Indian markets experienced a sharp decline on Tuesday as investors expressed caution ahead of the Federal Reserve's impending decision on interest rates. The Fed is poised to announce its final rate adjustment for the year on Wednesday, with market expectations heavily leaning towards a third consecutive rate cut.
A reduction of 25 basis points is already anticipated by market participants. The focus now shifts to analyzing the dot plot, Chair Powell's statements, and the Fed's broader strategic projections, especially with an eye on 2025 under the Trump administration.
Additional factors contributing to the market downturn included inconsistent foreign institutional investor (FII) inflows, a robust U.S. dollar, and increasing U.S. bond yields, all of which prompted widespread selling.
The benchmark S&P BSE Sensex dropped significantly, losing 1,064.12 points, or 1.30%, to settle at 80,684.45. Similarly, the broader NSE Nifty index ended the day at 24,336, down by 332.25 points or 1.35% compared to its previous closing.
Notable among the declining stocks were JSW Steel, Bharti Airtel, Hero MotoCorp, Grasim, and Shriram Finance, each suffering declines between 3% and 5%.
The material has been provided by InstaForex Company -
www.instaforex.com
