Indian equities wrapped up their worst week of 2024, with the Sensex and Nifty50 tumbling nearly 5% amid a global sell-off triggered by hawkish comments from the US Federal Reserve.
| Company | Value | Change | %Change |
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The Sensex sank 1,176.46 points or 1.49% on Friday to close at 78,041.59, while the Nifty50 shed 364.20 points or 1.52% to settle at 23,587.50. Over the week, investor wealth eroded by a staggering ₹18.5 lakh crore.
As markets reopen on Monday, both domestic and global cues will shape sentiment.
GST Council outcome
Insurance stocks are expected to remain in focus after the GST Council deferred its decision to reduce GST rates on life and health insurance premiums by 18%. Meanwhile, the council raised the tax rate on all used cars, including EVs, from 12% to 18%, though sales between individuals remain exempt. Auto stocks are likely to react to this move.
Additionally, fortified rice kernel stocks may gain attention as the GST rate was slashed to 5% from 18%, while liquor and tobacco stocks, including ITC, could remain volatile as the council postponed decisions on a ‘sin tax.’
Holidays
Global market closures for Christmas will make it a holiday-shortened week. Major global markets, including the US, UK, and Australia, will close early on Tuesday, 24 December, and remain shut on Wednesday, 25 December. Markets in Australia, Germany, and France will also close on Thursday for Boxing Day.
Sensex reshuffle
Zomato will grab the spotlight on Monday as it becomes the first new-age tech company to join the 30-member BSE Sensex, replacing JSW Steel in the index reshuffle effective December 23.
The rejig is expected to drive inflows of $513 million into Zomato, while JSW Steel could see outflows of $252 million. Stocks like Mahindra & Mahindra, ITC, Infosys, and Sun Pharmaceuticals may see changes in their weights within the index.
FII/DII action
On Friday, Foreign Institutional Investors (FIIs) were net sellers at ₹3,597.82 crore, while Domestic Institutional Investors (DIIs) were net buyers at ₹1,374.37 crore. Interestingly, FPIs recorded net inflows of ₹21,789 crore in December, reversing months of heavy outflows.
Primary market buzz
Unimech Aerospace’s ₹745–785 per share IPO launches on Monday. Additionally, SME IPOs such as Solar91 Cleantech and Anya Polytech are set to open later in the week. Meanwhile, eight recently subscribed IPOs, including Ventive Hospitality and Carraro India, are expected to list next week.
Forex and oil trends
The rupee recovered 9 paise on Friday, closing at ₹85.04 against the US dollar. Despite this, the rupee remains under pressure due to elevated dollar demand and a strong US economy. The Dollar Index (DXY) will likely stay strong, with resistance at 110.
Oil prices remain a critical factor for inflation and global monetary policy. Brent crude ended at $72.94, up 0.14%, while WTI stood at $69.58, up 0.29%. Rising crude prices could weigh on market sentiment, stoking inflation fears.
Corporate action
Stocks like Vedanta, NMDC, and Mazagon Dock Shipbuilders could see activity ahead of their record dates for corporate actions such as dividends, bonuses, and stock splits.
