Indian Stock Market Declines on Last Day of 2024
The Indian stock market experienced a downturn on the final day of 2024. The Sensex fell by 109 points, closing at 78,139.01, while the Nifty closed at 23,644.80. Foreign investor selling and rising US Treasury yields were cited as contributing factors.
Closing Bell: The key Indian stock market indices, Sensex and Nifty, closed lower on Tuesday (December 31, 2024). A weak trend in Asian markets and a decline in IT stocks put pressure on Indian markets. The increase in US Treasury yields negatively impacted emerging markets, prompting foreign investors to pull money out of these markets.
2024 Performance of Sensex and Nifty
At the end of 2024, the Sensex and Nifty delivered a return of 8.4% to investors. However, this return was considerably lower than the approximately 20% return seen in 2023. The market was impacted by softer quarterly results from corporate companies and foreign selling pressure.
Decline in BSE Sensex and NSE Nifty
The BSE Sensex opened with a decline of over 250 points and slipped as low as 1100 points during the day. However, it ultimately closed down 109.12 points, or 0.14%, at 78,139.01. Meanwhile, the NSE Nifty decreased by 0.10 points, closing at 23,644.80.
Decline in IT Stocks and Asian Markets
Selling pressure in IT stocks and declines in Asian markets contributed to the downturn in Indian markets. Experts attribute this to rising US Treasury yields and a strengthening US dollar, which prompted foreign investors to shift capital from emerging markets like India to the US, putting pressure on domestic markets.
Top Losers and Gainers
Among the Sensex-listed companies, prominent decliners included Tata Consultancy Services, Zomato, Tech Mahindra, Infosys, ICICI Bank, Bajaj Finance, Hindustan Unilever, and HCL Technologies. Conversely, stocks like Kotak Mahindra Bank, ITC, UltraTech Cement, and Tata Motors closed in the green.
Adani Wilmar Stock Declines
Adani Wilmar's stock fell as much as 8% intra-day on Tuesday. It ultimately closed down 6.45% or ₹21.25, at ₹308.25 per share. This decline was attributed to news that Gautam Adani is planning to sell his entire 44% stake in the company.
Continued Selling Pressure by Foreign Investors
Foreign institutional investors (FIIs) sold ₹1,893.16 crore worth of equity shares on Monday, continuing as net sellers for the 10th consecutive trading session. In contrast, domestic investors remained net buyers for the 9th consecutive session.
Conclusion of 2024
The Indian stock market closed the year on a down note, despite the Sensex and Nifty delivering an 8.4% return in 2024. While this return was lower compared to 2023, the Indian stock market provided some gains to investors, despite market conditions and a global economic backdrop.
