The trend of decline in the Indian stock market is showing no sign of stopping. The stock market had a slow start on the fourth trading day of the week. The 30-share BSE Sensex opened 41 points lower at 84,518. At the same time, Nifty of National Stock Exchange fell by 53 points to 25,765. The decline in Asian markets is also affecting the Indian stock market. The weekly expiry of Sensex derivative contracts today is also likely to impact investor sentiments. Indian equity indices closed with a decline on Wednesday. Nifty fell 41.55 points or 0.16 per cent, while Sensex fell 120.21 points or 0.14 per cent to close at 84,559.65.
Top Losers and Gainers
Sun Pharma, TMPV, M&M, NTPC, Maruti Suzuki, Kotak Bank, Tata Steel and BEL are among the top losers in trading so far. Whereas, Infosys, HCLTech, TechM, TCS, SBI and ITC are among the top gainers. Sectorally, Nifty Auto, Nifty Pharma and Nifty Realty were the top losers, falling up to 1% each. At the same time, Nifty IT and PSU Bank indices were trading up 0.9% and 0.25% respectively. In the broader market, Nifty Midcap index was down 0.10% and Nifty Midcap index was down 0.10%.
global market situation
On December 17, American stock markets closed with a decline. The Nasdaq Composite fell the most, 1.81 percent, followed by the S&P 500, which was down 1.16 percent, and the Dow Jones Industrial Average, which was down 0.47 percent. The impact was felt in Asian markets today. Nikkei fell 1.53 percent at the open, while Topix was also down 0.57 percent. South Korea’s Kospi fell 1.36 percent, and the small-cap Kosdaq was down 1.13 percent. In Australia, the S&P/ASX 200 index was down 0.3 percent in early trading.
Due to decline in stock market
Selling by foreign investors – Continuous selling by foreign institutional investors (FIIs) is increasing pressure on the market. On Wednesday, December 17, foreign investors sold Indian shares worth ₹1,172 crore. At the same time, domestic investors (DIIs) bought shares worth ₹769 crore. This is the fourteenth consecutive day that foreign investors have sold Indian shares. Foreign investors have withdrawn more than ₹21,073 crore from the Indian stock market so far in December.
Falling Rupee – The record fall of Rupee is also impacting the market. The rupee fell 9 paise to a record low of 90.87 against the US dollar in early trade on Tuesday. However, the rupee recovered significantly on Wednesday, December 17 and strengthened by 0.7% against the dollar. The Indian rupee opened at 90.35 on Thursday, almost equal to its previous closing price of 90.37 against the US dollar.
US Employment Data – Although the US released strong employment data in November, with 64,000 jobs added, investors are now cautious about the December employment data, as these data will determine the direction of US interest rates, which will also impact many other countries. Therefore, investors seem to be avoiding taking excessive risks.
Additionally, investors are awaiting the Bank of England’s interest rate decision in the UK, the European Central Bank’s policy announcement for the euro zone, and inflation and unemployment data from the US. Also, the Bank of Japan has started its two-day policy meeting and is expected to raise interest rates to 0.75% on Friday.
