Indian markets join global sell-off after US Fed hints at further rate cuts; Sensex fell below 80 thousand Business News

The equity benchmark Sensex on Thursday crashed nearly 965 points below the 80,000 level on heavy selling in global equities after the US Federal Reserve signaled fewer rate cuts next year.

Besides, deep losses in consumer durables, banking and IT stocks added to the disappointment amid foreign fund outflows, analysts said.

In a fourth day of declines, BSE’s 30-share benchmark Sensex settled down 964.15 points, or 1.20 percent, at 79,218.05. During the day, the blue-chip index cracked 1,162.12 points or 1.44 percent to 79,020.08.

The NSE Nifty sank 247.15 points, or 1.02 per cent, down 24,000 points to 23,951.70.

“The There has been a massive decline in the Indian market After a global sell-off driven by the US Fed’s hawkish stance on interest rates. Interest rate sensitive sectors such as banking and real estate were significantly affected.

“However, the BoJ’s decision to keep its interest rates steady, which surprised economists, helped ease the selling pressure. Despite this, investor caution remained amid FII selling, evidenced by their outperformance, with a strategic shift to defensive sectors like pharma,” Jiojit said. Vinod Nair, head of research at Financial Services said.

Out of the 30 blue-chip pack, Infosys, Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance Industries, Tata Consultancy Services, Infosys, Tata Motors and Mahindra & Mahindra were the last.

On the other hand, Sun Pharma, Power Grid and Hindustan Unilever rose.

In the Asian market, the prices of Seoul, Tokyo, Shanghai and Hong Kong have decreased. European markets traded in negative territory. Wall Street ended sharply lower on Wednesday.

Foreign institutional investors (FIIs) on Wednesday offloaded equity worth Rs 1,316.81 crore, according to exchange data.

Global oil benchmark Brent crude fell 0.08 percent to $73.33 a barrel.

The BSE benchmark Sensex fell 502.25 points, or 0.62 percent, to settle at 80,182.20, taking its third day of losses on Wednesday. The Nifty closed down 137.15 points, or 0.56 per cent, at 24,198.85.

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