Santa skips D-Street during second-quietest December in a decade

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Subscribe to enjoy similar stories. Santa's sleigh seems to have taken a detour this year, leaving behind a subdued holiday market instead of presents. After falling 1.7% so far, December seems poised to clock the second-worst returns in a decade, next only to the near-4% fall in December 2022.

If market closes around these levels, it would also mark the fifth time in the last 10 years that the Sensex has posted negative returns in December. In contrast, last year, markets saw an impressive return of 7.8% during the holiday month. Despite the downturn, experts said this market dip presents an opportunity for savvy investors.

Deven Choksey, managing director of DRChoksey FinServ Pvt. Ltd., attributed the December drop to profit-booking, a shift in sector preferences toward IPOs, and a pullback of foreign portfolio investors (FPIs) in anticipation of a stronger dollar and a weaker rupee. “Large-cap stocks were sold off to fund investments in IPO-related opportunities for better returns," Choksey explained.

“I believe growth concerns are overblown, and see this as a buying opportunity." Deepak Jasani, head of retail research at HDFC Securities, concurred, citing FPI net selling driven by year-end considerations and disappointing macro data, particularly weak corporate earnings. “Much of the FPI inflow has been diverted to the primary market, putting additional pressure on the secondary market," he added. Also read Indian stock markets review 2024: A tale of two halves Despite December's turbulence, analysts remain optimistic about the market's long-term outlook.