On December 20, Dalal Street witnessed a bearish grip as the Sensex plummeted by 1,611 points from its record high of 71,913, and the NSE Nifty 50 slid 506 points from its all-time high of 21,593.
Market analysts deem this correction as’ long overdue,’ anticipating the Nifty will test 21,000 levels in the coming days. The analysts pointed out that the selloff was justified because of concerns over valuations.
The rupee ended flat at 83.18 against the US dollar amid equity market sell-off, foreign fund outflows, and Red Sea oil supply concerns.
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Impact on the stock market
All the sectoral indices ended in the red. Auto, capital goods, metal, pharma, oil & gas, power, and realty were down 1-4%.
Although the Nifty IT index dipped initially, it turned positive after Accenture’s Q2 revenue guidance, which, though muted, influenced its trajectory.
| Sector/Index | Performance |
| Information Technology | – 1.71% |
| Healthcare | – 1.78% |
| Oil & Gas | – 1.89% |
| Realty | – 2.43% |
| PSU Banks | – 4.04% |
Top gainers today
| Company | Price | Change (%age) |
| ONGC | 203.20 | 1.45% |
| TATA Cons. Prod | 976.30 | 1.05% |
| Britannia | 4,954.95 | 0.89% |
| HDFC Bank | 1,657.00 | 0.25% |
Top losers today
| Company | Price | Change (%age) |
| Tata Steel | 129.70 | -4.21% |
| NTPC | 298.05 | -3.79% |
| Tata Motors | 704.95 | -3.33% |
| HCL Tech | 1,439.90 | -3.24% |
| M&M | 1,648.25 | -3.04% |
Market aftermath: Impact on stocks
Varun beverages hit new heights
Varun Beverages witnessed a remarkable 17.78% surge in share price, reaching a 52-week high of ₹1,380.45 after announcing the acquisition of South Africa’s Bevco. The deal, valued at ZAR 3 billion (₹1,320 crores), positions Varun Beverages as a major player in the African market, adding 10 nations to its portfolio.
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The company’s market capitalisation surpassed ₹1.68 lakh crore, outshining Tata Steel. Year-to-date, its shares have surged by over 95%, reflecting robust investor confidence in the company’s expansion initiatives.
ITC Infotech expands global footprint
ITC Infotech India Limited, a wholly-owned subsidiary of ITC Limited, has expanded its global presence by incorporating a new subsidiary, ITC Infotech Arabia Limited (‘ITC Arabia’). ITC Arabia has become a wholly-owned subsidiary of ITC Limited to cater to the growing demand for IT services and solutions in the Middle East.
As of the incorporation date, ITC Infotech India holds 100% of ITC Arabia’s share capital. In the September quarter, ITC Limited reported a standalone net profit of Rs 4,926.96 crore, marking a 10.32 % increase from the year-ago period, with a revenue of Rs 16,550 crore and EBITDA of Rs 6,041.5 crore.
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Mutual Funds SIP surge:
Mutual funds witnessed a substantial surge in systematic investment plan (SIP) inflows, reaching an unprecedented ₹17,073 crore in November 2023.
Notably, this marked a new record for the fifth consecutive month, following a robust bull run in the financial markets. The cumulative SIP contribution in the first 11 months of 2023 stood at ₹1,66,131 crore, reflecting a remarkable 22.23% increase compared to last year.
Conclusion
In today’s market, Dalal Street experienced a significant downturn, with Sensex and Nifty witnessing substantial declines.
Analysts anticipate a correction, emphasising a ‘risk-off on equities’ stance. Varun Beverages and ITC Infotech made notable moves, with Varun’s acquisition propelling shares to a 52-week high, while ITC expanded its global footprint. Overall, the market remains dynamic, responding to various global and domestic factors.
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