Fed Hawkish Comments - Indian Markets Downturn ??

The Indian stock market experienced notable volatility, primarily influenced by global monetary policy signals and sector-specific developments.

A significant factor contributing to this downturn was the U.S. Federal Reserve's recent policy announcement. The Fed implemented a 25 basis point rate cut but projected only two rate reductions in 2025, half of what investors had anticipated.?

This hawkish outlook dampened risk appetite and led to concerns over increased foreign investor outflows from Indian equities. The financial and IT sectors were notably impacted, each declining by over 4-5% during the week.

This week, the Nifty 50 and Sensex dipped by 4.77% and 4.98% respectively. The Nifty 50 closed around the 23,600 level while the Sensex closed around the 78,000 level.

Stock Spotlight ??

Top Gainers ??

Five Star Business - ?767.25 (+18.26%)

General Insurance - ?501.00 (+16.50%)

KFin Tech - ?1,444.50 (+15.31%)

Newgen Software - ?1,574.05 (+13.21%)

Techno Electric - ?1,625.15 (+12.56%)

Top Losers ??

Angel One - ?2,881.70 (-14.97%)

Deepak Fertilisers - ?1,146.10 (-13.91%)

Adani Green Energy - ?1,034.35 (-13.69%)

LTIMindtree - ?5,824.30 (-13.26%)

Siemens - ?6,868.90 (-12.88%)

Sectors in Focus ??

Financial Services – Private Banks ??

Post the reduction in CRR by 0.50% in the last. The markets are expecting ?1.6 lakh crore of liquidity infusion which is a very good sign for the banks and financial companies.

The financial services sector is promising, showing resilience, with a narrowing gap between bank credit growth and deposit growth, which is expected to ease margin pressures.?

The banking sector has posted strong return ratios and improved capital adequacy levels, reducing the need for fresh capital infusion.?

Valuations of private sector banks remain attractive compared to the broader market, indicating stability and long-term growth potential.

Moreover, the Fed once again reduced the interest rate by 0.25% this week. There is some expectation that the new RBI governor will reduce the interest rate in the Feb’25 RBI MPI meeting.

IPO Insights ???

After a long time, it was a very busy week for the IPO market. A lot of IPOs have opened and closed with some IPOs giving stellar gains.

8 IPOs opened this week. Some of the favourite IPOs are DAM Capital Advisors, Mamata Machiner, Transrail Lighting, etc. Out of these 8 IPOs, 5 will close on 23rd December and 3 will close on 24th December.

5 IPOs listed this week. Vishal Mega Mart, One MobiKwik, Sai Life Sciences, and Inventurus Knowledge have given stellar listing gains above 30-40%. Despite the high demand, the International Gemmological IPO listed way below the expectations.

Since the market corrected this week, the upcoming IPOs listing will not be bumper unless the market recovers.

That’s all for this week.?

We’ll see you again next week ??

Happy Investing!