Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Friday. While BSE Sensex was around 80,100, Nifty50 was near 24,200. At 10:47 AM, BSE Sensex was trading at 80,124.99, down 1,165 points or 1.43%. Nifty50 was at 24,202.50, down 346 points or 1.41%.
Indian equity indices Sensex and Nifty experienced a significant decline on Friday, dropping more than 1%, primarily affected by metal stocks due to a robust U.S. dollar and uncertainty regarding stimulus measures from China. The inflation figures for November also negatively influenced market sentiment.
The total market value of BSE-listed companies decreased by Rs 6.5 lakh crore to Rs 451.65 lakh crore following this decline, according to an ET report.
Nifty Metal stocks saw a decline of up to 5% as market participants evaluated China’s economic revival plans. The Chinese economic performance significantly influences global metal demand and prices.
Rate-sensitive sectors, including Nifty Bank, Auto, Financial Services, PSU Bank, and Realty, recorded declines between 1.5% and 2.7%. The India VIX increased by 9.9% to 14.5.
November’s retail inflation in India decreased to 5.48%, falling within the RBI’s tolerance band after exceeding 6% in October, attributed to the availability of fresh produce moderating vegetable prices.
In the immediate future, the market faces opposing forces. FIIs have sold stocks worth Rs 3,560 crores recently, and given India’s high valuations, they are expected to continue selling when markets rise. FIIs find selling profitable due to post-US election dollar appreciation. However, falling inflation could provide market support,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The strengthening dollar raises concerns about imported inflation. Nifty is expected to remain within 24,500 – 24,850. The lower end will attract buyers whilst the upper end will trigger selling,” Vijayakumar continued.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “After a negative opening, Nifty can find support at 24,400 followed by 24,300 and 24,200. On the higher side, 24,700 can be an immediate resistance, followed by 24,850 and 24,950.”
Asian shares declined on Friday as dollar strength affected risk appetite, while extended Treasury yields are set for their largest weekly increase this year as prospects of significant US rate reductions in 2025 diminish.
MSCI’s broadest index of Asia-Pacific shares outside Japan decreased 0.5% in Friday morning trading. Japan’s Nikkei dropped 1% whilst maintaining a 0.9% weekly gain.
US markets ended lower as investors collected gains from Nasdaq’s continuous rise to record levels. However, Nasdaq futures increased 0.4% in Asian trading.
Foreign institutional investors (FIIs) continued selling, offloading equities worth Rs 3,560 crore on December 12, while domestic institutional investors purchased equities worth Rs 2,646.65 crore.
Oil prices decreased slightly on Friday as analysts considered supply forecasts despite expectations of increased Chinese demand next year, while anticipating another Federal Reserve interest rate reduction next week.
Brent crude futures reduced by 8 cents to $73.33 per barrel by 0125 GMT, while US West Texas Intermediate crude stood at $69.95 per barrel, down 7 cents.
The Indian rupee strengthened by 2 paise to 84.86 against the US dollar in early trading. The dollar index, measuring the US currency against six major global currencies, increased 0.16% to 107.12.
