Sensex, Nifty Slide Amid Fed-Induced Global Selloff
The Indian stock market declined sharply on Thursday, with the Sensex falling 523 points (0.7%) to 72,761 and the Nifty 50 dropping 137 points (0.7%) to 22,055. The sell-off followed the U.S. Federal Reserve’s cautious stance on interest rate cuts, sparking a risk-averse mood across global markets.
Why Did Markets Fall? Fed’s Hawkish Policy Stance
The Fed held rates steady but projected fewer cuts in 2024, citing persistent inflation. Chair Jerome Powell’s remarks dampened hopes of early monetary easing, triggering a global market slump:
– Asian markets: Nikkei, Hang Seng down over 1%
– FIIs net sellers: Offloaded ₹3,929 crore in Indian equities
Sectoral Impact: Banking, IT, Auto Stocks Hit Hard
- Banking: Nifty Bank fell 1.1% (HDFC Bank, ICICI Bank drag)
- IT: Infosys, TCS down 1-2% on stronger dollar, weak US demand outlook
- Auto: Tata Motors, Maruti Suzuki slipped 1-3% amid rising costs
Domestic Concerns Add to Pressure
- Election uncertainty weighs on sentiment
- Crude oil near $85/barrel raises inflation fears
- Mid & small-caps underperform: Nifty Midcap 100 (-1.3%), Smallcap 100 (-1.8%)
Expert Outlook: Correction or Buying Chance?
- Short-term: Volatility likely until Fed clarity emerges
- Long-term: Analysts see dip as a buying opportunity for quality stocks
Key Triggers Ahead
- US inflation data (CPI/PCE reports)
- RBI’s June policy
- Election developments
Bottom Line
While Fed worries drove the decline, India’s strong fundamentals may limit further downside. Investors should stay selective and avoid panic selling.
