Stock Market Today: Sensex Plunges 960 Points, Nifty Settles Below 23,960

At the close, the Nifty 50 stood at 23,952, down by 247 points or 1 per cent. Similarly, the 30-share Sensex ended at 79,218, dropping 964 points or 1.2 per cent

Indian benchmark indices Nifty and Sensex slid for the fourth consecutive session on Thursday. This week, the indices have fallen by over 3 per cent, wiping out more than Rs 10.5 lakh crore in investor wealth. The Nifty 50 dropped below the 24,000 mark, while the Sensex plummeted by 1,000 points. 

At the close, the Nifty 50 stood at 23,952, down by 247 points or 1 per cent. Similarly, the 30-share Sensex ended at 79,218, dropping 964 points or 1.2 per cent.

Experts had expressed caution about the Nifty breaching the 24,000 mark, but the bulls defended the next support level at 23,923, which marks the low point of the December series.

The broader markets limited their losses, with the Nifty Midcap 100 declining by 0.3 per cent, while the Nifty Smallcap 100 index fell by around half a per cent. On the sectoral front, banking, metal, and tech stocks led the declines.

Vinod Nair, Head of Research at Geojit Financial Services, noted that sectors sensitive to interest rates, such as banking and real estate, were hit hardest. 

“The Indian market saw a widespread decline following a global sell-off driven by the US Fed’s hawkish stance on interest rates. Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt. However, the BoJ's decision to keep its interest rate steady, which surprised economists, aided in reducing the selling pressure. Despite this, investor caution persisted amid ongoing FII selling, with a strategic shift towards defensive sectors like pharma as evidenced by their outperformance," Nair added.

Infosys, LTIMindtree, and other technology stocks were among the biggest losers during the session. The domestic IT sector, heavily reliant on services exports, faces pressure from a higher interest rate environment in the US, which drives up bond yields, strengthens the dollar, and raises the cost of IT services for US clients, potentially dampening demand.

Pharma stocks stood out as exceptions in an otherwise weak market, with major names like Dr Reddy's Labs, Cipla, and Lupin rising by 1-4 per cent on December 19. Other pharma stocks, including Laurus Labs, JB Pharma, Ipca Labs, Aurobindo Pharma, Abbott India, Natco Pharma, and Glenmark, also saw gains of 1-5 per cent.

Three Nifty 50 stocks—Nestle India, Asian Paints, and IndusInd Bank—reached their respective 52-week lows during today's trade. Together, these stocks have wiped out Rs 2.2 lakh crore in investor wealth from their 52-week highs, with losses of up to 44 per cent.