• The BSE Sensex closed at 78,139 down by 2.08% and the Nifty 50 closed at 23,645 down by 2.01% in December 2024, amid weakness in IT and select banks.
  • From a sector perspective, leading gainers were Information Technology (+6%), Teck (+5%) Consumer Durables (+3%), and Capital Goods (+2.5%) while Utilities (-6.5%), Power (-4.5%) and Energy (-3.5%) went down.
  • Foreign portfolio investors (FPIs) turned net buyers during the month and invested Rs. 17,045 crore into Indian equities, primarily through IPOs and Qualified Institutional placements, and Rs. 8,404 crore in debt markets.
  • The data highlighted that the net FPI inflows sharply plunged from ₹1.71 lakh crore in 2023 to just ₹2,026 crores in 2024, driven by elevated valuations prompting investors to redirect their investment to attractively valued Chinese equities.
  • The dampened investor sentiment was collectively driven by a mix of global and domestic factors like heightened geopolitical tensions Israel and Iran conflict, US Presidential election, Federal Reserve policy concerns, Rising inflation and slower GDP growth and depreciating rupee.

Acknowledgements: 

RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)

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