#Nifty50, India's flagship stock market index is also called the ‘Stock of the Nation’. Launched in 1996, it represents the top 50 companies across dynamic sectors, capturing India's economic growth and market diversity. Watch the video to explore key interesting facts on NIFTY.… pic.twitter.com/dr3UgFqWvp
— NSE India (@NSEIndia) December 30, 2024
Indian shares declined on Monday, led by losses in banking stocks, as elevated U.S. Treasury yields raised concerns over foreign fund outflows. The benchmark indexes were in the red with the banking sector being the most significant drag. Investors are closely monitoring the impact of rising U.S. Treasury yields, which have surged to multi-year highs, prompting concerns about capital flight from emerging markets such as India.
The benchmark 10-year U.S. Treasury yield recently crossed 4%, its highest level in over a decade.
The usual monthly table of returns for major assets/asset classes which, this time around, covers the full year 2024.
Most delivered strong returns, with standout performances by Bitcoin (+120% after a 153% gain in 2023), US stocks (S&P 500 up 20% for the second consecutive… pic.twitter.com/XHb5pAzmBq— Mohamed A. El-Erian (@elerianm) December 31, 2024
“The high U.S. yields are making investors nervous, leading to outflows from riskier assets like Indian equities,” said market analyst Rohan Mehta. In Mumbai trading, major banking stocks such as HDFC Bank and ICICI Bank reported notable declines.
Bank Nifty, a sectoral index representing the top banking stocks, dropped significantly, affecting the overall market sentiment.
With US stock futures currently down 1-1.5% in what has been a notably weak December, a major question facing investors is whether
Recent selling is simply profit taking/portfolio rebalancing in an illiquid market after a strong 2024 as a whole (e.g., S&P up 25% and the Nasdaq… pic.twitter.com/Xj6WTwE1z2— Mohamed A. El-Erian (@elerianm) December 30, 2024
Banks weigh on market decline
The broader NSE Nifty 50 index was down 1.4%, while the S&P BSE Sensex fell by 1.2%.
On the last trading day of 2024, the Indian stock market ended on a mixed note. The Sensex closed 110 points lower, while the Nifty ended just above the 23,650 mark.
Maruti Suzuki Share Price: Shares surge on 30% wholesales boost in December 2024 – BUY, SELL, or HOLD?https://t.co/UPcfZ0ycIF
— ET NOW (@ETNOWlive) January 1, 2025
Throughout the year, the Nifty saw a nearly 9 percent increase, with the Sensex close behind at an 8 percent gain.
The broader market, particularly small and midcap stocks, outperformed, with indices like the Nifty Smallcap 100 and Nifty Midcap 100 surging over 20 percent each. Despite facing minor losses on the final trading day of the year, the Indian stock market showed signs of recovery from early weaknesses in the session. As 2025 approaches, market participants are advised to stay focused on stock selection, exercise caution due to elevated volatility, and keep an eye on significant resistance and support levels to navigate the market effectively.
