Share Market: India’s benchmark indices, Sensex and Nifty 50, settled down in red on Friday, December 20, 2024. The Sensex (index with top 30 firms) tumbled by massive, 1176.46 points to settle at 78,041.59 level. Nifty50 (index with top 50 firms) declined by 364.20 points to settle at 23,587.50 points.
Meanwhile, Sensex and Nifty 50, settled at 82,133.12 level on last Friday, December 13. Nifty50 settled at 24,768.30 points during the same period.
This means that Sensex has dropped 4,091.53 points this week, whereas broader index Nifty50 tumbled 1,180.8 points during the same period.
Additionally, foreign investors withdrew an amount of Rs 21,612 crore from Indian equities in November. These investors had pulled out Rs 94,017 crore from Indian stock market in October 2024. However, these investors invested Rs 21,789 crore from the Indian equities this month so far.
Why Is The Share Market Falling?
Stock market experts say that, ahead of the Christmas, the muted sentiment dominated the Indian stock market. This was fueled by the US Federal Reserve’s cautious stance on interest rate cuts. The approach made the US dollar stronger, prompting investors to buy into bond and currency markets.
Furthermore, foreign investors’ selling Indian equities is another reason why domestic investors’ attempts to buy at low prices (bottom fishing) are not gaining momentum.
Meanwhile, the US Federal Reserve (US Fed) has cut its benchmark interest rate by 0.25% to a range of 4.25-4.50%. The decision was made after a two-day meeting. With this, US Federal Reserve Chair Jerome Powell and his team have lowered the federal funds rate third time in a row when.
Furthermore, the US policymakers had also revised their forecasts, projecting 2.5% headline inflation in 2025 in the country. They speculated inflation not returning to 2% until 2027, and expecting 2.5% growth in 2024 and 2.1% growth in 2025. This is the last interest rate decision under President Joe Biden’s administration before Donald Trump’s inauguration.
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