The BSE Sensex plunged 1,064.12 points or 1.30%, closing at 80,684.45, after trading between 81,613.64 and 80,612.20 during the session.
The NSE Nifty50 mirrored the sentiment, tumbling 332.25 points or 1.35% to settle at 24,336. The index moved within the range of 24,624.10 and 24,303.45 throughout the day.
The day belonged to the bears, as most sectoral indices and broader market stocks followed the downward trend. Only a handful of stocks managed to end in the green.
The correction impacted both benchmarks and broader markets significantly:
- Nifty Midcap100 and Nifty Smallcap100 indices ended lower by 0.57% and 0.68%, respectively.
- The India VIX, a measure of market volatility, spiked 3.31% to 14.49 points, reflecting investor nervousness.
Impact on the stock market
It was a sea of red for most sectoral indices:
- Banking indices (Nifty Bank, Financial Services) lost 1% each.
- Sectors such as Auto, Consumer Durables, and OMCs also declined by 1%.
- Nifty Media was the lone gainer, rising 0.02%.
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| Sector/Index | Performance |
| IT & BPM sector | -0.53% |
| Healthcare sector | -0.54% |
| Oil & Gas sector | -1.61% |
| Real estate sector | -0.09% |
| PSU Bank in India | -1.82% |
Top gainers today
| Company | Price | Change % |
| Cipla Share Price | 1,450.85 | +0.17 |
Top losers today
| Company | Price | Change % |
| Shriram Finance Share Price | 2,976.90 | -5.12 |
| Grasim Share Price | 2,599.70 | -3.18 |
| Bharti Airtel Share Price | 1,615.30 | -2.84 |
| Hero Motocorp Share Price | 4,415.10 | -2.73 |
| IndusInd Bank Share Price | 975.65 | -2.37 |
Market aftermath: Impact on stocks
Afcons Infrastructure shares surge 5%
While most stocks faced the heat, Afcons Infrastructure rallied 5% to hit a record high of ₹568.
- The surge came after Investec initiated coverage with a ‘buy’ call and set a price target of ₹630, projecting a 17% upside.
- Analysts see Afcons as a strong play on government infrastructure spending, citing its robust financials and diversified portfolio.
The stock has already rallied 17% in the past month, signalling strong investor confidence.
Also read: Afcons Infrastructure Sets Stage for ₹5430 Cr IPO
Oriana Power jumps 9% on signing a mega MoU
Shares of Oriana Power surged 9% after the company signed an MoU worth ₹10,000 crore with the Government of Rajasthan.
- The agreement, under the “Rising Rajasthan 2024” initiative, focuses on renewable energy projects like solar power, green hydrogen, and energy storage solutions.
- Interestingly, the MoU value is nearly double the company’s current market cap of ₹5,344 crore.
Over the past year, Oriana Power’s stock has delivered a stunning 428% return, showcasing its rapid growth in the renewable energy sector.
Gravita India jumps 7% on QIP launch
Gravita India, a lead and aluminium recycling firm, saw its shares rise 7% after launching a Qualified Institutional Placement (QIP) to raise funds up to ₹1,000 crore.
- The QIP floor price was set at ₹2,206.49 per share, with an indicative issue price of ₹2,096.2.
- The move will help the company address outstanding borrowings, meet working capital needs, and fund additional capex.
Over the past year, Gravita India’s stock has gained 116%, reflecting solid investor optimism.
Crude oil outlook: Pressure remains as Fed decision looms
Crude oil futures traded lower as global markets awaited the US Federal Reserve’s rate decision:
- Brent crude futures were down 0.28%, trading at $74.28 per barrel.
- WTI crude futures fell 1.04% to $70.55 per barrel.
In India, December crude futures on the MCX dropped to ₹6,023, down 0.31% from the previous close.
Key drivers impacting crude oil:
- US interest rate outlook: The market expects a 25 basis points rate cut, which could boost US economic growth and, in turn, demand for commodities like crude oil.
- China’s industrial production: Data showed a growth of 5.4% year-on-year in November, up from 5.3% in October. Improved manufacturing activity in China may stabilise crude oil demand globally.
Conclusion
The Indian stock market saw a sharp selloff on December 17, 2024, with both Sensex and Nifty 50 closing over 1% lower. The losses were triggered by a mix of global uncertainties, investor caution ahead of the US Fed meeting, and pressure from heavyweight stocks like Reliance and HDFC Bank.
However, a few bright spots emerged, with Afcons Infrastructure, Oriana Power, and Gravita India showing impressive gains. Meanwhile, crude oil futures remained under pressure as the market awaited clarity on US interest rate cuts.
For now, investors will be closely watching global cues and upcoming domestic events for the market’s next move.
For more stock market insights, check out the StockGro blog.
