Following the US Federal Reserve’s indication of fewer rate cuts next year, Indian stock markets saw a significant decline in early Thursday trading. Early trading saw a sharp decline in the main indices, the Sensex and Nifty, with all 30 of the BSE and NSE’s blue-chip companies falling into the red.
The 30-share BSE benchmark Sensex fell 880 points to 79,301 as of 10.30 am, and the NSE Nifty fell 269 points to 23,969. For the first time in five weeks, both indices have dropped more than 3% this week.
Stock market crash: Top losers today
All 13 major subsectors along with more domestically focused smallcaps and midcaps retreated in early trade. All 30 blue-chip stocks were trading lower.
The stocks which took the biggest hit on Thursday are:
• Asian Paints
• Bajaj Finance
• Bajaj Finserv
• Kotak Bank
• JSW Steel
• Infosys
• Mahindra and Mahindra
• Tech Mahindra
• HDFC Bank
• ICICI Bank
Sharp sell-off after Fed rate announcement
After the US Federal Reserve indicated fewer interest rate reduction in 2025, global market weakness set off the steep sell-off. Although the Fed had been largely expected to reduce interest rates by 25 basis points, its prediction of only two additional quarter-percentage-point rate cuts in the upcoming year was more cautious than initially anticipated. Citing ongoing inflation and the strong US economy, the central bank’s forecast indicated a more cautious stance than investors had hoped for.
Since they increase foreign inflows, rate cuts in the US usually benefit emerging market assets like Indian stocks.
Ajay Bagga, Banking and Market Expert told media 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 led to 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”.
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