Closing Bell: Sensex extends losing run to 4th day, drops 964 pts; Nifty below 24K; Bajaj twins down 2% each

 Indian benchmark equity indices Indian shares slid on Thursday, led by US-rate sensitive IT stocks, after the Federal Reserve indicated fewer interest rate cuts in 2025, sapping risk appetite and fanning worries of further foreign outflows from domestic stocks. The Sensex dropped over 900 points and the Nifty fell below the 24,000 mark.

Closing Bell: Sensex extends losing run to 4th day, drops 964 pts; Nifty below 24K; Bajaj twins down 2% eacch.

 


The US Federal Reserve implemented a 25-basis-point rate cut overnight, as anticipated, but its projection of just two quarter-point reductions in 2025 was below the three or four cuts that markets had expected.

Rise in bond yields and strong Dollar

The yield on the benchmark US 10-year notes reached a seven-month high of 4.524% on Wednesday, before settling at 4.514%.

Decline in global markets

US stocks ended lower on Wednesday, with the Dow Jones Industrial Average experiencing its worst day in more than four months. This decline followed the Federal Reserve's decision to lower its benchmark interest rate by 25 basis points to the 4.25-4.50% range, while also revising its forecast for fewer rate cuts in 2025.

HDFC Bank, Infosys, ICICI Bank, Reliance Industries, SBI, and HCL Tech collectively contributed to a 600-point drop in the Sensex. Axis Bank, M&M, Kotak Bank, and Bajaj Finance also added to the decline.

Comments

Post a Comment

Popular posts from this blog

Fed meeting and its effect on indian stock market

  The U.S. Federal Reserve’s monetary policy decisions significantly influence global financial markets, including India’s. Investors closely monitor these decisions, as they can affect capital flows, currency valuations, and overall market sentiment. Recent Developments: • Anticipated Rate Cut: The Federal Reserve is expected to announce a 25 basis point rate cut in its upcoming meeting, with a 95% probability assigned to this outcome. • Indian Market Reaction: In anticipation of the Fed’s decision, India’s benchmark indices have experienced declines. On December 17, 2024, the NSE Nifty 50 fell by 0.8% to 24,470.1 points, and the BSE Sensex dropped by 0.83% to 81,075.43 points. Sectors such as financials and energy, including major players like HDFC Bank and Reliance Industries, were notably impacted. Implications for the Indian Stock Market: • Foreign Investment Flows: Changes in U.S. interest rates can influence foreign institutional investments in emerging market...
Read more