Closing Bell | Fall intensifies, Sensex tanks 1,177 points, Nifty below 23,600; realty index down 4%

Indian equity indices ended on weak note with Nifty below 23,600 on December 20 amid selling across the sectors. At close, the Sensex was down 1,176.46 points or 1.49 percent at 78,041.59, and the Nifty was down 364.2 points or 1.52 percent at 23,587.50.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Disappointment regarding the slower-than-anticipated rate cuts by the US Fed has adversely affected global market sentiment. This bearish outlook is particularly impacting the domestic market, which is already contending with high valuations & low earnings growth.

The sell-off has been widespread, with significant declines in mid- and small-cap stocks, where valuations premiumisation is at historical peak. The IT sector is notably underperforming as it was amongst the best performers in anticipation of rapid rate cuts in 2025.

Markets experienced a sharp decline on Friday, shedding nearly one and a half percent as the corrective phase persisted. After a choppy start, the Nifty index steadily weakened throughout the day, breaching the critical support of its long-term moving average, the 200 DEMA. Selling pressure was evident across sectors, with realty, IT, and auto taking the hardest hits. Broader indices were also significantly impacted, registering losses between 2.2% and 3%.

As anticipated, declines in IT and banking heavyweights are adding to the market pressure, signaling potential challenges ahead. The November low around the 23,250 zone now emerges as the next key support, while the 23,850-24,000 range serves as a resistance zone for any recovery attempts. Traders should adjust their positions accordingly, maintaining a strong focus on risk management.

Nervousness continued to grip investors and stocks across-the-board went into a tailspin as the dollar's continuing strength against the rupee has been prompting foreign investors to flee local equities and take shelter in safe haven dollar assets.

Investors are also apprehensive about Trump's trade policies when he takes charge in mid January next year, as his aggressive policies could further roil global markets.

#1 Market records biggest weekly fall in more than 2 years

#2 Nifty & Sensex fall over 4 percent each, biggest fall since June 2022

#3 Nifty Bank slides 5 percent & Midcap index nearly 4 percent this week

#4 BSE-listed cos erase market cap of Rs 19 lakh crore this week

#5 Expect pharma, all sectoral indices post losses this week

#6 PSU Bank, PSU, Metal top losing indices, down 6 percent each

Indian rupee ended higher at 85.02 per dollar on Friday versus Thursday's close of 85.07.

Indian equity indices ended on weak note with Nifty below 23,600 on December 20 amid selling across the sectors.

At close, the Sensex was down 1,176.46 points or 1.49 percent at 78,041.59, and the Nifty was down 364.2 points or 1.52 percent at 23,587.50. About 963 shares advanced, 2859 shares declined, and 95 shares unchanged.

Biggest Nifty losers included Trent, Tech Mahindra, M&M, IndusInd Bank, Axis Bank, while gainers are Dr Reddy's Labs, Nestle India, HDFC Life, ICICI Bank.

All the sectoral indices ended in the red with realty index shed 4 percent, auto, IT, capital goods, metal, telecom, PSU bank down 2 percent each.

The BSE midcap and smallcap indices shed over 2 percent each.

QIB – 0.03 times

NII - 8.71 times

Retail – 7.73 times

Employee Reserved - 11.26 times

Overall – 5.76 times

#1 Riding India's data center localisation wave

#2 RE business to grow steadily, while DC & cloud will be in limelight

#3 Growth levers at play: strong pre-sales, collections, & operational cash flows underpin growth

#4 Expect significant revenue and EBITDA margin expansion, driving long-term value creation

#5 Expect revenue to clock 26.5 percent/23.3 percent/33.3 percent YoY growth over FY25/FY26/FY27

#6 EBITDA margin is anticipated to improve with 46.9 percent/50.8 percent/50.6 percent from 22.5 percent in FY24

Indian Rupee hit a record low of 85.10 earlier in the day. However, Rupee recovered from lower levels in the latter half of the day on softening of the US Dollar index and a potential intervention by the Reserve Bank of India (RBI). A decline in crude oil prices also supported the Rupee at lower levels. US Dollar gained on Thursday as US economy expanded 3.1% in Q3 2024 vs initial estimates of 2.8%.

We expect Rupee to trade with a negative bias on weak domestic markets and overall strength in the US Dollar amid a hawkish Fed and improved US economy. FII outflows may also weigh on the Rupee. However, any further correction in crude oil prices may support the Rupee at lower levels.

Any intervention by the RBI may also support the Rupee. Traders may take cues from core PCE price index, personal spending and revised consumer sentiment data from the US. USDINR spot price is expected to trade in a range of Rs 84.80 to Rs 85.15.

