Benchmark stock indices witnessed a sharp decline on Monday as investors braced for critical US jobs data. This report could influence potential interest rate cuts in the United States.
By 2:31 pm, the S&P BSE Sensex had dropped by 1,070.69 points to 81,130.47, while the NSE Nifty50 was down by 314.10 points, trading at 24,831. Broader market indices, including small and mid-cap stocks, also faced steep declines, with volatility rising over 8%.
The market slump wiped out nearly Rs 5 lakh crore from the total market capitalization of all companies listed on the Bombay Stock Exchange (BSE).
The sell-off impacted all sectors, with major stocks like Reliance Industries, SBI, ICICI Bank, L&T, Infosys, ITC, HCL Tech, and HDFC Bank leading the decline.
– Reliance Industries shares dropped by over 1.8%.
– Banking stocks, including Axis Bank, ICICI Bank, and SBI, experienced significant losses.
– SBI shares fell over 4% after Goldman Sachs recommended selling shares of the country’s largest public bank.
Other major losers on the Nifty50 included HCLTech, Tata Motors, ITC, NTPC, and BPCL.
Also read: Chhatrapati Statue Crash: Sculptor To Challenge ‘Attempt To Murder, Conspiracy’ Charges
The police argue they need to investigate whether technical aspects like weather con
The market’s downturn is primarily attributed to anxiety surrounding the upcoming US jobs report. This data could influence the Federal Reserve’s decision on interest rate cuts.
Federal Reserve Chair Jerome Powell recently expressed concerns over a weakening labor market, raising the likelihood of a potential rate cut in September. Analysts predict the creation of 165,000 new jobs and a decrease in the unemployment rate to 4.2%. However, fears of a larger-than-expected rate cut are growing.
Also read:
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that a weaker-than-expected jobs report could prompt a significant rate cut, which may further unsettle the markets.
The decline in Indian equity markets was worsened by the sharp drop in bank stocks. Concerns about loan and deposit growth also contributed to investor worries.
Recent data from the Reserve Bank of India indicated an 11.7% increase in deposits and a 15% surge in bank credit, raising concerns over liquidity.
Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services Ltd., attributed the Sensex and Nifty50 decline to uncertainty around the US jobs report and its impact on Federal Reserve policy.
Santosh Meena, Head of Research at Swastika Investmart Ltd., explained that the market drop followed a period of consolidation, with weaker US job data heightening concerns of a global economic slowdown.
Widows in Vrindavan celebrated Holi 2025 with joy, breaking long-standing traditions in Lord Krishna’s childhood…
Holi, known as the 'Festival of Colors', is one of the most important Hindu festivals.…
Supreme Court and several high courts in India have voiced concerns regarding the growing misuse…
The court will hear defamation petition of AAP leader Satyendar Jain against BJP MP Bansuri…
The Delhi High Court rejected a plea to rename India as Bharat, directing the petitioner…
The ED remand for MK Faizy, president of the Social Democratic Party of India (SDPI),…