Tracking weaker Asian markets, Indian stocks in the last trading session of 2024 opened lower. Earlier, the 30-share BSE Sensex was down 0.51 percent or 396.7 points at 77,851.43, while the NSE’s Nifty50 index was down 0.39 percent or 93 points at 23,551.9.
Sector-wise, IT and Realty were the worst hit with IT index falling up to 2 percent, while Pharma, PSU Banks and Oil & Gas indices traded with lower gains.
In 2024, the Nifty rallied slightly from January to September, reaching an all-time high of 26,277.35, before giving up some gains to close the year with an impressive 8 percent gain. This marked the Nifty’s ninth consecutive year of positive gains, despite FIIs selling shares worth Rs 3,03,000 crore.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “December was weak for global stock markets. The S&P 500 fell 2.34 percent and the Nifty fell 2.6 percent. Markets are gearing up to enter the new year cautiously as uncertainty is high. and rates widened Higher US bond yields and a stronger dollar will ensure that FIIs will continue to sell all time.”
DII buying will not be strong enough to drive the market much higher. The fact is that even DIIs and HNIs do not have the confidence to accumulate stocks, except for some pockets of fair value. Confidence in stockpiling will emerge only when major indicators suggest a recovery in growth and earnings, he added.
As we look ahead to 2025, rising US bond yields pose a key risk, noted Prashanth Tapse, Senior VP (Research), Mehta Equities.
Asian stocks
The benchmark MSCI Asia ex Japan index traded in the red-down by 0.18 percent at 571.16. Most Asian markets traded on a negative note in year-end trading with caution. The Shanghai Composite and Taiwan Weighted indexes were down 0.8 percent at the last count, while Japanese markets celebrated a weeklong holiday.
