The BSE Sensex plummeted by 964.15 points (1.20%) to close at 79,218.05, trading in a range of 79,516.17 to 79,020.08. Similarly, the NSE Nifty50 fell 247.15 points (1.02%), ending the session at 23,951.70, after oscillating between 24,004.90 and 23,870.30.
The sell-off mirrored global cues, influenced by US Federal Reserve Chairman Jerome Powell’s hawkish comments, which dampened investor sentiment. The broader market also felt the heat, with Nifty Midcap100 and Nifty Smallcap100 indices slipping 0.28% and 0.51%, respectively.
The India VIX, a measure of market volatility, edged up by 0.95% to 14.51 points, indicating rising uncertainty.
Impact on the stock market
Sectoral performance:
Barring Pharma and Healthcare, all sectoral indices ended in the red.
- Banking indices, including Bank Nifty, PSU Bank, and Private Bank, declined by 1% each.
- IT, Financial Services, Consumer Durables, and Metal indices mirrored the broader market’s losses.
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| Sector/Index | Performance |
| IT & BPM sector | -1.26% |
| Healthcare sector | +1.26% |
| Oil & Gas sector | -0.36% |
| Real estate sector | -0.82% |
| PSU Bank in India | -0.59% |
Top gainers today
| Company | Price | Change % |
| Dr Reddys Labs Share Price | 1,325.60 | +3.94 |
| Cipla Share Price | 1,506.55 | +2.32 |
| BPCL Share Price | 294.55 | +2.17 |
| Sun Pharma Share Price | 1,823.30 | +1.24 |
| Apollo Hospital Share Price | 7,297.55 | +0.83 |
Top losers today
| Company | Price | Change % |
| Bajaj Finserv Share Price | 1,589.55 | -2.53 |
| Asian Paints Share Price | 2,291.85 | -2.29 |
| JSW Steel Share Price | 925.95 | -2.21 |
| Bajaj Finance Share Price | 6,918.55 | -2.20 |
| Grasim Share Price | 2,539.05 | -2.12 |
Market aftermath: Impact on stocks
Pharma stocks buck the trend
Pharma stocks shone amidst the market gloom, with the Nifty Pharma index rising over 1% to become the day’s sole sectoral gainer.
Leading the pack was Dr Reddy’s, which jumped nearly 4%, driven by Nomura’s upgrade to a ‘buy’ rating. The brokerage highlighted the company’s growth potential in India and its low-competition injectable launches in the US. Shares of Cipla, Lupin, and Sun Pharma also rose by 1-4%, supported by strong investor sentiment.
Other notable performers included Laurus Labs, JB Pharma, Ipca Labs, and Natco Pharma, which gained 1-5%, reflecting broad-based optimism in the sector.
Stove Kraft trims early gains despite IKEA partnership
Stove Kraft witnessed a surge of nearly 6% in early trade following its announcement of a partnership with IKEA. The deal involves manufacturing cookware to be sold through IKEA’s global network from 2026.
Despite the promising development, profit-booking trimmed gains, and the stock ended marginally lower at ₹894.7 on the NSE. The manufacturing facility for this partnership is being set up at Harohalli, spread across 180,000 square feet.
SpiceJet gains on dispute settlement
Shares of SpiceJet rallied nearly 7% after the airline announced a settlement of a $16 million dispute with leasing firm Genesis.
As part of the agreement:
- SpiceJet will pay $6 million in cash.
- Genesis will acquire $4 million worth of equity in SpiceJet at ₹100 per share.
The stock has gained around 9% over the past month, buoyed by a series of recent dispute settlements with other lessors, including Aircastle and Shannon Engine Support.
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Crude oil prices dip amid Fed rate cut projections
Global crude oil prices declined on Thursday, reflecting the US Federal Reserve’s forecast of a slower pace of interest rate cuts in 2025.
Key figures:
- February Brent crude oil futures: Down 0.52% to $73.01.
- January WTI crude oil futures: Down 1.33% to $69.64.
- On MCX, January crude oil futures fell 0.78% to ₹5942.
The decline in crude prices comes despite the US Energy Information Administration (EIA) reporting a drop of 0.9 million barrels in commercial crude oil inventories for the week ending December 13. Gasoline inventories, however, rose by 2.3 million barrels, dampening demand sentiment.
Reduction in interest rates generally makes dollar-denominated commodities like crude oil more affordable, boosting demand. However, the Fed’s slower rate-cut trajectory has raised concerns about crude demand dynamics.
Conclusion
The Indian stock market faced a turbulent session on December 19, with global cues and the Fed’s hawkish stance weighing heavily on investor sentiment. While most sectors faltered, pharma stocks stood resilient, buoyed by positive developments.
With market volatility on the rise and global economic uncertainties persisting, traders and investors must tread cautiously in the coming sessions. Stay tuned for further updates and insights into the financial markets.For more stock market insights, check out the StockGro blog.
