Indian Markets Tumble as Fed Chair's Comments Spark Uncertainty
Indian stock markets experienced a significant downturn on Thursday, with the Sensex falling 592.67 points (0.70%) to close at 84,404.46 and the Nifty 50 dropping 176.05 points (0.68%) to 25,877.85. The decline was broad-based, affecting multiple sectors including healthcare, financials, and pharma. The sell-off was primarily triggered by hawkish comments from U.S. Federal Reserve Chair Jerome Powell, indicating uncertainty about future rate cuts. Foreign institutional investors continued their selling activity, further pressuring the market. Amidst the equity market turbulence, gold showed resilience, rising 0.38% to 121,130 per 10 grams.
*this image is generated using AI for illustrative purposes only.
Indian stock markets experienced a significant downturn on Thursday, reacting to hawkish comments from U.S. Federal Reserve Chair Jerome Powell. The decline was broad-based, affecting multiple sectors and leaving investors cautious about future rate cuts.
Market Performance
The benchmark indices closed notably lower:
| Index | Change (points) | Change (%) | Closing Value |
|---|---|---|---|
| Sensex | -592.67 | -0.70 | 84,404.46 |
| Nifty 50 | -176.05 | -0.68 | 25,877.85 |
The selling pressure was widespread, with 2,291 stocks declining against 1,876 advances on the BSE.
Sector-wise Impact
Several key sectors felt the heat of the market downturn:
| Sector | Performance |
|---|---|
| Healthcare | -0.70 |
| Financials | -0.70 |
| Pharma | -0.70 |
| Nifty Bank | -0.61 |
| Financial Services | -0.77 |
Top Movers
Notable stock movements included:
| Company | Change (%) |
|---|---|
| Dr Reddy's Laboratories | -3.79 |
| Cipla | -2.54 |
| HDFC Life | -2.01 |
| Coal India | +1.58 |
| Hindalco | +0.79 |
Market Drivers
The primary catalyst for the market decline was Fed Chair Jerome Powell's commentary, which indicated uncertainty regarding further rate cuts. This came despite the Fed delivering an expected 25 basis point rate cut.
Adding to the downward pressure, foreign institutional investors continued their selling activity in the Indian markets.
Gold Market
Amidst the equity market turbulence, gold showed resilience:
| Commodity | Price (per 10 grams) | Change (%) |
|---|---|---|
| Gold | 121,130 | +0.38 |
Looking Ahead
Market participants are closely monitoring the upcoming meeting between U.S. President Trump and Chinese President Xi in South Korea. The outcome of this meeting could potentially impact global trade sentiment and, consequently, market dynamics.
Investors are advised to stay vigilant and monitor these developments, as they could significantly influence market trends in the coming days.
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