The Indian stock market began Thursday's session on a significantly bearish note, mirroring global market trends. The Nifty index opened below the crucial 24,000 level at 23,877.15, while Sensex plunged by over 900 points in early trading. This sharp decline in the Indian market was largely driven by weak global cues, following a dramatic sell-off in international stock markets.
On the Nifty 50 index, the day saw a clear divide, with Dr Reddy's Laboratories and Tata Consumer Products leading the gains. In contrast, Wipro, Hindalco, Shriram Finance, Asian Paints, and ONGC emerged as the top losers, reflecting the widespread negative sentiment in the market.
The global backdrop for the market turmoil stemmed from the US Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday. While this move was intended to stimulate the economy, it led to a sharp market reaction in both the US and Asia. On December 18, after the Federal Open Market Committee (FOMC) led by Jerome Powell announced the rate cut, US stock markets experienced a massive sell-off. The Dow Jones Industrial Average plunged more than 1,200 points, marking its worst losing streak since 1974. Additionally, the Nasdaq Composite fell by over 3.5%, and the S&P 500 dropped by 1.5%.
The ripple effects of this chaos in the US stock market spread to Asia, with major indices like the Nikkei, Kospi, and Hang Seng all witnessing a 1% decline in early trading today. This global sell-off fueled panic in Asian markets, contributing to the bearish sentiment in the Indian stock market. As a result, investors have been on edge, leading to widespread losses across sectors in India.
