Equity indices ended marginally lower on December 18, with Nifty around 21,400. The Sensex closed down 168.66 points or 0.24% at 71,315.09, while the Nifty was down 38 points or 0.18% at 21,418.70.
The market, influenced by mixed global cues, initially traded flat but succumbed to bearish sentiment in the second half.
The rupee closed 2 paise lower at 83.05 against the US dollar. Despite early gains, the rupee gave up its positive momentum due to a dull performance in the domestic equity market.
However, the Indian rupee received some support from foreign investors’ continued buying and a weaker US dollar, which helped to offset the negative impact of the lackluster domestic equity market.
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Impact on the stock market
In sectoral indices, Nifty Bank, Nifty Realty, Nifty PSU, Nifty Financial Services, Nifty FMCG, and Nifty IT closed lower, with declines ranging from 0.3% to 1%.
Conversely, Nifty Media, Nifty Pharma, Nifty Metal, Nifty Oil & Gas, and Nifty Auto experienced gains, ranging from 0.05% to 1.18%.
| Sector/Index | Performance |
| Information Technology | – 0.27% |
| Healthcare | + 0.61% |
| Oil & Gas | + 0.05% |
| Realty | – 0.96% |
| PSU Banks | – 0.73% |
Top gainers today
| Company | Price | Change (%age) |
| Bajaj Auto | 6,465.70 | + 3.04% |
| Hindalco | 566.40 | + 1.64% |
| Adani Ports | 1,094.30 | + 1.46% |
| Sun Pharma | 1,252.75 | + 1.38% |
| Reliance | 2,521.00 | + 1.02% |
Top losers today
| Company | Price | Change (%age) |
| Power Grid Corp | 231.85 | – 2.32% |
| ICICI Bank | 1,021.45 | – 1.54% |
| ITC | 451.65 | – 1.43% |
| JSW Steel | 854.90 | – 1.42% |
| Tech Mahindra | 1,291.75 | – 1.10% |
Market aftermath: Impact on stocks
Record surge: Foreign investors inject over $5 billion in Indian equities in just 15 days
Foreign portfolio investors (FPIs) displayed unprecedented enthusiasm in the Indian equities market, recording over $5.15 billion in purchases during the first half of December, a historic fortnightly high, according to National Securities Depository data.
The surge is attributed to lower U.S. bond yields, anticipation of Federal Reserve interest rate cuts, the Reserve Bank of India’s upgraded growth forecast, and favourable state election results ensuring policy continuity in 2024. If the trend continues, FPI inflows in December might exceed those of July 2023, nearly matching the total for that month.
Vedanta’s fiscal momentum:
Vedanta Limited greenlights a second interim dividend of Rs 11 per share for FY24, totalling Rs 4,089 crore. The announcement follows Vedanta’s 1.4% stock rise to Rs 260 per share on December 18, outperforming the Sensex.
With 41 dividends declared since July 2001, the past year alone saw an equity dividend of Rs 51.50 per share. Vedanta, a major player in natural resources, experienced a 10% surge in its shares in the last three months, surpassing the Sensex’s 5% rise.
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Russian export cuts propel crude oil futures higher
Crude oil futures exhibited an upward trajectory on Monday as Russia opted to intensify its monthly oil export cuts. The market witnessed increased concerns about crude oil supplies following attacks on merchant ships in the Red Sea region.
At market opening, February Brent oil futures rose to $76.88, marking a 0.43% increase, while February crude oil futures on WTI reached $72.11, up by 0.46%. On the Multi Commodity Exchange (MCX), December crude oil futures were traded at ₹5948, showing a marginal 0.07% decline, and January futures were at ₹6015, up by 0.08% from the previous close.
Conclusion
In summary, the Indian stock market witnessed a minor dip, with Nifty around 21,400, influenced by mixed global cues. The rupee closed slightly lower against the US dollar.
Meanwhile, foreign investors injected over $5 billion in just 15 days, setting a historic record. Vedanta approved an interim dividend, surging 10% in the last three months, and crude oil futures rose due to Russian export cuts, heightening supply concerns.
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