After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.

Benchmark equity indices BSE Sensex and NSE Nifty50 witnessed a sharp correction, settling down by over 1% each, tracking the decline on Wall Street following US Fed Chairman Jerome Powell's hawkish commentary.

At the closing bell, the BSE Sensex stood lower by 964 points (down 1.2%).

Meanwhile, the NSE Nifty closed lower by 247 points (down 1%).

Cipla, BPCL, and Sun Pharma were the top gainers today.

Asian paints, Grasim Industries, and JSW Steel, on the other hand, were among the top losers today.

The GIFT Nifty ended at 24,004 down by 250 points.

The BSE Mid Cap ended flat and the BSE Small Cap index ended 0.6% lower.

Barring the healthcare sector most sectoral indices are trading negatively with stocks in the banking sector, IT sector, and capital goods sector witnessing selling pressure.

The rupee is trading at 85.07 against the US$.

Gold prices for the latest contract on MCX are trading 0.6% lower at Rs 76,198 per 10 grams.

Meanwhile, silver prices are trading 2.1% lower at Rs 88,490 per 1 kg.

Here are five reasons why Indian Markets are falling today

#1 US Fed Factor

Despite the US Federal Reserve trimming its benchmark interest rate by 0.25% to 4.25-4.5% on 18 December line with market expectations rate cut outlook dampened market sentiment worldwide.

The Fed revised its rate reduction outlook, projecting only two more rate cuts of a quarter-percentage point by the end of 2025 as against the market's expectations of three or four rate cuts.

#2 FII Outflow

The sustained selling of Indian equities by foreign institutional investors (FIIs) has been a key reason behind the recent downturn in the Indian stock market.

FIIs have sold off Indian equities worth over Rs 80 bn in the last three sessions amid a strengthening dollar, rising bond yields, and the prospects of fewer rate cuts by the US Fed next year.

#3 Rupee Hits Record Low

The Indian rupee hit a historic low of 85.3 per dollar on Thursday, damaging market sentiment.

A weak rupee discourages foreign investors from investing in the Indian market.

#4 Macroeconomic headwinds

Fresh concerns have emerged over India's deteriorating macroeconomic picture, affecting market sentiment.

The country's trade deficit widened to an all-time high in November.

#5 Uncertainty over Earnings Recovery

After weak Q1 and Q2 earnings of Indian corporates, all eyes are on the December quarter (Q3) earnings. While experts expect earnings recovery, they hint that a decent recovery could be expected only from Q4.
 

Waaree Renewable Tech Board Approves Listing

The Board of Waaree Renewable Technologies Ltd, a subsidiary of Waaree Energies, has given the green light for the listing of its equity shares on the National Stock Exchange (NSE).

The company's shares are already listed on the BSE.

The Board also approved the postal ballot notice to seek shareholders' approval for related party transactions with Waaree Forever Energies Private Limited, which is a subsidiary of Waaree Energies Limited (Parent Company).
 

SpiceJet Gains nearly 7%. Here's Why

In news from the airline sector, shares of SpiceJet were trading around 7% higher on 19 December, after the company reported in an exchange filing that it had reached an amicable settlement with Genesis, a commercial airline leasing company.

This announcement resolves a US$ 16 million dispute between both parties.

As per the agreement, SpiceJet will pay Genesis US$ 6 million and Genesis will acquire US$ 4 million in SpiceJet equity at a price of Rs 100 per share.

The stock has gained around 9% over the last one month.

The company added in the release that subject to the settlement terms being satisfied, both parties have agreed to withdraw all ongoing litigations and disputes related to this matter at the appropriate forums.

Over the last two months, the domestic aviation player has settled disputes including Aircastle (Ireland) & Wilmington Trust SP Services and Shannon Engine Support.

Why DOMS Industries Share Price is Falling

Moving on, shares of DOMS Industries, a stationery and art supply company, are lower by nearly 4% in early trade on 19 December as FILA said it is selling up to 4.6% stake in the company after the one-year lock-in for shareholders ended.

Italian stationery maker FILA initiated the sale of shares in its Indian unit DOMS, through an accelerated book building (ABB) process on Wednesday, reducing its holding from 30.6% to 26%.

The base size of the block trade is Rs 5.1 bn, with an option to upsize by Rs 2.5 bn, totaling up to Rs 7.6 bn.

The Italian company had listed its unit in India last December, and since the start of the year, shares of DOMS Industries have notched up a gain of about 130%.

DOMS has plans to increase its presence to more countries and is in discussion with FILA subsidiaries, with plans to launch products through FILA subsidiaries in new geographies from the beginning of the next fiscal.

With strong domestic growth, DOMS said in November that it would like to maintain a balance of about 15-20% of business coming from exports.

The company recently completed the acquisition of a controlling stake in Uniclan Healthcare, a company engaged in the manufacturing and marketing of diapers and baby wipes.
 

Nifty IT Stocks Tumble

Technology stocks were among the biggest losers in the morning session on 19 December, as the commentary coming from the US Federal Reserve turned more hawkish than previously expected.

The top losers on the index were LTIMindtree, Wipro and L&T Technology Services, which were down by 2-4% respectively.

Since the domestic information technology sector is heavily reliant on services exports, a higher interest rate regime in the US sends bond yields spiking and strengthens the dollar, increasing the cost of IT services for US clients and potentially dampening demand.

Also, tighter monetary policy could slow economic growth in key markets like the US, therefore reducing discretionary IT spending by businesses. Together, this mutes the sentiment for Indian firms' IT services.

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