Mumbai: The BSE Sensex experienced a sharp pullback on December 5, 2024, falling 300 points from its intra-day peak, as volatility continued to dominate market sentiment. After a strong start, the benchmark index saw a significant correction in the afternoon, largely driven by profit-taking and global uncertainties.
The Sensex had surged earlier in the day, riding high on positive cues from global markets, but investor caution set in as the day progressed. Despite the dip, the broader market performed better, with mid-cap and small-cap stocks gaining significant ground, outperforming their larger counterparts. These segments saw fresh buying interest, with investors focusing on growth potential in smaller companies.
Banking stocks, which have been volatile lately, experienced a notable rally. Leading private and public sector banks saw sharp gains, with State Bank of India and HDFC Bank registering substantial increases. The rally in banking stocks was attributed to optimism over continued economic recovery and expectations of favorable monetary policy cues.
Market participants pointed to concerns over global economic conditions and potential interest rate hikes as factors behind the volatility. However, the strong performance of mid and small-cap stocks indicated a positive outlook among investors for the broader market despite short-term fluctuations.
Analysts suggest that the market could continue to see ups and downs in the coming days, with volatility likely to remain high as investors monitor global economic trends and corporate earnings reports.
As of the closing bell, the Sensex ended the day lower by 0.5%, while the Nifty index also followed suit with a modest decline. However, the resilience of the mid and small-cap stocks gave investors hope for continued growth in the broader market.