Final Trade: Sensex Closes 109 Points Lower on Last Trading Day of 2024

On December 31, the Indian equity markets concluded the final trading session of the year on a cautious note. Early losses were pared, but both benchmark indices still closed lower. The Sensex fell by 0.14 percent or 109.12 points, ending the day at 78,139.01. Meanwhile, the Nifty50 index also experienced a decline, finishing with a negative bias at 23,644.8.

IT Sector Pulls Down Indices

The primary drag on the indices came from the IT sector, where major players such as Tata Consultancy Services, Tech Mahindra, Infosys, and HCL Tech all witnessed a decline of over two percent. This downturn in the tech sector is largely connected to global recession concerns and rising U.S. Treasury yields, which typically affect high-growth industries.

Despite the IT sector's struggles, financials and some consumer stocks managed to provide a cushion against further declines. For instance, State Bank of India (SBI) saw an increase of 1.8 percent in its shares, while Nestle India and Asian Paints also recorded gains of over one percent each, benefiting from stable domestic demand.

Sector Performance and Market Trends

Analyzing sector performance, the IT index emerged as the largest loser, plunging by two percent. Other sectors, including metals and automotive, exhibited mixed results, with Tata Motors and Adani Ports showing slight gains. The FMCG index, however, enjoyed modest upsides, fueled by optimism regarding recovering rural demand.

In the broader market overview, mid-cap and small-cap indices ended the day flat, suggesting a careful sentiment among investors. Although overall performance was muted, there were isolated instances of stock-specific activity that stood out.

Global Economic Influence

Global cues significantly impacted investor sentiment. Asian markets generally struggled, influenced by worries over climbing U.S. bond yields and a slowdown in economic growth in China. As a result, Indian markets, along with other emerging markets, felt the fallout of foreign institutional investors offloading equities.

Looking Ahead

Market participants are now closely monitoring global economic data and trends in U.S. Treasury yields for future indications. Analysts mention that the upcoming earnings season and expectations surrounding the Union Budget could have considerable effects on market movements in January.

Given that market volatility appears to be increasing, traders are encouraged to maintain a cautious approach in the near term.

Sensex, Nifty, IT