As per report indian equity markets witnessed a sharp decline on thursday as benchmark indices Sensex and Nifty tumbled, mirroring weak global cues following the US Federal Reserve’s hawkish stance on rate cuts. The BSE Sensex plunged 1,162.12 points to 79,020.08 in early trade, while the NSE Nifty fell by 328.55 points to 23,870.30. By 11 a.m., the Sensex had pared some losses but was still down nearly 1,000 points, trading at 79,242.65, and the Nifty was 1% lower at 23,946.30. Market capitalization eroded by approximately Rs 3.76 lakh crore during the first half of the session.
Perhaps at 9:15 a.m., the Sensex was down 717.57 points (0.89%) at 79,464.63, and the Nifty declined by 217.10 points (0.90%) to 23,981.75. Almost all sectoral indices were in the red, with steep declines in Nifty IT, Nifty Auto, and bank Nifty, which fell nearly 2%. The only outlier was Nifty Pharma, trading up by 1%. v K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said “Even though the rate cut of 25 bps was in tune with the market’s expectation, the indication of only two cuts of 25 bps each in 2025 against market expectation of three or even four cuts spooked the market resulting in a sharp sell-off in Wall Street.
Moreover the sharp market sell-off on thursday reflects a combination of global and domestic factors, including a hawkish stance from the US Federal Reserve, sustained FII selling, and a weakening rupee. These elements have triggered a wave of investor caution, eroding market capitalization by trillions.
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