Stock Market Today: Sensex Plummet Over 1,000 Points, Nifty Below 23,920
Domestic benchmarks Nifty 50 and Sensex opened sharply lower on Thursday, reflecting negative global sentiment after the US Federal Reserve reduced the key lending rate by 25 basis points
Stock Market Today: Domestic benchmarks Nifty 50 and Sensex fell sharply on Thursday during the early trade. The Sensex fell over 1,000 points, and the Nifty was below 23,910. Domestic benchmark indices opened sharply lower on Thursday, reflecting negative global sentiment after the US Federal Reserve reduced the key lending rate by 25 basis points. However, the Fed adopted a more hawkish stance on the monetary policy easing outlook for 2025.
The Sensex opened at 79,029.03, compared to its previous close of 80,182.20, and fell by 1,162 points, reaching 79,020.08. Likewise, the Nifty 50 opened at 23,877.15, down from its previous close of 24,198.85, and declined by 329 points to 23,870.30.
Global markets reacted negatively to the US central bank's decision, with major indices around the world trading sharply lower. Ahead of India's market opening, GIFT Nifty futures dropped by 300 points, signalling a volatile session and a likely gap-down start for domestic stocks.
All sectors are trading in the red, with the Nifty IT, Nifty Auto, and Bank Nifty indices taking the hardest hits, each dropping up to two per cent. The India VIX, a measure of market volatility, surged by 2.5 per cent to 14.74. Wipro, Hindalco, and Infosys were the top laggards on the Nifty 50, contributing heavily to the index's decline.
IT stocks experienced sharp sell-offs as investors rushed to liquidate their positions, dampened by the fading prospects of further rate cuts, which had previously supported the export-driven services sector.
Given the heightened uncertainty both globally and domestically, experts advise investors to adopt a stock-specific strategy.
"Market sentiment remains cautious ahead of potential policy and tariff shifts from the incoming US administration. This caution is further influenced by India's premium valuation, which is significantly above the current earnings growth trajectory that has slowed over the last two quarters," said Vinod Nair, Head of Research, Geojit Financial Services.
Meanwhile, US indices experienced substantial losses following the Federal Reserve's rate cut decision, with all three major indices recording their biggest single-day declines in months. This came after the Fed reduced interest rates by 0.25 per cent and signalled a more cautious stance on future rate cuts in the year ahead.
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