Mumbai: Equity markets fell sharply Thursday, with the Sensex tumbling 592.67 points and the Nifty declining to 25,877.85 level, as fresh foreign fund outflows and no clarity on the future course of rate action by the US Federal Reserve dampened investors’ sentiment.
The 30-share BSE Sensex tanked 592.67 points or 0.70 per cent to settle at 84,404.46. During the day, it dropped 684.48 points or 0.80 per cent to 84,312.65.
The 50-share NSE Nifty tumbled 176.05 points or 0.68 per cent to 25,877.85.
From the Sensex firms, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, Bajaj Finance and Reliance Industries were among the major laggards.
However, Larsen & Toubro, Bharat Electronics, UltraTech Cement and Maruti were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,540.16 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs) bought equities worth Rs 5,692.81 crore in the previous trade.
“As expected, the US Fed cut interest rates by 25 bps. However, the market consolidated after Chair Jerome Powell indicated that this might be the last rate cut of 2025, tempering hopes of further monetary easing. The resulting strength in the US dollar contributed to a risk-off sentiment across emerging markets, including India,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled lower while South Korea’s Kospi and Japan’s Nikkei 225 index ended in the positive territory.
Markets in Europe were trading lower. US markets ended on a mixed note Wednesday.
“Markets witnessed broad-based selling Thursday as uncertainty over the US Federal Reserve’s future rate cut trajectory outweighed earlier optimism, dampening global risk sentiment and prompting investors to turn cautious. FIIs continued to book profits, while DIIs extended selective buying support, helping cushion the market from a deeper decline,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Global oil benchmark Brent crude dipped 0.59 per cent to USD 64.54 a barrel.
On Wednesday, the Sensex climbed 368.97 points or 0.44 per cent to settle at 84,997.13. The Nifty went up by 117.70 points or 0.45 per cent to 26,053.90.
PTI
