India’s benchmark indices opened sharply lower on Thursday, mirroring a global sell-off after the US Federal Reserve signaled fewer rate cuts for 2025.
The Nifty 50 index plunged 1.33%, shedding 321 points to open at 23,877.15, while the BSE Sensex dropped 1.44%, falling 1,153.17 points to open at 79,029.03.
The downturn comes as investors reacted to the Fed’s reduced rate cut expectations, which dashed hopes of robust economic stimulus and easing inflation. The ripple effect triggered sharp declines across global markets.
Ajay Bagga, a banking and market expert, said, “Risk-off sentiment is hitting all markets today. The Fed’s revised projections for 2025 have led to a steep sell-off in US equities, precious metals like gold and silver, emerging market currencies against the US dollar, and rising bond yields. Asian markets, including India, are facing similar sell-offs, leading to a gap-down opening on weak global cues.”
Sectoral indices on the NSE faced broad declines, with Nifty IT, Nifty Metal, and Nifty PSU Bank suffering the steepest losses.
Akshay Chinchalkar, Head of Research at Axis Securities, said, “The Nifty is opening weak, with critical support at 24,000. A breach below the November 28 trough of 23,873 would invalidate the bullish head-and-shoulders pattern targeting 25,500. If that happens, the next vulnerable level will be 23,300. Immediate resistance is at 24,500.”
In the Nifty 50, only three stocks—Dr. Reddy’s, Hindustan Unilever, and ITC—managed gains, while 47 stocks declined at the time of reporting.
The sell-off extended to other Asian markets, with Japan’s Nikkei 225 down 0.96%, Hong Kong’s Hang Seng Index losing 1.06%, South Korea’s Kospi declining 1.58%, and Taiwan’s Weighted Index falling 1.35%.
US markets also faced a sharp downturn after the Fed announcement. The S&P 500 fell 2.95%, losing 178 points to close at 5,872. The tech-heavy Nasdaq dropped 3.28%, shedding 658 points to settle at 19,450.
(Inputs from ANI)