Sensex Drops 964 Points Following US Federal Reserve's Aggressive Rate Cut Outlook
Click to start listening
Mumbai, December 19 (NationPress) The Indian equity markets experienced a downturn on Thursday, closing in the red due to unfavorable global cues following the US Federal Reserve’s hawkish stance regarding interest rate cuts. The Fed's FOMC has slashed the expected number of rate cuts for 2025 in its efforts towards achieving maximum employment and price stability.
The Sensex concluded at 79,218.05, declining by 964.15 points, or 1.20 percent, while the Nifty finished at 23,951.70, down by 247.15 points, or 1.02 percent.
Market analysts noted a widespread downturn in the Indian market, prompted by a global sell-off linked to the US Fed's hawkish outlook on interest rates. Sectors that are highly sensitive to interest rates, such as banking and real estate, were notably affected.
“Nevertheless, the Bank of Japan’s unexpected decision to maintain its interest rate helped ease some of the selling pressure. Despite this, caution among investors persisted due to ongoing FII selling, leading to a strategic focus on defensive sectors like pharmaceuticals, which showed better performance,” commented an expert.
The Nifty Bank index closed at 51,575.70, dropping by 563.85 points, or 1.08 percent. The Nifty Midcap 100 index ended at 58,556.25, down by 167 points, or 0.28 percent.
The Nifty Smallcap 100 index concluded at 19,133.10, declining by 97.25 points, or 0.51 percent.
On the Bombay Stock Exchange (BSE), 1,684 shares closed in the green, while 2,309 shares ended in the red, with 102 shares remaining unchanged.
Sector-wise, significant selling pressure was evident in the IT, metal, and energy sectors of the Nifty at the close of trading. Conversely, buying activity was observed in the pharma and healthcare sectors.
Within the Sensex group, the biggest losers included Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance, TCS, Infosys, Tata Motors, and M&M. In contrast, Sun Pharma, Hindustan Unilever, and Power Grid emerged as the top gainers.
