Business

Sensex tumbles 793 points due to concerns about stalled US rate cuts

On April 12, the BSE Sensex saw a drastic drop of 793 points, while the Nifty also closed with a significant loss of 234 points. Almost all sectoral indices ended in the red, with 60 per cent of stocks declining.

The market witnessed heavy selling in frontline stocks, causing the Sensex to plunge. Sun Pharma and Maruti were among the top losers, with both stocks seeing a significant decrease in value.

Vinod Nair from Geojit Financial Services attributed the market’s consolidation to concerns over delayed US rate cuts, escalating tensions in the Middle East, and subdued Q4 earnings projections. Investors are also questioning the feasibility of the US Fed’s anticipated three rate cuts this year.

Rupak De, a Senior Technical Analyst at LKP Securities, noted that the Nifty experienced a consolidation breakdown, leading to a negative sentiment in the short term. However, there is support at 22,500, which could prevent a significant correction in the market.

Despite the negative trend in the Indian markets, European markets performed well as the ECB hinted at a potential rate cut in the near future. This news may have a positive impact on the market in the coming days, according to Nair.

IANS

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