Stock market today: BSE Sensex and the Nifty 50, the Indian equity benchmark index, after opening trade on Thursday US Federal ReserveWhile the BSE Sensex fell below 80,000, Nifty50 fell below 24,000. At 9:17 am, the BSE Sensex was trading down 894 points, or 1.12 percent, at 79,287.77. The Nifty 50 was down 282 points or 1.16 percent at 23,917.00.
The Indian market is seeing a decline in the early holiday season rally, with the impact of a stronger dollar stronger in India than in developed markets. Today’s trade will be influenced by the latest decision of the US Federal Reserve.
“Market sentiment remains cautious ahead of potential policy and tariff changes by the incoming US administration. This caution is further influenced by India’s premium valuation, which is significantly above the recent earnings growth trajectory that has slowed down in the last two quarters,” said Vinod Nair. , Head of Research, Geojet Financial Services.
The US index recorded a significant loss after the US Federal Reserve’s rate cut decision. All three major indexes recorded their biggest one-day losses in months. This follows the Federal Reserve’s decision to cut interest rates by 0.25%, while their forward-looking projections indicate a more conservative approach to rate cuts in the coming year.
Asian equities were lower on Thursday after US markets suffered substantial losses, after the Federal Reserve downgraded expectations for an interest rate cut next year.
The dollar hit a two-year high on Thursday after the Federal Reserve signaled a rate cut in 2025. Meanwhile, the yen fell to its lowest level in a month ahead of the Bank of Japan’s (BOJ) policy announcement later in the day.
Gold prices fell to their lowest levels in a month on Thursday after the US Federal Reserve proposed easing monetary policy for next year to strengthen both the dollar and Treasury yields.
Foreign portfolio investors moved to a net selling position with outflows of Rs 1,316 crore on Wednesday. Domestic institutional investors offloaded equity worth Rs 4084 crore.
The net short position of foreign institutional investors increased to Rs 1.01 lakh crore on Wednesday from Rs 91,098 crore on Tuesday.