Sensex Plunges 800 Points, Nifty Slips Below 24,450 as Markets Turn Cautious Ahead of Fed Meet; Banks, Oil & Gas Lead Decline.......

Today, Indian equity markets experienced a significant downturn, with the BSE Sensex plummeting over 800 points and the NSE Nifty slipping below the 24,450 mark. The Sensex fell by 756.44 points, or 0.93%, to 80,992.13, while the Nifty declined by 240.85 points, or 0.98%, to 24,427.40. This decline was primarily driven by losses in heavyweight sectors such as financials and energy.

HDFC Bank, a major player in the financial sector, saw its shares drop by 1% following a regulatory warning concerning its disclosure practices. This contributed to a 0.9% decline in the financial index. Similarly, Reliance Industries, a key constituent of the energy sector, experienced a decline of over 1%, further weighing down market indices.

Investor sentiment was also dampened by anticipation of the U.S. Federal Reserve's upcoming monetary policy meeting, scheduled for December 18. Market participants are keenly awaiting signals regarding potential interest rate cuts, which could influence global liquidity and investment flows. The cautious atmosphere led to subdued performance across various sectors, with IT firms declining by 0.4% due to their significant exposure to U.S. markets. Additionally, a record trade deficit reported in November has raised concerns about the country's economic health, adding to the bearish sentiment. Despite the overall downturn, certain segments showed resilience. Companies like Zomato registered gains, and small-cap and mid-cap stocks exhibited marginal increases, indicating selective investor optimism.

Analysts suggest that the market may remain volatile in the short term, with global economic indicators and domestic policy developments playing crucial roles in shaping investor confidence. Market participants are advised to stay informed through official channels and consider a cautious approach to trading during this period of uncertainty.