The Indian benchmark indices Sensex and Nifty declined sharply on Thursday as the Sensex closed at a little over 84,400 falling nearly 600 points and the Nifty ended at 25,877.85, tumbling more than 170 points.
During early morning trade today, the domestic indices had also opened on a muted note with the Sensex starting trade at 84,769.62, falling more than 200 points, while the Nifty tested 26,000 falling nearly 50 points at 9:15 AM.
Why Are Markets Crashing?
Benchmark indices Sensex and Nifty tanked on Thursday backed by the US Federal Reserve interest rates cut.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, “US markets ended on a mixed note on Wednesday. The Fed decision to cut rates by 25 bps came as expected and, therefore, it didn’t impact the market even though there is no clarity on the future course of rate action. The market will now focus more on the outcome of the Trump-Xi summit in South Korea.”
“Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,540.16 crore on Wednesday, according to exchange data. FIIs turned net sellers in yesterday’s otherwise positive session. Wall Street’s overnight pause added to the cautious tone, with the Dow slipping after briefly crossing 48,000, while Fed Chair Jerome Powell’s remarks pushing back expectations of a December rate cut further dampened sentiment,” Prashanth Tapse, Senior VP (Research), Mehta Ltd, said.
