Stock Market Plummets, Sensex Drops Over 1,000 Points
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Mumbai, Dec 17 (NationPress) The Indian stock market experienced a significant downturn during midday trading on Tuesday as benchmark indices Sensex and Nifty dropped by more than 1 percent.
This downturn in the domestic market was observed as investors remained cautious in anticipation of the US Federal Reserve meeting scheduled for December 18.
Additionally, the underwhelming performance of major stocks also contributed to the decline of the market indices.
At 1:23 p.m., the Sensex was trading at 80,747.04, experiencing a decline of 1,001.53 points, or 1.23 percent, while the Nifty stood at 24,364.70, down by 303.55 points, or 1.23 percent.
Market analysts noted that globally, investors are keenly awaiting the FOMC outcome on Wednesday. The markets have already factored in a 25 basis point rate cut, thus attention will be directed towards the Federal Reserve chairman’s statements. Any deviation from a dovish tone could negatively impact the market, they asserted.
"This is only a remote possibility. The robust US services PMI at 58.5 percent suggests a resilient economy, which bodes well for the market," they further explained.
Within the Sensex constituents, Bharti Airtel, TCS, L&T, Power Grid, Bajaj Finserv, Reliance, and JSW Steel were among the leading losers. Conversely, ITC, Adani Ports, Tata Motors, and Hindustan Unilever Ltd emerged as the top gainers.
Despite the drop in the primary indices, midcap and smallcap stocks performed slightly better.
The Nifty Bank index fell by 604.45 points, or 1.13 percent, settling at 52,976.90. The Nifty Midcap 100 index rose by 82.30 points, or 0.14 percent, to reach 59,360.75, while the Nifty Smallcap 100 index decreased by 20.20 points, or 0.10 percent, to 19,510.85.
According to Akshay Chinchalkar of Axis Securities, "The Nifty has retraced some of the previous Friday's short squeeze, forming a 'bearish harami' pattern. This indicates that the next tactical move will depend on whether yesterday's high or low is breached first."
