The Sensex dropped 1,176.46 points, or 1.49%, to close at 78,041.59. During the trading session, the index fluctuated within a range of 79,587.15 to 77,874.59. Similarly, the Nifty50 fell by 364.20 points, or 1.52%, to settle at 23,587.50, trading between 24,065.80 and 24,537.35.
The sell-off was broad-based, with 45 out of the 50 stocks on the Nifty50 ending in the red.Broader indices performed worse than the benchmarks, with the Nifty Midcap100 falling by 2.82% and the Nifty Smallcap100 dropping by 2.19%.
The India VIX, a measure of market volatility, rose by 3.87% to 15.07 points, signalling heightened uncertainty and investor caution.
Impact on the stock market
The bearish sentiment extended across all major sectoral indices. The worst-hit sectors included Nifty Realty, Nifty Select Telecom, and Nifty Financial Services, all of which fell by over 3%. Meanwhile, indices like Nifty IT, Nifty Auto, and Nifty PSU Bank also recorded declines of over 2%.
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| Sector/Index | Performance |
| IT & BPM sector | -2.63% |
| Healthcare sector | -0.82% |
| Oil & Gas sector | -1.65% |
| Real estate sector | -3.91% |
| PSU Bank in India | -2.65% |
Top gainers today
| Company | Price | Change % |
| Dr Reddys Labs Share Price | 1,342.00 | 1.24 |
| JSW Steel Share Price | 930.90 | 0.53 |
| ICICI Bank Share Price | 1,290.90 | 0.31 |
| HDFC Life Share Price | 624.80 | 0.20 |
Top losers today
| Company | Price | Change % |
| Tech Mahindra Share Price | 1,684.00 | -4.01 |
| Trent Share Price | 6,831.55 | -3.67 |
| IndusInd Bank Share Price | 929.45 | -3.62 |
| M&M Share Price | 2,906.35 | -3.59 |
| Axis Bank Share Price | 1,071.00 | -3.42 |
Market aftermath: Impact on stocks
Dr Reddy’s Labs: A safe haven for investors
Dr Reddy’s Labs emerged as the top gainer on the Nifty50, rising by 3% in today’s session. The stock extended its three-session rally, gaining a total of 9%. Analysts at Nomura recently upgraded the stock to a “buy,” highlighting the company’s increased capex for FY25 as a strong indicator of its long-term growth potential.
Trading volumes for Dr Reddy’s Labs were robust, with 46 lakh shares changing hands—double the one-month daily average of 23 lakh shares. The stock’s defensive nature attracted investor interest amid broader market volatility, making it a standout performer.
General Insurance Corporation: Hitting new highs
General Insurance Corporation of India (GIC) continued its stellar performance, surging by 11% to hit a record high of ₹494.45. Over the past month, GIC has risen by nearly 32%, driven by strong investor interest and heavy trading volumes.
On December 20, over one crore shares were traded, significantly surpassing the one-month daily average of 14 lakh shares. GIC’s performance highlights its appeal as a financial play in a turbulent market.
Brainbees Solutions: A modest gain amid market turmoil
Brainbees Solutions, the parent company of FirstCry, gained 3.1% in early trade. The stock benefited from JM Financial’s initiation of coverage with a “buy” rating and a target price of ₹692, suggesting a potential upside of 14%.
Despite today’s gains, Brainbees Solutions remains 8% lower over the past year, reflecting investor caution. By the end of the session, the stock traded at ₹624.90, showcasing resilience amid market volatility.
Also read: Brainbees shares gain 7% after FirstCry parent reports improved Q2
Crude oil prices dip amid Fed rate cut projections
Crude oil: Declines amid Federal Reserve rate projections
Crude oil futures experienced a decline following the US Federal Reserve’s projection of a slower pace of interest rate cuts in 2025. February Brent oil futures fell by 0.52% to $73.01, while January WTI crude dropped by 1.33% to $69.64. On the Multi Commodity Exchange (MCX), January crude oil futures traded at ₹5,942, marking a 0.78% drop from the previous close.
The decline in oil prices was offset slightly by a reduction in US commercial crude oil inventories. According to the US Energy Information Administration (EIA), inventories fell by 0.9 million barrels for the week ending December 13, leaving total inventories 6% below the five-year average for this time of year. However, the Federal Reserve’s cautious outlook on future rate cuts kept crude prices subdued.
Conclusion
The Indian stock market closed the week on a bearish note, with significant declines across most indices and sectors. Defensive stocks like Dr Reddy’s Labs and financial plays like GIC provided some relief, demonstrating resilience in a tough market environment.
As volatility persists, investors may turn to defensive sectors and selective midcap opportunities to navigate the uncertainty. Looking ahead, market participants will focus on global cues, sectoral performances, and commodity trends for direction in the coming days.
For more stock market insights, check out the StockGro blog.
