Sensex Dips, Nifty Steady Amid Volatility; Midcaps and Smallcaps Show Gains – Share Market Live Updates

Sensex Dips, Nifty Steady Amid Volatility; Midcaps and Smallcaps Show Gains – Share Market Live Updates

VoM News Desk | January 1, 2024 | 11:16 AM IST | Breaking News | Follow on Google News

Sensex Dips, Nifty Steady Amid Volatility; Midcaps and Smallcaps Show Gains – Share Market Live Updates

Sensex Dips, Nifty Steady Amid Volatility; Midcaps and Smallcaps Show Gains – Share Market Live Updates

India’s Nifty 50 and Sensex, having surged 20% in 2023, faced downward pressure in the year’s opening session.

Factors contributing to the growth included consistent domestic investments, renewed foreign interest, robust local economic expansion, positive corporate earnings, and a promising global interest rate scenario.

The S&P 500 and Nasdaq 100 experienced impressive 24% and historic gains, respectively, propelled by the AI surge and FOMO (fear of missing out). Notably, chipmakers, led by industry giants Nvidia Corp. and Advanced Micro Devices Inc., saw their most significant annual rise in over ten years.

Throughout the year, challenges arose, such as the US banking crisis, oil supply concerns from the Israel-Hamas conflict, and apprehensions over potential economic downturn due to stringent Federal Reserve policies.The year concluded with a remarkable rally, spurred by declining interest rates and the Fed hinting at potential rate cuts in 2024 after a series of hikes to stabilize inflation toward the 2% target.Market speculations now anticipate the commencement of US rate cuts in March, a stark contrast to earlier presumptions.

Additionally, traders are factoring in over 150 basis points of easing in the upcoming year from the US Federal Reserve, the European Central Bank, and the Bank of England.

Despite initial optimism following Beijing’s decision to end its zero-COVID policy, Chinese markets faltered. Both Hong Kong’s Hang Seng Index and China’s onshore blue-chip index declined by over 10%, reflecting dwindling investor confidence in the world’s second-largest economy.

Conversely, Japan’s Nikkei 225 Index saw a substantial 28% gain during the same period.

VoM News Desk

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