk in the market, which may lead to increased price fluctuations. As a result, market participants should be cautious, as higher volatility often signals potential market corrections or heightened nervousness among traders.
Market Sentiment and Conclusion
Today’s market downturn reflects a broader trend of caution in the market as investors reacted to various internal and external factors. While Cipla managed to eke out a small gain, most other sectors, especially financials and metals, struggled with considerable losses. The banking sector and IT stocks saw declines due to rising concerns over interest rates and global economic pressures.
Investors are advised to stay vigilant and consider a defensive approach in the near term, focusing on sectors that show relative strength, such as healthcare, while monitoring global developments closely.