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Stock market crash today: Sensex down by 1,010 points after US Fed rate cut decision
Stock market crash today: Infosys, SBI, Tata Steel, Asian Paints, JSW Steel, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra were the biggest laggards.
Stock market crash today: Equity benchmark indices Sensex and Nifty declined in early trade on Thursday.
At 9.30am, the 30-share BSE benchmark Sensex was down by 1,010 points to 79,171. The NSE Nifty dropped 302 points to 23,895.
All the 30 blue-chip stocks were trading lower. Infosys, State Bank of India, Tata Steel, Asian Paints, JSW Steel, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra were the biggest laggards. Check top losers
The decline comes after the US Federal Reserve slashed its benchmark interest rate by (25 bps) or a quarter of a percentage point to 4.25-4.50 per cent.
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said that when valuations are high the market needs only a trigger to correct sharply.
“This trigger was provided by the Fed guidance of fewer rate cuts in 2025, which went against market expectations. Even though the rate cut of 25 bps was in tune with the market’s expectation, the indication of only two cuts of 25 bps each in 2025 against market expectation of three or even four cuts spooked the market resulting in a sharp sell-off in Wall Street,” he said, according to PTI.
The Fed's caution pushed Wall Street equities sharply lower overnight and triggered a slide in Asian peers early on the day.
All three major indices finished firmly lower after the Fed projected just two interest rate cuts next year, down from four.
The Dow slid 2.6 per cent, or more than 1,100 points, to 42,326.87. The broad-based S&P 500 dropped 3.0 per cent to 5,872.16, while the tech-rich Nasdaq Composite Index slumped 3.6 per cent to 19,392.69.
Market yesterday
Stock market crash today: On Wednesday, the Sensex closed at 80,182.20 points, down 502.25 points or 0.62 per cent, while the Nifty ended at 24,198.85 points, declining by 137.15 points or 0.56 per cent.
As many as 2,563 stocks declined while 1,442 advanced and 94 remained unchanged on the BSE. The NSE Nifty declined 137.15 points or 0.56 per cent to 24,198.85.
In the Sensex pack, Tata Motors, Power Grid, NTPC, Adani Ports, JSW Steel, ICICI Bank, Larsen & Toubro and Bajaj Finance were the main laggards. However, Tata Consultancy Services, Reliance Industries, Tech Mahindra and HCL Technologies were the gainers.
The BSE smallcap index had also declined 0.76 per cent, and the midcap gauge dipped 0.61 per cent. Among sectoral indices, utilities tanked 2.06 per cent, power (1.78 per cent), capital goods (1.56 per cent), metal (1.44 per cent), industrials (1.30 per cent) and financial services (1.20 per cent).
