Closing Bell: Market Ends Flat On The Last Day Of 2024; Sensex & Nifty Muted, IT Stocks Drag; PSU Support

The Indian stock market ended the calendar year 2024 on a cautious note, with benchmark indices Sensex and Nifty closing near the flatline in a session marked by subdued activity and thin volumes. Despite global headwinds and weak domestic cues, selective sectoral strength helped offset broader market declines.

The Sensex closed 109 points lower, down 0.14%, at 78,139.01, while the Nifty 50 ended 0.10% lower, shedding 13 points to settle at 23,644.80. The Midcap Index slipped 36 points, or 0.06%, to close at 57,153, and the Nifty Bank declined 0.18%, finishing 66 points lower at 50,887.

The day's subdued performance reflected ongoing challenges, including weak quarterly earnings, persistent foreign capital outflows, geopolitical concerns, and limited prospects for rate cuts by the US Federal Reserve in 2025. The cautious tone was evident as IT stocks took a significant hit, dragging the indices lower, while healthcare and public sector undertaking (PSU) stocks provided crucial support.

The IT index was the session's worst-performing sector, falling 1.44%, driven by heavy losses in major stocks like Infosys and TCS. The sector's decline is attributed to concerns about US revenue exposure amid signals from the U.S. Federal Reserve that fewer rate cuts are likely in the coming year. Rising Treasury yields in the US have made emerging markets like India less attractive to foreign institutional investors (FIIs), leading to continuous selling pressure. FIIs offloaded shares worth approximately Rs 23,300 crore over the last ten sessions.

Healthcare stocks gained 0.4%, while PSU stocks rose 0.7%, providing much-needed relief to the indices. The Nifty PSU Bank index emerged as a standout performer with a 0.73% gain. Nifty Oil and Gas Index topped sectoral gainers with a 1.06% rise. Nifty Private Bank Index edged up slightly by 0.07%, while Nifty Bank slipped 0.18%.

Easy Trip Planners shares slumped 7% following reports suggesting promoter Nishant Pitti may be selling a stake through block deals. Adani Enterprises witnessed profit booking and ended as the top Nifty loser. RVNL snapped a nine-day losing streak, closing 3% higher on the back of a new order win.

Avanti Feeds & Apex Frozen both stocks surged up to 14% after positive brokerage commentary. ITD Cementation paired gains from a Rs 1,650 crore contract win, ending the session 1% higher. AU Small Finance Bank: Declined nearly 3% amid updates from the Reserve Bank of India's Financial Stability Report (FSR).

The overall market breadth remained positive, with the advance-decline ratio standing at 2:1, indicating robust buying interest in midcap and small-cap stocks. BSE Midcap Index rose 0.13, BSE Smallcap Index outperformed, climbing 0.71%.

Global & Domestic Factors

Weak global cues weighed on sentiment as markets digested the Fed's hawkish stance on interest rates. Domestically, the Reserve Bank of India's FSR report provided insights into potential risks in the banking sector.

Outlook for 2025

Despite the cautious close to 2024, analysts believe that key reforms, continued economic growth, and sector-specific opportunities could support markets in the coming year. However, persistent foreign outflows and global monetary policy trends remain factors to watch.

Closing Note

The last trading session of 2024 was a mixed bag, reflecting the complexities of a challenging year. While IT stocks bore the brunt of selling pressure, selective buying in healthcare, PSU, and small-cap segments highlighted investor interest in specific themes.