Sensex, Nifty Decline for the Fourth Straight Session
The Indian stock market looks highly volatile, as sensex and nifty drank from the cup of losses, for the fourth time this week,** analysts suggest this is due to horde of geopolitical Economic issues including a strong us employment data, a soaring dollar** and higher crude oil prices.
Market Performance Snap
. Sensex droppped 761.57 points, which is equivalent to 0.98%, bringing it down to 76,617.34 points.
. Nifty experienced a significant 176.1 points dip (0.75%) and currently stands at 23,255.40.
. More than 162 stocks suffered great losses by hitting 52 week lows.
Zomato’s leading loss with a % drop to ₹238.75, alongside its losses HDFC, Tech Mahindra, Adani Ports, Mahindra & Mahindra, Tata Steel X suffered less than a 1% losses.
(Scene Setter) But Why Are the Markets Declining to Such an Extent?
1. US Investment opportunities among other factors sulking us dollar Prices.
– The total employment opportunities created in December surged the forecasts and came out to be 256,000 which doubled the forecast of 165,000.
– Fewer employment opportunities and lower unemployment toms suggest the economy is healthy causing a drop in the us dollar to 4.1% decreasing the chances for any federal reserve supported rates dropping in 2025.
– With a stronger US economy and dollar close to a 110 which severely weakened the rupee that plummeted to 86.27
2. The crude oil market’s uncertainty. Over $80 barrel for a barrel of crude oil has pushed prices high due to inflation which has resulted into rise in the import cost into India
3. FPI Outflows-
US bond yields are above 4.7% which is triggering further selling by Foreign Portfolio Investors (FPIs).
Sector Highlights
IT and Pharma Stocks Stable
– The steady state of the US economy helps the IT stocks to remain strong and with the demand for **pharma and healthcare** still on the rise.
Consumer and Retail Stocks come Under Pressure
Avenue Supermarts Ltd (DMart) fell 2.53% to ₹3,592 as interceptions shows the competition Wharton’s yield no margin for DMart.
Adani Wilmar”s shares stick down badly
-Shares of the company Adani Wilmar declined by 7.75% to ₹269 extending the previous Friday’s 10%, availing the company from its Offer For Sale (OFS) market
Expert Insights
The chief investment strategist at Geojit Financial Services, V.K. Vijayakumar Says –
“The robust job numbers from the US weaken the global markets. The general health continues to create a resilient demand for the IT stocks persisting though with a potential for long position investors.”
Outlook: A Recovery is On The Cards
As stated by Emkay Global it is likely that southward trend of the domestic market would continue until March and around April stability is expected. According to the brokerage improvement in the earnings along with buying from FPI are sure to help propel recovery.
Nifty Target for 2025: is 25,000 indicating the potential for a 6.5 percent return.
Small and Mid-cap (SMIDs) – The stocks are predicted to outperform by a wide margin on account of sound fundamentals.
Recovery in the Consumption Pattern: It is anticipated to happen later in the second half of the year 2025.
Emkay stated: “We are nearing the end of the earnings downgrade cycle, with only a 2-3% risk to FY26 consensus Nifty EPS of ₹1,251. This creates opportunities for long-term investors to accumulate quality stocks.” Key Takeaway While markets are under pressure due to global and domestic headwinds, experts suggest this phase could provide a chance for investors to accumulate fundamentally strong stocks, particularly in banking, IT, and healthcare sectors. Stay tuned for further updates and insights on market trends!
