Market Wrap, December 17: Jitters ahead of Fed rate decision, weak macro data spook investors; SENSEX, NIFTY nosedive 1.3%

While a quarter-point rate cut is widely expected and priced in, markets are bracing for the central bank to scale back its easing in 2025 in anticipation of higher inflation under the Donald Trump administration, as per news reports. 

Besides, the sell-off in financial stocks, led by HDFC Bank, and the widening trade deficit, too, dented sentiment. 

India's merchandise exports in November dipped by 4.85% to $32.11 billion against $33.75 billion a year ago, according to government data released on Monday.

Imports increased by 27% to $69.95 billion in November compared to $55.06 billion in the year-ago month.

The trade deficit, or the gap between imports and exports, widened to $37.84 billion during the month under review.

At close, the S&P BSE SENSEX stood at 80,684.45, down 1,064.12 points, or 1.30%, while the broader NIFTY50 index settled at 24,336, down 332.25 points, or 1.35%. 

Top gainers and losers

48 out of 50 constituents of the NIFTY50 index ended in the red and just two in the green. 

The top five losers were Shriram Finance, Grasim Industries, Hero MotoCorp, Bharti Airtel, and JSW Steel.

The two gainers were Cipla and ITC Ltd. 

As regards SENSEX, all the 30 stocks ended in the red. The top contributors to the index's crash were HDFC Bank, Reliance Industries, Bharti Airtel, and TCS. 

Market Statistics

The market breadth was in favour of declines. 

As many as 4,107 stocks traded on the BSE on Tuesday. Out of this, 2,442 scrips declined, and 1,576 advanced, while 89 stocks remained unchanged. 

A total of 278 stocks hit their 52-week highs while 28 stocks touched their 52-week lows. 

Further, five stocks on the BSE hit their upper circuit limits, and just one its lower circuit.

Buzzing Stocks

HDFC Bank shares ended 1.71% lower at ₹1,832.85 apiece on the BSE after the private sector lender received a second warning letter from the capital markets regulator, the Securities and Exchange Board of India (SEBI), within a week.

In an exchange filing on Monday, HDFC Bank informed that SEBI issued an administrative warning letter to the bank alleging non-compliance with the market regulator's listing regulations regarding the resignation of Arvind Kapil, the head of the bank's mortgage business.

The market regulator advised the bank to exercise due caution in the future and avoid the recurrence of such instances. "Failing which appropriate enforcement action may be initiated," it added.

RIL shares shed 1.8% to end at ₹1,245.10 on the BSE. It has been a listless year for the oil-to-telecom conglomerate as weak financial results weighed on the sentiment.

Shares of the company have fallen over 3% on a year-to-date basis, or so far in the calendar year, 2024. 

Broader Market

The BSE MidCap index ended at 47,815.80, down 311 points, or 0.65%, while the BSE SmallCap index settled at 56,928.98, down 299 points, or 0.52%. 

Sector Watch

All sectoral indices ended in the red. The biggest loser was the telecom pack. The BSE Telecommunication index settled at 2,940.88, down 2.18%.