After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on weak note.Benchmark equity indices, the BSE Sensex and NSE Nifty50, witnessed a sharp correction, ending the week’s last trading session down by over 1% each, weighed by selling across the counters.At the closing bell, the BSE Sensex stood lower by 1,176 points (down 1.5%).Meanwhile, the NSE Nifty closed lower by 364 points (down 1.5%).Nestle, HDFC Life Insurance, and ICICI Bank were the top gainers today.Trent, Axis Bank, and Tech Mahindra on the other hand, were among the top losers today.The GIFT Nifty ended at 23,635 down by 369 points.The BSE Mid Cap ended 2.1% lower and the BSE Small Cap index ended 2.4% lower.Barring the healthcare sector most sectoral indices are trading negatively with stocks in the power sector, realty sector, and capital goods sector witnessing selling pressure.The rupee is trading at 85.01 against the US$.Gold prices for the latest contract on MCX are trading 0.2% higher at Rs 75,806 per 10 grams.Meanwhile, silver prices are trading 0.6% lower at Rs 86,710 per 1 kg.Here are four reasons why Indian Markets are falling today#1 US Fed FactorThe Fed revised its rate reduction outlook, projecting only two more rate cuts of a quarter-percentage point by the end of 2025 as against the market’s expectations of three or four rate cuts. This seems to have spooked investors#2 FII OutflowA hawkish Fed has strengthened the US dollar and bond yields and accelerated the foreign capital outflow.FIIs (foreign institutional investors) have sold off Indian equities worth over Rs 120 bn in the last four sessions amid a strengthening dollar, rising bond yields, and the prospects of fewer rate cuts by the US Fed next year.#3 Macroeconomic ConcernsInvestors also appear concerned about the deteriorating domestic macroeconomic picture. The rupee is at an all-time low of the dollar. Moreover, the country’s trade deficit widened to an all-time high in November.Overall economic growth is also showing signs of slowing. India’s Q2 GDP prints were the lowest in nearly two years. It showed that Indian economic growth slowed for the third consecutive quarter.#4 Uncertainty over Earnings RecoveryAfter weak Q1 and Q2 earnings of Indian corporates, all eyes are on the December quarter (Q3) earnings. While experts expect earnings recovery, they hint that a decent recovery could be expected only from Q4.
Why RBL Bank Share Price is FallingIn news from the banking sector, RBL Bank shares extended their freefall to the seventh consecutive session after losing another 7% on 20 December. In these seven sessions, the stock has shed 16% of its value.Meanwhile, the stock also exited the F&O bank list today and consequently, witnessed a spike in trading volumes in the counter.As many as three crore shares of the lender changed hands on the exchanges so far, thrice the one-month daily traded average of one crore shares. The steep spike in trading volumes further put pressure on the stock.
Mobikwik Shares Skid 6%Moving on, recently listed shares of One MobiKwik Systems fell by as much as 5.7% on Friday to Rs 510.3 on the BSE.This decline came as investors engaged in profit booking after a sharp rally of 37% in the previous two days following the fintech firm’s Dalal Street debut.MobiKwik, which was listed on the stock exchanges on Wednesday at a 58.5% premium over its issue price of Rs 279, saw its shares open at Rs 442.25 on the BSE. The stock had already delivered a 117% return as of Thursday, peaking at an intraday high of Rs 605 before retreating on Friday.The fintech company’s IPO, valued at Rs 572 crore, was oversubscribed by 119 times, driven by optimism surrounding its profitability and the booming digital payments sector. The funds raised are earmarked for scaling financial and payment services, advancing AI and machine learning, and enhancing payment device infrastructure.Founded in 2008, MobiKwik operates a dual-sided payments platform catering to over 161 million registered users and 4.26 million merchants as of June 2024.
Siemen Shares Slip 9%Moving on to news from the engineering sector, Siemens’s share price sank up to 9.4% to Rs 6,912 per share on the BSE on Friday, 20 December 2024. The stock of the heavy electrical equipment company recorded its sharpest intraday fall in over six months.Earlier, on June 4, 2024, Siemens’s share price had tanked 20% in intraday trade.Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power. The company, in an investor presentation today, said that the demerger of Siemens Energy is progressing and expects to complete the demerger & listing in calendar year 2025.However, the management of the multinational company, reportedly, said that while private capex in semiconductors, batteries, and electric vehicle (EV) segments looks decent, the overall capex hasn’t picked up well.On the order pipeline, Siemens management said it is not participating in any line commutated converter (LCC)-based HVDC projects in India or globally. It, however, will target the voltage source converter (VSC)-based projects.
Why Alembic Pharma Share Price is RisingMoving on to news from the pharma sector, pharmaceutical major Alembic Pharmaceuticals shares were in demand on Friday, 20 December 2024, as the scrip soared as much as 2.9% to hit an intraday high of Rs 1,081.10 apiece.The uptick in Alembic Pharma share came after the company announced that it has received final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Divalproex Sodium Delayed-Release Capsules USP, 125 mg.Divalproex Sodium is an anti-epileptic medication used for monotherapy and adjunctive therapy in treating complex partial seizures, simple and complex absence seizures, as well as adjunctive therapy in patients with multiple seizure types, including absence seizures.The approved ANDA is considered therapeutically equivalent to the reference listed drug (RLD), Depakote Sprinkle Capsules, 125 mg, by AbbVie Inc.More By This Author:Sensex Today Trades Flat; Nifty Below 24,000
Sensex Today Tanks 964 Points; Nifty Ends Below 24,000
Sensex Today Tanks 900 Points; Nifty Below 24,000
