As the major indices, the Sensex and the Nifty 50, saw their biggest weekly declines in two years, Dalal Street was in ruins this week. The cautious approach taken by the Federal Reserve and its softer rate-cut trajectory for 2025 exacerbated FII selling in the domestic market.
The dip today caused the Sensex to drop 5% for the week, falling more than 1,000 points in three of the five sessions. BSE-listed companies lost almost Rs 17 lakh crore in market capitalization as a result of the unrelenting decline.
The Nifty saw a 1.5% reduction to close at a one-month low of 23,587.50 on December 20, the conclusion of the week, while the Sensex saw a 1.5% decline to conclude at 78,041.59.
The Nifty Midcap 100 and Nifty Smallcap 100 both saw losses of 2.8% and 2.2%, respectively, due to the selloff in the overall market. This marked the fourth consecutive day that the Nifty Midcap 100 and Smallcap 100 indices had been declining. Both of the indices were down about 3.5% for the week.
Nifty Reality, Nifty PSU Banks, and Nifty IT fell the most today, although all sectoral indices ended the day worse than they started. Today’s 1.5% decline in the Nifty Bank index brought its weekly down to 5.3%.
