US connection causes 'chaos' in the market, Sensex drops 1190 points

Share Market News: Another volatile day was seen in the Indian stock market today. After the morning rise, heavy selling started in the IT sector by afternoon. By the time the market closed, both Sensex and Nifty lost momentum and closed in the red.

Effect of US Fed policy

The main reason for this decline in the stock market is believed to be the uncertainty regarding the interest rate cut by the US Federal Reserve. The latest inflation data suggests that the pace of interest rate cuts may be slower than expected. This had a direct impact on the shares of the Indian IT sector, which fell by about 4%.

Status of Sensex and Nifty

Sensex:

29 out of 30 Sensex stocks closed in the red. Only SBI's stock was able to stay on the green mark with a gain of 0.59%.

Nifty 50:

46 out of 50 Nifty stocks remained in the red. Shares of companies like ADANIENT, SHRIRAMFIN, SBIN, and CIPLA registered a slight rise.

Heavy pressure on IT sector

The IT index fell by 2.3% today. Big names like LTTS, Infosys, Tech Mahindra, and HCL Tech suffered the most. Investors withdrew their investments from IT stocks and turned to other sectors.

Adani Group shares rise

In this declining environment, Adani Group shares registered a rise. The group regained investor confidence after clarification related to the allegations of US Foreign Corrupt Practices Act.

Adani Energy Solutions and Adani Total Gas rose by 9% and 9.3% respectively.

Adani Green Energy jumped 8.3%, reaching a high of Rs 1,072.

Adani Power, Adani Enterprises, Adani Wilmar, and Adani Ports also saw gains of up to 5%.

Big drop in market cap

With today's decline, the total market cap of BSE-listed companies fell by Rs 1.52 lakh crore to Rs 442.96 lakh crore. This is a big drop for the market, reflecting investor concerns.

Further forecast

The direction the market will take in the coming days will depend on the clarity on interest rates from the US Fed and domestic economic indicators. At present, the weakness of the IT sector and the growth of the Adani Group indicate a mixed sentiment in the market.

Advice for investors

Long-term investors need not panic.

Invest in the IT sector cautiously for now.

Keep an eye on strong-performing stocks like Adani Group companies.

The market will remain volatile, but experts believe that this can also be an opportunity for long-term investors.