3 days Ago
Sensex, Nifty today: Benchmark indices Sensex and Nifty fell sharply on Thursday morning, in line with Asian peers, after the US Federal Reserve cut the interest rate by 25 basis points for the third straight time, but said it would be cautious about further rate cuts. A rate cut was already priced in by markets globally and the Fed commentary dashed hopes of a Santa rally ahead. Th BSE Sensex tanked 1,153.
17 points or 1.44 per cent to 79,029.03.
Nifty stood at 23,985.75, down 213.10 points or 0.
88 per cent. This was the fourth day of slide for the benchmark indices. Wipro fell 2.
64 per cent to Rs 304.35 and was the worst Nifty performer. Shriram Finance, Asian Paints, Hindalco, ONGC, Infosys, Tata Steel fell over 2 per cent each.
Bharat Electronics Ltd, SBI and Coal India fell 1.7-2 per cent. There are fears that the rise in dollar and US bond yields, coupled with weak data at home, may drag the rupee lower against dollar, which may trigger foreign outflows.
The dollar index, which tracks the movement of dollar against a basket of six major world currencies, hit 108 level. The 10-year US bond yield edged higher to 4.5 per cent.
Data showed FPIs were net seller to the tune of Rs 1,316.81 on Wednesday. "Overall, as of end-November, EM funds (based on our sample set) remain underweight (UW) on EM Asia (barring the smaller Indonesia and slight OW on Korea).
EM funds continue to have an UW on India and HK/China equities," Nomura said. V K Vijayakumar of Geojit Financial Services said when valuations are high, the market needs only a single trigger to correct sharply. "This trigger was provided by the Fed guidance of fewer rate cuts in 2025, which went against market expectations.
Even though the rate cut of 25 bps was in tune with the market’s expectation, the indication of only two cuts of 25 bp each in 2025 against market expectation of three or even four cuts spooked the market resulting in a sharp sell-off in Wall Street," V K Vijayakumar said. V K Vijayakumar noted that the Fed chief’s comments regarding the economy and the labour market were, in fact, positive, suggesting a resilient US economy. But always the market gets spooked when the reality falls short of expectations.
The FOMC policy rate now stands in the range of 4.25-4.50 per cent.
The central bank's new projections showed policymakers see it ending 2025 in the 3.75-4 per cent range. Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated, the Fed policy statement read.
The committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective, the Fed statement suggested. "In assessing the appropriate stance of monetary policy, the committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," it said.
Dow Jones tanked 1,123.03 points or 2.6 per cent to 42,326.
87, the Nasdaq tumbled 716.37 points or 3.6 per cent to 19,392.
69 and the S&P 500 plunged 178.45 points or 3.0 per cent to 5,872.
16. This may shun hopes of a Santa rally in the last two weeks of the month. "Momentum suggests that the psychological level of 24,000, followed by 23,900, which aligns with the 200-day SMA and the 61.
8 per cent Fibonacci retracement of the recent rally, will act as key support levels for Nifty on the weekly expiry day," said Rajesh Bhosale, Technical Analyst at Angel One. Nomura had expected the dot plot and Powell’s press conference to be hawkish, emphasizing that the pace of rate cuts is likely to slow in 2025. It panned out, with Asian markets across Japan, China and Korea falling up to 1.
2 per cent..