#1 Company is a leading US-healthcare-focused BPM firm with deep domain expertise

#2 Over FY25-27, expect company to deliver 12 percent/40 percent CAGR in revenue/profit

#3 Superior earnings growth outlook is likely to sustain current PE multiples

#1 Praveg: Mahindra Holidays inventory agreement for 70 rooms

QIB – 0.02 times

NII - 7.31 times

Retail – 6.95 times

Employee Reserved - 10.30 times

Overall – 5.06 times

GAIL Board at its meeting held on 20.12.2024 has accorded approval for formation of Wholly Owned Subsidiary of GAIL to operate as a Finance Company in International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (Gift City), Gujarat for undertaking Ship Leasing activities and/or Global/Regional Corporate Treasury Centres activities or any other permissible activities under the regulatory frameworks.

#1 Q3FY25 may still not be particularly exhilarating, but Q4FY25 continues to look promising

#2 Pervasive theme of China+1 has structural merit despite episodes of weakness

#3 Expect company’s specialty chemicals to expand at a 20–25 percent CAGR over five years

#4 Trim FY25/26 EBITDA (By 2 percent/3 percent) to reflect gradual improvements in chemicals business

The Board has approved the re-appointment of Unsoo Kim as Managing Director of the company for three years, effective January 25, 2025.

Shriram Green Finance, consolidates the green finance business with a vision to build a robust green finance portfolio through financing EVs, battery charging stations, renewable energy products and solutions, energy efficient machinery, etc.

By leveraging its extensive customer base, particularly in semi-urban and rural areas, Shriram Finance has the potential to play a transformative role in green financing.

The company has set a target to achieve an Asset Under Management (AUM) of Rs 5,000 crores for this vertical over the next 3–4 years.

The company has entered into a finance agreement with the United States International Development Finance Corporation, a US government development finance institution, for availing a loan facility of up to USD 18 million.

At a global level two major shifts have been geopolitical trends and diversification of supply chain because of China plus one.

Elections and monetary policy led to the slowdown in Q2 earnings. Because of election, the government didn't spend. The budget of capex is negative in the first seven months of FY25.

There are currently three levers for growth: young demographics, major reforms like GST, infra reforms Etc. stable macros and structural drivers will help push India's growth.

Wanbury's Tanuku plant at Andhra Pradesh successfully completed ANVISA inspection (Brazil Health Regulatory Agency) started from 16.12.2024 to 19.12.2024 (4 days) for its API manufacturing facility.

Inspection completed with zero observations which means no observation during the inspection process for 5 APis confirming strict adherence of cGMP practices at its state-of-the art API manufacturing facility.

The Reserve Bank of India (RBI) has approved the re-appointment of Harun Rashid Khan as the Part-time Chairman of AU Small Finance Bank for three years, effective December 28, 2024.

Shares of BASF India were higher by over 5% in early trade on December 20 on very high volumes, after the board approved the demerger of its agricultural solutions business into a separate listed entity.

The move is in line with German parent BASF SE's decision to separate the agricultural solution business by 2027. BASF SE is also preparing for a potential Initial Public Offering (IPO) of its global agricultural solutions business, and also evaluating the option of listing a 'minority share' in the mid-term, the Indian entity said. BASF India said it would assess the implications of the new strategy for its India business.

BASF India's statement said it has "accorded its in-principle approval for demerger of Company’s Agricultural Solutions business into a separate listed legal entity. This will enable operational flexibility, leverage differentiated steering and create value." Read More

Shares of the newly-listed Inventurus Knowledge Solutions rose over 6% on December 20 a day after Norway-based Norges Bank bought over 34 lakh shares worth Rs 652 crore.

On December 20, the stock rose over 6% to trade at Rs 2,148 before paring its gains to trade 2% higher at Rs 2,004. The IPO free float was 1.03 crore shares and nearly 33% shares were cornered by the single entity.

On account of the Government Pension Fund Global, Norges Bank executed two bulk deals. They purchased 16.59 lakh shares at Rs 1,923.92 apiece and 17.5 lakh shares at Rs 1,899.67 apiece.

The company wins Letter of Award for Imparting services of Passive Seismic Tomography (PST) from Oil India aggregate value of ~ Rs. 60 crore.

The Sensex was down 39.42 points or 0.05 percent at 79,178.63, and the Nifty was down 9.15 points or 0.04 percent at 23,960.85. About 1626 shares advanced, 1657 shares declined, and 114 shares unchanged.

Asian equities declined as investors awaited the release of the Federal Reserve’s preferred inflation gauge for fresh clues about its policy outlook

The company launches vehicle paint protection film with lifetime warranty