On December 31, 2024, the Indian stock markets closed lower as benchmark indices Nifty and Sensex faced pressure from losses in key sectors such as IT and realty. Investor sentiment remained subdued due to persistent Foreign Institutional Investor (FII) outflows, which continued to weigh on market performance.
The Nifty 50 index, which opened with moderate losses, witnessed a decline as major IT stocks such as Infosys, Tech Mahindra, and HCLTech were among the top losers, reflecting investor concerns over the sector's performance amidst global economic uncertainties. Realty stocks also saw a significant dip, with major companies facing selling pressure.
On the positive side, gains in sectors like pharma, oil and gas, and auto stocks provided some relief. Pharma stocks benefited from increased demand for healthcare products, while the oil and gas sector was buoyed by rising global crude prices. Auto stocks were supported by expectations of higher festive demand in the coming months.
Despite these gains, the relentless FII outflows dampened broader market sentiment, contributing to a bearish tone on the final trading day of the year. Analysts pointed to the global economic headwinds, including rising inflation and interest rates in major economies, as key factors influencing the outflows.
As a result, Nifty ended the day near 23,650, while Sensex also traded in the red, marking a cautious end to 2024. With uncertainties in both domestic and international markets, market experts remain cautious about short-term prospects, while focusing on long-term growth opportunities in select sectors.
