Stock Market Crash / One decision of America and Indian stock market crashed, Sensex fell by 1200 points

Stock Market Crash: After a huge fall in the stock markets in the world's largest economy, the US, the Indian stock market also registered a big decline on Thursday. The US Federal Reserve's cut in interest rates by 0.25% and indications of only two rate cuts in the next year 2025 led to disappointment in the global markets. This also affected the Indian market, where a sharp decline was seen in the Sensex and Nifty.

Significant fall in Sensex and Nifty

On Thursday, the Indian market started trading with a huge decline. The Sensex fell by more than 900 points, while the Nifty is trading with a decline of 321 points. Intra-day, the Sensex fell by 1162 points and the Nifty went down by 328 points. The Sensex has come close to 79,000, and the Nifty slipped below 23,900.

Federal Reserve's decision and market mood

The US Federal Reserve cut interest rates by 0.25% on Wednesday night. This is the third consecutive cut, but the market was disappointed with the Fed's future rate cut signals. Earlier, a cut of 0.25% was expected four times in 2025, but now only two cuts have been indicated. Due to this, the US stock market fell, which also affected the global markets including the Indian market.

FMCG index stable, decline in other sectors

In the Indian market, all sectors except the FMCG index registered a decline of up to 2%. However, the Nifty index of FMCG remained almost flat. This indicates that investors are considering this sector as safe, while heavy selling was seen in other sectors.

Huge loss in investors' wealth

The market cap of companies listed on the BSE has fallen by Rs 5.93 lakh crore. The total market cap of all stocks on the BSE on Wednesday was Rs 4,52,60,266.79 crore, which fell to Rs 4,46,66,491.27 crore on Thursday. This means that there has been a huge loss in the capital of investors.

Impact of US rate cut on Indian market

The rate cut by the Federal Reserve has had a direct impact on the Indian market. While on one hand the fall in the US markets increased panic among investors, the domestic market was also not untouched by it. Foreign investors (FIIs) in the Indian market are seen in a selling mood, which has put the market under further pressure.

Experts' advice for investors

Adopt a long-term view: Instead of panicking from the current fall, investing for the long term can be more beneficial.

Invest cautiously: Keeping in mind the volatility in the market, invest in stocks with good and stable fundamentals.

Focus on FMCG and defensive stocks: The fall in these sectors has been less and they can provide stability.

Conclusion

The impact of the US Federal Reserve's decision to cut interest rates was not limited to the US, but it had a wide impact on the Indian and global markets. The massive fall in the Sensex and Nifty has dealt a big blow to Indian investors. However, experts believe that amid market volatility, benefits can be reaped by adopting caution and long-term investment strategies.