This story is from December 17, 2024
Stock market crash today: BSE Sensex ends 1,064 points down; Nifty50 below 24,350 - top 5 reasons for bear attack
The total market value of BSE-listed companies decreased by Rs 2.33 lakh crore to Rs 257.73 lakh crore, according to an ET report.
Among Sensex constituents, the primary contributors to the decline were Reliance Industries, HDFC Bank, Infosys, Bharti Airtel, and ICICI Bank. Conversely, Tata Motors, Adani Ports, Tech Mahindra, HUL, HCL Tech, and Power Grid showed positive movement.
Why BSE Sensex, Nifty50 crashed today
1) Pre-Fed meeting uncertainty
The CME FedWatch tool indicates a 97% likelihood of a 25 basis-point rate reduction on Wednesday. However, uncertainty persists regarding the Fed's 2025 rate strategy due to recent US data showing sustained inflation and economic resilience.
"Globally, markets will be looking forward to the FOMC outcome on Wednesday. Markets have already priced in a 25bp rate cut, so the focus will be on the Fed chief's commentary. Any departure from dovish commentary will be negative from the market's perspective," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
2) Chinese economic slowdown
November data revealed slower-than-expected Chinese consumption. Retail sales increased by only 3%, significantly lower than October's 4.8%, while industrial production grew 5.4% year-on-year, matching October's figures. This deceleration could affect global commodity demand, particularly impacting India's metals, energy, and automotive sectors.
The Nifty Metal and Auto sectors declined by over 0.6% in today's trading.
3) Dollar strength
The dollar index remained stable at 106.77, heading towards a 5% annual increase. A stronger dollar reduces international investor interest in Indian equities and increases dollar-denominated debt costs for Indian firms.
4) Increased trade deficit
India's November merchandise trade deficit reached a record Rs 37.84 billion, increasing from October's Rs 27.1 billion, due to higher imports and reduced exports.
"The sharp spike in India's trade deficit to $37.8 billion in November will put pressure on the rupee, pushing it towards 85 to the dollar. Exporters, like IT and pharma, will benefit from a depreciating rupee, but for importers, the increased import cost will impact their stock prices," said Vijayakumar.
5) International market trends
Indian markets followed global counterparts downward as investors anticipated central bank meetings. While the US Federal Reserve may reduce rates, the Bank of Japan is expected to maintain current policies.
The MSCI Asia-Pacific index (excluding Japan) decreased 0.3%. Japan's Nikkei fell 0.15%, whilst European futures indicated subdued openings. Eurostoxx 50 futures dropped 0.16%, German DAX futures declined 0.06%, and FTSE futures weakened by 0.24%.
Top stocks to buy for 2025: Which are the best stocks to buy for the New Year 2025? Which stocks should you invest in for the long-term? Financial experts advise investors to select high-quality companies with appropriate valuations. ET Wealth has identified nine specific stocks. These selections feature companies where analysts have revised upward their full-year earnings or PAT projections for both 2024-25 and 2025-26. These nine selected stocks currently indicate potential double-digit appreciation by December 2025. We take a look at the top stocks for 2025:
Disclaimer: The opinions, analyses and recommendations expressed here do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
Godrej Properties stock outlook 2025: Godrej Properties company maintains a robust pipeline of upcoming launches (spanning Gurugram, Noida, Mumbai, Pune and Hyderabad) scheduled for the latter half of 2024-25.
Current price: Rs 2,899/-
Upside potential: 25.9%
Given its established brand presence and sustained market demand, the company is well-positioned to surpass its projected targets for 2024-25. Additionally, its strategic emphasis on economically advantageous projects and consistent sales performance has resulted in substantial operating cash flow. These positive cash flow trends are anticipated to continue through the remainder of this fiscal year.
HDFC Life Insurance Company stock outlook 2025: Market experts highlight several key strengths of the organisation, including a well-balanced product portfolio, efficient channel operations, robust distribution infrastructure, continuous product development, emphasis on agency networks through franchise investments, and enhanced persistency across various segments.
Current price: Rs 633/-
Upside potential: 27.9%
PNB Housing Finance stock outlook 2025: An analysis from ICICI Securities, published following the Q2 results, highlights several crucial strengths of the company.
Current price: Rs 965/-
Upside potential: 24.4%
The strengths include its transformed operational approach emphasising profitable retail portfolios, stringent monitoring of asset performance, enhanced emphasis on resolving corporate non-performing assets, substantial return on assets, and sophisticated liability administration.
Max Financial Services stock outlook 2025: Following the September quarter results, Elara Securities published a report highlighting the company's potential for growth surpassing both industry and private sector rates.
Current price: Rs 1,165/-
Upside potential: 21.9%
This optimistic outlook stems from enhanced distribution via agency networks, significant expansion in the Axis channel following rebranding initiatives, and robust product portfolio offerings.
Inox Wind stock outlook 2025: A Nuvama analysis on Inox Wind indicates strong growth prospects for the company, supported by several key factors. These include annual industry tailwinds of 12-14GW TAM, advanced technological capabilities, profitable maintenance service operations and sound financial health.
Current price: Rs 208/-
Upside potential: 17.7%
Prestige Estates Projects stock outlook 2025: A report by Antique Stock Broking, published following the September quarter results, indicates that the firm's diversification approach positions it well to benefit from the current housing growth phase.
Current price: Rs 1,751/-
Upside potential: 16.5%
The analysis highlights the organisation's robust market position in three crucial regions—Bengaluru, Hyderabad, and MMR—whilst noting its strategic expansion into emerging markets such as Noida, Chennai, and Pune as significant advantages.
Power Finance Corporation stock outlook 2025: Following the September quarter results, a report by Motilal Oswal highlighted several positive aspects of the financial performance.
Current price: Rs 517/-
Upside potential: 16.0%
The analysis emphasised four crucial strengths: clear prospects for loan expansion, robust earnings progression, effective management of stressed assets, and sound return metrics.
Hindustan Aeronautics stock outlook 2025: Market experts highlight HAL's exceptional operational performance, impressive return metrics, potential for international sales, favourable price levels and India's expanding air defence requirements as crucial advantages.
Current price: Rs 4,628/-
Upside potential: 15.5%
The firm's recent elevation to Maharatna PSU status by the government has granted it greater independence in financial decisions and operational matters.
Amber Enterprises India stock outlook 2025: Following the September quarter results, Anand Rathi published a report projecting significant growth for the company. The analysis forecasts an increase in revenue from 25.6% in 2023-24 to 37% in 2026-27.
Current price: Rs 5,724/-
Upside potential: 16.6%
Additionally, the Return on Capital Employed (RoCE) is expected to rise from 8.3% to 20.6% during the same period, primarily driven by positive momentum in electronics and mobility sectors.
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