Stock Market Today: Nifty Records Worst Week In Over Two Months On Weak Global Cues
The Nifty 50 and Sensex extended sell off due to hawkish outlook from Federal Reserve. Get live updates on Indian stock markets here on Dec. 20.
KEY HIGHLIGHTS
US Futures Decline Before PCE Data Release
Futures contract of Dow Jones fell 0.6%, that of S&P 500 fell 0.8%, and Nasdaq 100's contract fell over 1% as of 3: 39 p.m.
Economic Data Releases And Events For Dec 20
UK: Confederation of British Industry Realised Sales — 4:30 p.m.
UK: Bank of England Quarterly Bulletin
US: Federal Reserve Bank of San Francisco President Mary Daly will speak in an interview conducted by Bloomberg TV
US: Core PCE Price Index — 7:00 p.m.
US: Personal Income — 7:00 p.m.
US: Personal Spending — 7:00 p.m.
Europe: Consumer Confidence — 8:30 p.m.
US: University of Michigan Revised Consumer Sentiment — 8:30 p.m.
US: University of Michigan Inflation Expectation — 8:30 p.m.
Australia: Conference Board Leading Index — 9:00 p.m.
Nifty, Sensex End At The Lowest Level In Over One Month; Tech Mahindra, Axis Bank Top Losers: Market Wrap
The NSE Nifty 50 and BSE Sensex recorded the worst week months as hawkish outlook from the US Federal Reserve rattled global markets across the globe. The benchmark indices ended at the lowest in over a month on Friday.
The Nifty 50 ended 364.20 points or 1.52% down at 23,587.50, and the Sensex ended 1,176.45 points or 1.49% down at 78,041.59.
During the session, the Nifty 50 declined 1.15% to the day's low of 23,676.20, and the Sensex fell 1.15% to 78,07.73.
The market–cap of Nifty 50 companies declined Rs 2.9 lakh crore to Rs 186.97 lakh crore, according to data on NSE.
The US Fed reduced the federal fund target range by 25 basis points to 4.25–4.50% after its two-day policy meeting on late Wednesday. The US central bank raised the inflation and economic growth outlook. It also reduced rate cut projection to 50 basis points in 2025 compared to 100 basis points earlier.
The Dollar index is trading at over two–year high, and the US treasury yield above 4%. A rise in safe–haven assets prompts investors to take out their money from risky assets like emerging markets equities and currencies.
Following the hawkish outlook, equity markets in the US, Asia, and Europe slumped, which weighed on the Indian equities.
The Indian rupee depreciate beyond 85 a dollar mark against the US to a record low of 85.11 tracking dollar strength.
"The Nifty-50 Index and Sensex ended down around 4.25% down in the past week. Both the mid-cap index and small-cap index lost around 2% outperforming large-caps. Global equity markets witnessed various degrees of sell-off (Brazil down 10%, Japan down 5%, S&P-500 down 4%) in the past week, in the aftermath of the US Fed policy meeting, where the US Fed cautioned on the pace of future rate cuts." said Shrikant Chouhan, head, equity research, Kotak Securities.
HDFC Bank Ltd., Reliance Industries Ltd., Axis Bank Ltd., Tata Consultancy Services Ltd., and Larsen & Toubro Ltd. dragged the Nifty 50 index.
ICICI Bank Ltd., Dr. Reddy's Laboratories Ltd., JSW Steel Ltd., and Nestle India Ltd. added to the benchmark index.
Shares of Tech Mahindra, Mahindra & Mahindra Ltd., IndusInd Bank Ltd., Axis Bank Ltd., and Adani Enterprises Ltd. dragged the benchmark the most.
Dr. Reddy's Laboratories, JSW Steel, ICICI Bank, Nestle, and HDFC Life Insurance Co. were top gainers.
On NSE, all 12 sectors closed lower on Friday with the NSE Nifty Realty declining the most.
Broader indices underperformed. BSE Midcap closed 2.4% down and BSE Smallcap closed 2.1% down.
All sectoral indices on the BSE fell. BSE Power fell the most.
Market breadth was skewed in the favour of sellers. As many as 2,929 stocks fell, 1,061 rose, and 95 remained unchanged on the BSE.
On a weekly basis, the NSE Nifty 50 fell 4.77%, which the most since Sept 30. The BSE Sensex fell 4.98%, which is the worst decline since June 13.
This week, 11 sectors declined and one advanced out of 12. The NSE Nifty Metal rose the most, and the NSE Nifty Pharma outperformed other sectoral indices.
Rupee Closes Stronger Against Dollar
Rupee strengthened by six paise to close at 85.02 against the US dollar. It closed at 85.08 on Thursday, according to data on Bloomberg.
Market At Close
The NSE Nifty 50 recorded the worst weekly decline since Sept 30.
The BSE Sensex posted the worst week since June 13.
The Nifty 50 and Sensex declined nearly 5% on the week ended on Dec 20.
Tech Mahindra Ltd., Axis Bank Ltd. and IndusInd Bank Ltd. were top loser in the benchmark index.
Dr. Reddy's Laboratories Ltd., JSW Steel Ltd., and ICICI Bank Ltd. top gainer in the benchmark Nifty 50 index.
The NSE Nifty Midcap 150 ended 2.41% down at 21,050.60.
The NSE Smallcap 250 ended 2.01% down at 17,693.65.
