Sensex loses over 1500 from day’s excessive, Nifty cracks 360 factors – Firstpost
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This week’s market droop eroded Rs 18.5 lakh crore ($223 billion) in investor wealth. The downturn has been attributed to danger aversion within the world markets after the hawkish stance of the US Federal Reserve
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Indian fairness benchmark indices Sensex and Nifty prolonged their shedding streak to a fifth consecutive session on Friday (December 20), closing with sharp declines of about 1.5 per cent amid world danger aversion and home issues over excessive valuations and low earnings progress.
Bears maul Sensex, Nifty
The 30-share BSE Sensex plummeted 1,176.46 factors, or 1.49 per cent, to shut at 78,041.59. The index fell as a lot as 1,343.46 factors, or 1.69 per cent, to an intraday low of 77,874.59.
The broader NSE Nifty dropped 364.20 factors, or 1.52%, to settle at 23,587.50.
This week’s market droop eroded Rs 18.5 lakh crore ($223 billion) in investor wealth, in accordance with CNBC-TV18.
Amongst Sensex constituents, Tech Mahindra, IndusInd Financial institution, Axis Financial institution, Mahindra & Mahindra, Tata Motors, Larsen & Toubro, State Financial institution of India, Tata Consultancy Companies, UltraTech Cement, and Reliance Industries noticed vital losses. However, JSW Metal, Nestle, and Titan managed to submit positive aspects.
What brought about the inventory market crash?
The downturn has been attributed to danger aversion within the world markets after the hawkish stance of the US Federal Reserve.
Though the Fed determined to maintain charges decrease, its projections indicated fewer fee cuts going ahead
“Disappointment relating to the slower-than-anticipated fee cuts by the US Fed has adversely affected world market sentiment,” mentioned Vinod Nair, Head of Analysis at Geojit Monetary Companies.
The worldwide developments solely added to the subdued sentiment in India, the place the markets are grappling with excessive valuations and low earnings progress.
“This bearish outlook is especially impacting the home market, which is already contending with excessive valuations & low earnings progress. The sell-off has been widespread, with vital declines in mid- and small-cap shares, the place valuations premiumisation is at historic peak. The IT sector is notably underperforming because it was amongst one of the best performers in anticipation of speedy fee cuts in 2025,” Nair mentioned.
With inputs from companies
