Market conclude 2024 with gains, extend winning run to 9th year

The Indian equity markets maintained their upward  trajectory in 2024, with Sensex rising 8.17% and Nifty advancing 8.8%, achieving a remarkable nine-year streak of annual gains.At close, the Sensex was down 109.12 points or 0.14 percent at 78,139.01, and the Nifty was up 13.25 points or 0.06 percent at 23,658.15. About 2,239 shares advanced, 1,571 shares declined, and 97 shares were unchanged.
On the sectoral front trends remained mixed, with energy and pharma seeing gains, while IT and realty ended in the red. The broader market showed a similar pattern, with small-cap index gaining over half a percent, while midcap settled nearly unchanged.
According to information, both benchmark indices, Sensex and Nifty, saw sharp declines in the December quarter, falling 7.3 percent and 8.5 percent, respectively—their steepest quarterly drops since June 2022. Broader markets also faced significant setbacks, with the BSE MidCap and SmallCap indices dropping 6 percent and 3.5 percent, marking their worst performances since mid-2022 and March 2023, respectively.
Rupee Close:
On 31 Dec'24,the Indian rupee depreciated 13 paise to close at a fresh record low of 85.65 against the U.S. dollar on Tuesday ,ending the year with a sharp 3% loss on significant foreign fund outflows and a strong greenback in global markets.
Forex traders reportedly stated the rupee has been under continued pressure amid the Federal Reserve’s cautious stance on rate cuts and the “Trump factor” driving up the dollar index (DXY) and U.S. 10-year bond yields. Additionally, slowing domestic macroeconomic growth, widening trade deficit and persistent foreign fund outflows have further fuelled the rupee’s depreciation.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying the final day of the year concluded with minor losses, despite a recovery from the day's lows. However, the pressure of consolidation is dragging the domestic momentum amid negative global cues and ongoing concerns over a strengthening dollar index and US bond yields. Losses were mainly in IT and realty stocks, while other sectors saw gains. FII outflows and rising crude prices are pressuring the rupee and dampening sentiment. Nonetheless, the market's focus is expected to shift back to domestic Q3 results for insights into potential growth and earnings recovery and to the Union budget, offering a short- to medium-term perspective amid global uncertainties.
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(Business Correspondent)