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Wall Street will have a half-day session on December 24, closing early at 1 p.m. (EST) ahead of Christmas, when the NYSE and Nasdaq will be closed. Motilal Oswal recommends an overweight strategy on banks and IT, with Zomato and ICICI Bank as top picks, while the market cap of the top 10 companies has shrunk by ₹4.95 lakh crore, heavily impacting TCS and Reliance. Zomato's stock has surged over 43% in six months, outperforming the Sensex, and is expected to remain in focus as market triggers like F&O expiry and global cues influence trends this week.
The Indian stock market experienced a significant downturn, with the Sensex closing at 78,041.59, down 1.49%, and the Nifty at 23,587.50, down 1.52%. All sectoral indices fell, particularly the realty index, which dropped by 4%, contributing to a market capitalization loss exceeding ₹19 lakh crore. This marked the largest decline in two years, with both Nifty and Sensex falling over 4%.
The S&P BSE Sensex plummeted nearly 1,000 points, hitting an intra-day low of 80,941.61, amid investor caution ahead of the US Federal Reserve's upcoming meeting. Key factors included a widening trade deficit of $37.8 billion and poor performance from heavyweight stocks like Reliance Industries and HDFC Bank. Despite the overall decline, midcap and smallcap stocks showed slightly better resilience, with only minor losses.
UBS has downgraded its target price for IndusInd Bank to ₹1,150 from ₹1,350, reflecting a neutral stance and a 5% cut in EPS for FY25/26. Similarly, Axis Bank and AU Small Finance Bank also saw target reductions. HDFC Bank, ICICI Bank, and Federal Bank remain top picks amid rising non-performing loan risks.Citi maintains a neutral call on Infosys with a target of ₹1,965, noting improvements in discretionary spending, particularly in the US financial services sector. Goldman Sachs favors Syngene and Neuland in the pharma sector while expressing caution on Divi’s, Gland, and Laurus.
The combined market valuation of six of the top-10 most-valued firms increased by Rs 2,03,116.81 crore last week, driven by gains from Tata Consultancy Services (TCS) and HDFC Bank. The BSE benchmark rose by 1,906.33 points, or 2.38%, while the NSE Nifty climbed 546.7 points, or 2.26%. TCS's market valuation surged by Rs 62,574.82 crore, reaching Rs 16,08,782.61 crore.
Sensex surged 809 points to 81,765.86, and Nifty climbed 240.95 points to 24,708.40, marking a seven-week high ahead of the RBI policy. IT and bank stocks led the rally, with Infosys and TCS each gaining over 3%. The broader market also thrived, with 2,144 stocks advancing.
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