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Indian Markets Tumble as Fed Fears Grip Investors
8 Dec
Summary
- Indian indices declined amid broad selloff and foreign investor retreat.
- Nifty fell below 26,000 as traders braced for hawkish Fed signals.
- Broader market underperformed, with mid-cap and small-cap indices dropping.
Domestic equity indices experienced a broad selloff on Monday, with both the S&P BSE Sensex and Nifty 50 index closing significantly lower. Foreign investors accelerated their retreat, particularly in anticipation of the US Federal Reserve's upcoming policy decision, which is widely expected to deliver another interest rate cut. This uncertainty, coupled with a weakening rupee and mixed cues from India-US trade negotiations, dampened market sentiment.
The broader market indices, including the S&P BSE Mid-Cap and Small-Cap, underperformed the frontline indices, indicating a pervasive decline across market segments. The NSE's India VIX, a measure of expected volatility, surged by 7.85%, reflecting heightened investor apprehension. Global markets also showed mixed reactions, with European shares declining while some Asian indices rose on positive trade data from China.
In company-specific news, PG Electroplast saw a sharp decline following a report on its finances, though the company denied the claims. Matrimony.com surged on news of a potential share buyback, while Dynamatic Technologies and SML Mahindra saw gains on new agreements and sales growth respectively. IPOs for Corona Remedies and Wakefit Innovations saw lukewarm subscription rates.
