Indian stock indices fell sharply on Thursday, driven by a global sell-off sparked by the US Federal Reserve's revised rate cut projections for 2025. The Nifty 50 and BSE Sensex saw significant losses amid weak global cues.
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Indian stock markets plunged sharply on Thursday, following a global sell-off triggered by the US Federal Reserve’s decision to scale back its rate cut projections for 2025. The Nifty 50 index dropped over 1.33 per cent, or 321 points, opening at 23,877.15, while the BSE Sensex plummeted by 1,153.17 points, or 1.44 per cent, to start at 79,029.03.
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The significant fall in Indian markets was driven by the global reaction to the US Federal Reserve's altered stance on interest rates. Previously, the market had anticipated more aggressive rate cuts in 2025, which were expected to stimulate economic growth and address inflation. However, the Fed’s more cautious approach has led to a ripple effect across international markets, creating a wave of selling pressure.
Ajay Bagga, a banking and market expert, explained to ANI that "Risk off is hitting all markets today as the Fed projections of rate cuts for 2025 led to a steep sell-off in US stocks, Gold, Silver, EM currencies vs the US Dollar, and bond yields in the US going up. Asian markets are seeing the same sell-off today, and Indian markets are pointing to a gap-down opening due to the weak global cues."
Sectoral indices across the National Stock Exchange (NSE) reflected the bearish sentiment, with all major sectors declining sharply at the start of trading. The biggest losses were seen in the Nifty IT, Nifty Metal, and Nifty PSU Bank indices.
According to Akshay Chinchalkar, Head of Research at Axis Securities, "The Nifty is slated to open very weak. 24,000 is important support, but should we gap down below it, the next critical level lies at the November 28 trough of 23,873. Anything under this and the bullish head-and-shoulders pattern with a target of 25,500 will have failed, and the 23,300 lows will become vulnerable again. Immediate resistance lies at 24,500."
As of the latest updates, only three stocks in the Nifty 50 index were in the green, with Dr. Reddy’s, Hindustan Unilever, and ITC being the lone gainers. In contrast, 47 stocks saw declines, underscoring the widespread selling pressure.
Other Asian markets followed the same downward trajectory, with Japan's Nikkei 225 index falling by 0.96 per cent, Hong Kong’s Hang Seng index dropping 1.06 per cent, South Korea’s market retreating by 1.58 per cent, and Taiwan’s Weighted Index losing 1.35 per cent.
The US stock markets also saw significant losses after the Fed’s projections. The S&P 500 dropped 2.95 per cent, shedding 178 points to close at 5,872, while the tech-heavy Nasdaq lost 3.28 per cent, falling by 658 points to end at 19,450.
AS PER ANI, the reduced rate cut expectations from the Federal Reserve have triggered a broad-based sell-off, dampening investor sentiment worldwide. This trend is expected to continue as markets adjust to the more cautious outlook for the global economy in 2025.
(With inputs from ANI)
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