The Indian stock markets experienced a significant downturn on Thursday, December 19, 2024, influenced by global economic signals and domestic factors.
Market Performance Indian Stock Market
- Indices Decline: The NSE Nifty 50 fell by 1% to 23,956 points, and the BSE Sensex dropped 1.1% to 79,331. Market Performance Indian Stock Market
- Sectoral Impact: IT and metal stocks led the decline, affected by a stronger U.S. dollar and concerns over potential foreign investment outflows.
Contributing Factors:
- Federal Reserve’s Stance: The U.S. Federal Reserve’s recent decision to cut interest rates by 25 basis points, coupled with projections of only two rate reductions in 2025, has dampened investor risk appetite globally. Indian Stock Market
- Foreign Investment Concerns: There is apprehension about foreign outflows
- from Indian equities, with foreign investors selling $941.2 million worth of Indian stocks this week.
- Rupee Depreciation: The Indian rupee weakened to a record low of
- 84.9550 against the U.S. dollar, influenced by strong dollar demand from importers and potential equity outflows.
Regulatory Developments:
- SEBI’s New Rules: The Securities and Exchange Board of India (SEBI) has introduced stricter regulations for IPOs of small and medium-sized enterprises (SMEs) and for merchant bankers, aiming to ensure that only financially sound SMEs enter the IPO market and to enhance regulatory standards. Indian Stock Market
Global Context:
- IPO Landscape: In 2024, while the U.S. led in funds raised through IPOs, India conducted the highest number of IPOs globally, hosting 327 and raising $19.9 billion, influenced by geopolitical tensions. MarketWatch Indian Stock Market
Investors are advised to monitor these developments closely, as global economic policies and domestic regulatory changes continue to influence market dynamics.
Key Developments in Indian Stock Markets
Indian shares tumble after Fed signals fewer rate cuts next year
TodayReutersIndia’s market regulator tightens rules for IPOs of small firmsTodayReutersRupee weakens to lifetime low hurt by merchant dollar bids, weak equities
Indian Share Market: An Overview
The Indian share market is one of the largest and most dynamic markets globally, comprising two major exchanges:
- Bombay Stock Exchange (BSE): Established in 1875, BSE is Asia’s oldest stock exchange.
- National Stock Exchange (NSE): Founded in 1992, NSE introduced electronic trading to India.
These exchanges list thousands of companies across diverse sectors, reflecting the economy’s growth and resilience. Indian Stock Market
