Stock market today: Sensex, Nifty 50 fall 1% each on all-round selloff; investors lose about ₹5 lakh crore in a day

Equity benchmarks the Nifty 50 and the Sensex experienced significant losses on Tuesday due to widespread selling as investors remained cautious following the Bank of Japan’s decision to raise rates for the first time in 17 years, ending eight years of negative interest rates, as expected by the market. 

“The Bank of Japan ended eight years of negative interest rates on Tuesday, making a historic shift away from its focus on reflating growth with decades of massive monetary stimulus,” reported Reuters.

Also Read: Nifty 50, Sensex drop about 1% each. Why is Indian stock market down today? — explained with 5 crucial reasons

Now, attention shifts to the outcome of the US Federal Reserve meeting outcome on Wednesday. 

The Fed is expected to keep rates unchanged, but investors will focus on Fed Chair Jerome Powell’s comments to glean cues on the central bank’s stance regarding inflation, economic growth, and the trajectory of interest rates.

Also Read: US Fed meet begins today: 3 key things that may influence Fed’s interest rate decision and more

Sensex fell 736 points, or 1.01 per cent, to close at 72,012.05 while the Nifty 50 ended the day at 21,817.45, down 238 points, or 1.08 per cent.

The BSE Midcap index lost 1.36 per cent while the Smallcap index ended 1.04 per cent lower.

As many as 41 stocks ended in the red in the Nifty 50 index among which, TCS (down 4.37 per cent), BPCL (down 4.15 per cent) and Cipla (down 3.59 per cent) ended as the top losers.

On the other hand, shares of Bajaj Auto (up 1.47 per cent), Bajaj Finance (up 1.25 per cent) and Eicher Motors (up 0.82 per cent) ended as the top gainers in the Nifty 50 index.

Also Read: Top Gainers and Losers today on 19 March, 2024: Bajaj Finance, Bajaj Auto, Tata Consultancy Services, Bharat Petroleum Corporation among most active stocks; Check full list here

All major sectoral indices ended in the red on NSE; Nifty IT (down 2.90 per cent), Media (down 2.45 per cent), Pharma (down 2.17 per cent) and FMCG (down 2.16 per cent) lost the most.

Also Read: Nifty IT index slips 2.90% to hit a 9-week low; TCS shares drop by 4.3%

Nifty Bank ended 0.41 per cent lower while the Nifty Private Bank fell 0.31 per cent. The Nifty PSU Bank index declined 1.56 per cent.

“Following the Bank of Japan’s decision to hike interest rates for the first time in 17 years, the Asian peers’ mood turned sour, which pulled the Indian market to continue its recent pessimism,” said Vinod Nair, Head of Research, Geojit Financial Services.

“The correction in the domestic market has also been triggered by concerns over premium valuations and the delay of rate cuts by the US Fed due to hotter-than-expected inflation, which is evident from the upward trend in the dollar index. Investors are exercising caution as they await the upcoming US Fed meeting, seeking indications on the potential timing of a reversal in the rate cycle. Additionally, the gradual increase in crude oil prices is further dampening market sentiment,” said Nair.

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Published: 19 Mar 2024, 03:30 PM IST