Nifty 50 Performance on Thursday: Why Indian Stock Market Suffered

Thursday, 19 September 2024, 14:49

Nifty 50 performance highlights why the Indian stock market tumbled on Thursday, following the US Federal Reserve's rate cut. Profit booking prevailed despite initial optimism, impacting midcap and small cap stocks significantly. Understanding these dynamics is crucial for investors and analysts navigating the current market landscape.
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Nifty 50 Performance on Thursday: Why Indian Stock Market Suffered

Nifty 50 Performance Decline

The Indian stock market's reaction to the US Federal Reserve's recent 50 basis point rate cut was unexpectedly muted compared to global markets. Instead of rallying, Indian investors opted for profit booking, leading to notable declines in broader markets.

Positive Start Turns Sour

The trading session commenced optimistically, with the Nifty 50 reaching a record high of 25,611 points, and the S&P BSE Sensex climbing to 83,773 points. However, the gains evaporated as sectors like PSU, telecom, and IT dragged the indices down.

  • Closing Values: Nifty 50 - 25,415 points (+0.15%), Sensex - 83,184 points (+0.29%)
  • 29 out of 50 Nifty stocks ended positively.

Midcap and Small Cap Stocks Plummet

The market's dynamics on September 19 indicated significant losses for midcap and small cap stocks. Analysts and experts believe that the anticipation of the rate cut had already been priced in, mitigating the potential for a more substantial rally.

  • Top Gainer: NTPC (+2.3%)
  • Other Notable Gainers: Kotak Mahindra Bank, Titan, Hindustan Unilever, and others.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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