Stock Market Weekly Review: Nifty Crashes Amid Global Sell-Off

Markets recorded their biggest weekly decline in more than two years last week. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.

Weekly Recap

Wipeout

• Last week, the Nifty was in freefall, plummeting 4.8% amid a global sell-off following the US Fed's cautious remarks on future rate cuts. 
• This uncertainty triggered massive selling by Foreign Institutional Investors (FIIs). Consequently, the turmoil sent the India VIX fear gauge surging by 14% over the week.

What went so wrong?

• Global markets panicked in response to the Fed's hawkish remarks about the policy rate outlook for 2025, indicating fewer rate cuts than anticipated. 
• Despite the strong outlook for the US economy, investors worldwide overreacted by liquidating several equity positions.

The winners

• Despite the overall downturn, there were a few bright spots. The pharma sector offered some relief, soothing investor anxieties with decent returns. 
• Dr. Reddy’s Lab performed particularly well, soaring by 7.8% following a “buy” rating from Nomura, which cited the company’s strategic investments as a key factor.

The losers

• Shriram Finance emerged as the biggest loser last week, with its shares plunging around 9% despite launching a new vertical aimed at green finance, targeting Rs 5,000 crore in AUM over the next 3-4 years.
• Tata Motors also faced a rough week, dropping 8.4% amid high trading volumes. The company announced a price hike of up to 2% across its range of trucks and buses, effective from January 1, 2025.

Meanwhile…

• The US Department of Commerce revised its third-quarter GDP estimates upward, reflecting increases in exports and consumer spending. 
• Brokerages were optimistic about IT stocks last week, buoyed by Accenture's robust revenue growth in Q1. 
• The primary market saw the launch of eight mainboard IPOs. For an in-depth analysis of each, visit: IPO Corner on Liquide

Market Brief

Market Outlook

Our take

• With several stocks hovering around their 52-week lows and persistent macroeconomic headwinds, it appears that the markets may not be out of the woods just yet. 
• Consequently, we anticipate that the Nifty will continue its bearish trend next week, projecting a trading range between 23,000 and 23,850.

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