Tue Dec 17 11:30:00 UTC 2024: **Indian Markets Plunge Amidst Rate Cut Expectations and Widening Trade Deficit**

**Mumbai, India (December 17, 2024)** – Indian stock markets experienced a significant downturn today, with the S&P BSE SENSEX closing at 80,684.45, a 1.30% decrease or 1,064.12 points. The NIFTY50 index also fell, settling at 24,336, down 1.35% (332.25 points). This sharp decline comes despite expectations of a quarter-point rate cut by the central bank.

The sell-off was driven by several factors. A widening trade deficit, reaching $37.84 billion in November due to a 4.85% drop in exports ($32.11 billion) and a 27% surge in imports ($69.95 billion), significantly dampened investor sentiment. Furthermore, the market is anticipating a scaling back of the central bank’s easing policies in 2025, fueled by concerns of rising inflation under the Trump administration.

HDFC Bank’s performance significantly impacted the SENSEX, falling 1.71% after receiving a second warning letter from SEBI regarding regulatory compliance. Reliance Industries also contributed to the downturn, shedding 1.8% and experiencing a year-to-date decline of over 3%.

Nearly all stocks in the NIFTY50 (48 out of 50) and all 30 stocks in the SENSEX ended the day in negative territory. MidCap and SmallCap indices also experienced declines of 0.65% and 0.52% respectively. The telecom sector was particularly hard hit, with its index falling 2.18%.

Market breadth favored declines, with 2,442 stocks falling against 1,576 advancing on the BSE. While 278 stocks hit 52-week highs, 28 reached their 52-week lows.

This report concludes with disclaimers regarding investment risks and regulatory information from Upstox Securities.

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