Stock Market Crash: Tremendous fall in the stock market, Sensex fell by 1200 points, this is the reason

Stock Market Crash:  A major decline has been witnessed in the Indian stock market after the policy meeting of the US central bank Federal Reserve. The Bombay Stock Exchange index Sensex opened with a huge fall of 1153 points today. In the early trade, it was seen trading at 79,191, down 1.21 percent or 1000 points. In the early trade, out of the 30 stocks of Sensex, 2 stocks were in the green and 28 were in the red. Whereas, the National Stock Exchange index Nifty was seen trading at 23,918 in the early trade, down 1.16 percent or 280 points. Out of the 50 stocks of Nifty, 4 stocks were in the green and 46 were in the red.

Why did the stock market fall?

The Federal Reserve announced a 0.25 percent cut in the key interest rate on Wednesday night. The market was already expecting this. The market was keeping an eye on what the Fed would indicate regarding a rate cut in 2025 and has been disappointed in this regard. The Fed estimates that there could be a rate cut of 0.25 percent twice in 2025. Whereas earlier this estimate was of a rate cut of 0.25 percent 4 times.

Also read: US Central Bank Federal Reserve reduced interest rates by 0.25%, know the impact on the stock market

Global markets also declined

The US Fed’s estimates of rate cuts in the year 2025 have affected the stock markets around the world. Most Asian markets are down today. The S&P 500 and Nasdaq saw a decline of about 3 percent. The Dow Jones closed down by 2.58 percent. At the same time, the US dollar has seen a tremendous rise. After the decisions of the US Fed, the US dollar has reached a 2-year high.

These stocks saw a decline

Among the Nifty pack stocks, the biggest losers today were Asian Paints (2.20%), Hindalco (2.14%), Tata Steel (1.97%), BEL (1.94%) and Mahindra & Mahindra (1.90%). On the other hand, Dr. Reddy’s and Tata Consumer stocks saw the biggest gains.

All sectoral indices declined

On Thursday morning, all sectoral indices were seen trading in the red. The biggest decline was seen in Nifty Metal by 1.57 percent. Apart from this, Nifty IT fell by 1.16 percent, Nifty Bank by 1.19 percent, Nifty Auto by 1.21 percent, Nifty Financial Services by 1.27 percent, Nifty FMCG by 0.33 percent, Nifty Media by 0.75 percent, Nifty Pharma by 0.03 percent, Nifty PSU Bank by 1.12 percent, Nifty Private Bank by 1.11 percent, Nifty Realty by 0.74 percent, Nifty Healthcare Index by 0.10 percent, Nifty Consumer Durables by 0.77 percent, Nifty Oil & Gas by 0.92 percent, Nifty Midsmall Healthcare by 0.32 percent, Nifty Midsmall Financial Services by 0.94 percent and Nifty Midsmall IT & Telecom by 0.79 percent.