Markets Plunge as SENSEX, NIFTY Suffer Steepest Fall in Two Years

 

The Indian stock market faced a sharp downturn this week, with the SENSEX and NIFTY logging their worst weekly performance in two years. Investors lost nearly ₹17 lakh crore as markets declined for five straight sessions from December 16 to 20.

 

The SENSEX dropped 4,091 points (4.98%) to settle at 78,041.59, while the NIFTY fell 1,181 points (4.8%) to 23,587.5. The week started with cautious trading as investors awaited the US Federal Reserve's decision on interest rates. While the Fed announced a 25-basis-point cut, it signaled fewer rate cuts in 2025 than expected, triggering a global sell-off.

 

IT Stocks Slide

 

IT stocks were the hardest hit, with the NIFTY IT index dropping 4.8% this week. Major players like TCS, Infosys, and Wipro saw significant declines, despite the rupee hitting a record low of ₹85.07 against the US dollar, which typically benefits export-driven tech companies. Experts cited concerns over higher US interest rates dampening IT spending.

 

Pharma Sector Shines

 

Amid the chaos, pharma stocks bucked the trend. The NIFTY Pharma index rose 1.6%, supported by a weaker rupee, which boosted revenue prospects for Indian drugmakers exporting to the US.

 

MobiKwik's Impressive Debut

 

MobiKwik Systems Ltd made headlines with its stock doubling in value within three days of listing. The stock debuted at ₹440, a 57.7% premium to its IPO price of ₹279. By Friday, it reached ₹544 before closing slightly lower at ₹502.90.