Mumbai (Maharshtra) [India], December 19 (ANI): Indian stock markets tanked sharply on Thursday following the promoting stress in main markets across the globe after the US Fed confirmed indicators of fewer fee cuts subsequent yr.
The Nifty 50 index tanked greater than 1.33 % or 321 factors to open at 23,877.15 factors, whereas the BSE Sensex was down by 1,153.17 factors or 1.44 % to open at 79,029.03 factors.
The main purpose for the sharp promoting stress within the opening session is the discount within the fee minimize cycles by the US Federal Reserve, which was earlier anticipated to implement extra fee cuts this yr. This led to a fall in main markets globally as the speed cuts have been anticipated to spice up the economic system and present indicators of reducing inflation.
Ajay Bagga, Banking and Market Expert advised ANI that “Risk off is hitting all markets today as the Fed projections of rate cuts for 2025 led to a steep sell off in US stocks, Gold, Silver, EM currencies vs the US Dollar and led to bond yields in the US going up. Asian markets are seeing the same sell off today and Indian markets are pointing to a gap down opening due to the weak global cues”.
All the sectoral indices have been dominated by the bear gang on NSE as all sectors declined sharply quickly after the opening session. The highest promoting stress was witnessed in Nifty IT, Nifty Metal, and Nifty PSU Bank.
“The Nifty is slated to open very weak. 24,000 is important support but should we gap down below it, the next critical level lies at the November 28 trough of 23873. Anything under this and the bullish head-and-shoulders pattern with a target of 25500 will have failed and the 23,300 lows will become vulnerable again. Immediate resistance lies at 24500” mentioned Akshay Chinchalkar, Head of Research, Axis Securities.
In the Nifty 50 listing, solely 3 shares gained whereas 47 declined on the time of submitting this report. The gainers embrace Dr. Reddy, Hindustan Unilever, and ITC.
The different Asian markets additionally adopted the downward development as all main indices have been buying and selling in pink on the time of submitting this report. Japan’s Nikkei 225 index was down by 0.96 %, Hong Kong’s Hang Seng index declined 1.06 %, South Korea’s market was additionally down by 1.58 %, and the Taiwan Weighted Index was in pink with a 1.35 % decline.
The US markets additionally declined sharply because the Fed fee minimize projections for 2025 led to the autumn in indices. The SP 500 plunged by 2.95 %, dropping 178 factors to shut at 5,872. Meanwhile, the tech-heavy Nasdaq dropped by 3.28 %, shedding 658 factors to settle at 19,450. (ANI)