Stock market closes near flatline in year-end; Nifty ends above 23,650

MUMBAI: The Indian benchmark equity indices, BSE Sensex and NSE Nifty 50, witnessed a recovery from intra-day lows but ended the last trading session of 2024 near flatline on Tuesday.

The losses in the market was led by declines in IT and select banking stocks.

The BSE Sensex dropped to a low of 77,561, reflecting global market weaknesses, but rebounded to a high of 78,248 before closing at 78,139, down 0.14 per cent or 109 points.

The National Stock Exchange (NSE) Nifty 50 followed a similar trend, recovering from a low of 23,460 and surging to about 23,690, but ultimately settled at 23,644.80 virtually unchanged.

On NSE, Bharat Electronics Limited, ONGC, Kotak Bank, Trent and Coal india were the gainers, while the Adani Enterprises, Adani Enterprises, Tech Mahindra, TCS, Infosys, and SBI life remained the top losers.

During the trading session on NSE, the IT stocks drag the most, while Health Care and PSU stocks lend the support.

"As we are entering 2025, we can expect possible profit booking in high-performing stocks and indexes for which investors should be prepared. Macro factors like inflation, a weakening rupee, and high unemployment are expected to challenge market stability, with more youth turning to the stock market as a source of income," stated VLA Ambala, Co-Founder of Stock Market Today.

"FDI plays an important role in India's market. However, in 2024 FIIs turned into net sellers with almost Rs. 25,000 crore outflows and counterbalanced DIIs net buying of more than Rs. 5.5 lakh crores. Meanwhile, the market is expected to remain weak in the coming weeks, with 2025 likely testing investor patience compared to the bullish trends of 2023 and 2024," she stated.

Experts noted that the last month of 2024 remained weak for almost all emerging markets globally, with Indian markets continuing their downward trend for three months. Any upward movement in the markets now depends on the quarter three results and Trump's policies after he assumes office in January.

For the year, the Sensex gained 8.2 per cent or 8,809 points, reaching a peak of 85,978 during the year. The Nifty 50 posted an 8.8 per cent gain, marking the 9th consecutive year of growth, with a cumulative rise of approximately 200 per cent over this period.

The Indian rupee closed at a record low of 85.61 against the dollar, down 0.1 per cent on the last day of trading and 2.8 for the year. Gold saw a 26 per cent rise in 2024, driven by geopolitical tensions and central bank purchases, while silver outperformed with a 42 per cent increase. Gold prices are expected to touch Rs 82,000 in early 2025.

Oil prices edged higher, with Brent crude and WTI rising 0.8 per cent, but both benchmarks are on track to close lower for the second consecutive year. Sector performance was mixed, with the Nifty IT index down 1.5 per cent, while Oil & Gas, PSU Bank, Pharma, and Metal indices advanced.

The India VIX, a gauge of market volatility, rose 3.5 per cent to 14.47. In the primary market, Unimech Aerospace and Manufacturing made a stellar debut, listing at Rs 1,491, an 89.9 per cent premium over its issue price of Rs 785.