Indian stock markets tanked sharply on Thursday following the selling pressure in major markets around the globe after the US Fed showed signs of fewer rate cuts next year.
The Nifty 50 index tanked more than 1.33 percent or 321 points to open at 23,877.15 points, while the BSE Sensex was down by 1,153.17 points or 1.44 percent to open at 79,029.03 points.
The primary reason for the sharp selling pressure in the opening session is the reduction in the rate cut cycles by the US Federal Reserve, which was earlier expected to implement more rate cuts this year. This led to a fall in major markets globally as the rate cuts were expected to boost the economy and show signs of decreasing inflation.
Ajay Bagga, Banking and Market Expert, told 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”.
The bear gang on the NSE dominated all the sectoral indices as all sectors declined sharply soon after the opening session. The highest selling pressure 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,” said Akshay Chinchalkar, Head of Research, Axis Securities.
