Sensex ends 462.80 points down, Nifty below 11,000 because of these developments
Celebration for the investors short-lived as the stock markets across the world, including equity indices, fell heavily.
Celebration for the investors short-lived as the stock markets across the world, including equity indices, fell heavily after Federal Reserve Chairman Jerome Powell said the rate cut was not the beginning of a lengthy cutting cycle, and the latest round of trade talks wrapped up in Shanghai, with the US and Chinese negotiators leaving the table without a deal. Though both sides called the talks "constructive", that could not lift the market sentiment.
BSE's Sensex plunged below the 37,000 level, down 500 points, while the NSE's benchmark index Nifty plunged below 11,000 level. Sensex today hit the day's low of 36,694.18 points. At 3.17 pm, the BSE benchmark index recovered some ground and was at 37,099.63, a fall of 381.49 points or 1.02 percent.
At 1.25 pm, Nifty was at 10,974.65, 1.29 percent down from the previous day's close. Fed's comment came at a time when the economic activites were down and that led to the sell-off in the market. The US Federal Reserve's 25 bps interest rate cut did deliver on markets’ expectations on Wednesday.
At 1.37 pm, Sensex was at 37,030.25 points, a 450.87 points or 1.2 percent fall. Infratel, Powergrid, Wipro, Maruti Suzuki, and Bajaj Auto were the top gainers in Nifty, while Vedanta, Tata Motors, Hindalco, and JSW Steel were the to losers.
Asian shares fell to six-week lows on Thursday and the dollar rose after the US Federal Reserve delivered a 25-basis-point rate cut as expected but poured cold water on market expectations of a lengthy easing cycle, according to HDFC securities report.
"Technically, despite the Nifty rising on Wednesday, the trend remains down as long as the Nifty does not close above 11154 Further downsides are likely once the immediate support of 11072 is broken," said Deepak Jasani, Head Retail Research, HDFC securities.
India’s fiscal deficit in first quarter ended June hit 61.4 percent of the budgeted target for the current fiscal, government data showed on Wednesday. The deficit was 68.7 percent in the year-earlier period.
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