Mumbai (Maharashtra) [India], December 17 : The stock market ended Tuesday deep in the red, with benchmark indices witnessing sharp declines amid concerns over weak trade data and a surging trade deficit.
The Sensex plunged 1,064.12 points, or 1.3 per cent, to close at 80,684.45, while the Nifty fell by 332.25 points, settling at 24,336.00.
Out of the 50 Nifty companies, only two stocks advanced, while 48 recorded losses. Among the gainers were Copla and ITC, which managed to buck the downward trend. However, the session was marred by steep losses for top laggards, including Shriram Finance, Grasim, Hero Motoco, Bharti Airtel, and JSW Steel.
The bearish sentiment was triggered by the release of India's trade data for November, which revealed a sharp decline in exports, reflecting weak global demand. This raised concerns about the country's economic outlook and growth trajectory, prompting widespread selling in equity markets.
India's trade deficit surged to a record high, further dampening investor sentiment. The slump in exports not only stoked fears of slowing economic momentum but also exerted significant pressure on the Indian Rupee, which depreciated during the trading session.
The combination of weak exports, currency pressure, and the widening trade deficit weighed heavily on investor confidence, driving markets deeper into negative territory as the session progressed.
Market analysts attributed the sharp declines to heightened investor caution amid deteriorating macroeconomic indicators.
VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today, said, "The market predicts that the industry will experience negative annual growth. This has fueled negative feelings among investors. Additionally, the weakening economy, marked by depreciating currency, is reducing our purchasing power.
"Meanwhile, MSMEs, which play a key role in contributing to GDP, face challenges in being profitable due to current business policies, while, medium-sized businesses are also feeling the pressure. To solve these problems and protect the interests of retail investors in the SME listing space, market regulators are expected to propose new measures," she added.
As investors continue to digest the implications of India's trade data, the market may remain under pressure in the near term. Analysts warn of further volatility as global demand conditions, domestic economic indicators, and currency movements remain key factors to watch in the coming days.
Tuesday's sell-off underscores the fragility of investor sentiment in the current environment, with market participants closely monitoring both domestic and global developments for cues on future direction.
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