Summary of the Day's Market Performance

Market Overview

• Sensex: Fell sharply by 1,064.12 points (-1.30%) to close at 80,684.45.

• Nifty: Dropped 332.25 points (-1.35%) to settle at 24,336.00.

• Midcap and Smallcap Indices: Declined by 0.5% each, tracking the broader market.

• Sectoral Highlights:

  • All sectors ended in the red, with Auto, Bank, Energy, Metal, and Oil & Gas down 1% each.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-6,409.86 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹2,706.48 crore (Net Buyers)

FIIs continued significant outflows amid the strengthening US dollar and rising bond yields, while DIIs provided partial support.

1. Global Policy Overhang:

   • Investors are cautious about key policy decisions made by the US Fed, BoJ, and BoE.

   • A 25bps rate cut from the US Fed is already priced in, but concerns linger over hawkish commentary.

2. Rupee Weakness:

   • The INR hit an all-time low amid a record-high trade deficit, adding pressure to the market.

3. Persistent FII Outflows:

   • Rising US bond yields and a stronger dollar drove sustained foreign outflows, contributing to the pessimistic sentiment.

• What is a Lower Circuit?

  • A lower circuit is the maximum limit a stock's price can drop in a single trading session. It is set by regulators to curb excessive volatility and protect investors.

Key Stock Movements and News

• Top Loser:
  Shriram Finance, Bharti Airtel, Grasim Industries, Hero MotoCorp, JSW Steel.

• Only Gainer:
  Cipla bucked the trend to close in the green.

1. Gas Stocks Slump:

   • IGL, MGL, and other gas stocks declined amid reports that natural gas will not be included in GST at the upcoming council meeting.

2. ITC:

   • Remained in focus as it announced January 1, 2025, as the effective date for the demerger of its hotel business.

3. Texmaco Rail:

   • Rallied after bagging a ₹187 crore order from the Chhattisgarh government.

4. Piramal Pharma:

   • Rose 4% after JM Financial initiated coverage, projecting a 30% upside.

5. RVNL:

   • Shares rose on securing a ₹270 crore order from Maharashtra Metro.

6. Oriana Power:

   • Jumped 9% after signing a ₹10,000 crore MoU with the Rajasthan government.

7. Food Delivery Stocks:

   • Zomato and Swiggy are in focus as the GST Council considers reducing tax on online food delivery from 18% to 5%.

8. TARC:

   • Locked in a -10% lower circuit after SEBI appointed a forensic auditor to investigate its financials.

• ITC: Positive traction is expected as the demerger date approaches.

• Piramal Pharma: Strong upside potential per brokerage coverage.

• Zomato and Swiggy: Watch for GST Council's tax decisions impacting growth prospects.

The market witnessed a sharp decline as pessimism gripped investors ahead of global policy announcements: persistent FII outflows, rupee depreciation, and trade deficit concerns added to the bearish sentiment. However, stock-specific action in companies like Oriana Power, Piramal Pharma, and RVNL provided a silver lining. All eyes are now on global central bank policies and their potential impact on the Indian markets.

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