Despite the Fed Reserve's rate cut, the market showed weakness, and the domestic stock market opened lower on Thursday. The Sensex slipped 215 points to 84,783, and the Nifty fell 65 points to 25,989. Nifty Pharma, Metal, and FMCG registered declines, while realty stocks saw a slight gain. The rupee also weakened by 21 paise against the dollar.
Stock market today: On Thursday, the domestic stock market opened in the red despite the US Federal Reserve's interest rate cut. At 9:19 AM, the BSE Sensex was trading down 214 points at 84,782.59, and the Nifty fell 65 points to 25,988.85. The Nifty Pharma, Metal, and FMCG indices witnessed declines, while Nifty Realty shone with a 0.5% gain. Meanwhile, the rupee also weakened, falling 21 paise to 88.43 per dollar.
Sensex and Nifty Decline
At the start of trading, the BSE Sensex fell 214.54 points to reach the 84,782.59 level. Similarly, the NSE Nifty was seen trading down 65.05 points at 25,988.85. Pressure was observed in the banking and IT sectors, while real estate stocks showed slight strength.
Nifty Bank also opened with weakness, slipping 82.7 points to the 58,302.55 level. Amid market volatility, investors adopted a cautious stance.
Sectors with the Biggest Declines
In morning trade, the Nifty Pharma index fell 0.8 percent, making it the weakest sector. Additionally, Nifty Metal and Nifty FMCG registered a 0.4 percent decline. The Nifty Private Bank index also dropped 0.2 percent. On the other hand, real estate stocks saw a slight gain, with the Nifty Realty index rising 0.5 percent.
According to analysts, mixed signals from foreign markets and the strengthening US dollar impacted the domestic market. Investors are currently keeping an eye on the Fed's next move and the Reserve Bank of India's monetary policy.
Impact of Fed's Decision
The US Federal Reserve cut interest rates by 25 basis points overnight, but Chairman Jerome Powell indicated that no further cuts would be made in December. Following this statement, the Dollar Index strengthened to 99.05, and US bond yields remained at 4.07 percent. The strengthening dollar put pressure on emerging markets, and its impact was also visible in the Indian equity market.
Rupee Also Weakened
Along with the stock market, the Indian currency also remained weak. In early trading on Thursday, the rupee fell 21 paise to 88.43 per dollar. According to forex traders, the rupee was under pressure due to the strengthening dollar and the Fed's hawkish stance.
In the interbank foreign exchange market, the rupee opened at 88.37 but soon slipped to 88.43. On Wednesday, the rupee had closed at 88.22. Traders state that selling by Foreign Portfolio Investors (FPIs) and high crude oil prices also impacted the rupee.
Cautious Market Sentiment
Amid the Fed's signals and global market volatility, there is currently a cautious sentiment among domestic investors. Experts believe that the market's direction in the coming days will depend on corporate earnings, global economic data, and the movement of the dollar. Despite the initial decline, there is some activity in mid-cap and small-cap stocks, suggesting that volatility in a limited range is likely to continue in trading.
