- By Aditya Pratap Singh
- Fri, 12 Apr 2024 03:47 PM (IST)
- Source:JND
Stock Marketing Closing: Amid the heavy selloff, the stock market ended the day trading in red, with the benchmark indices Nifty 50 and Sensex plunging over 1 percent. BSE's Sensex ended trade at 74,244.90, down by 793 points or 1.06 percent. While NSE's Nifty 50 closed at 22,519.40, down by 234.40 points or 1.03 percent.
Power Grid, Titan, JSW Steel, Sun Pharma, Maruti, Tech Mahindra, Larsen & Toubro, and State Bank of India were major losers on the Sensex. While, Tata Consultancy Services Tata Motors, and Nestle were the gainers.
In Asian markets, Tokyo closed in positive territory, while Seoul, Shanghai, and Hong Kong closed lower. European markets are trading in green. Wall Street ended Thursday with mostly gains.
The major reason behind Today's Fall
Delay in rate cut
Equity markets worldwide are rising in hopes that the high-interest rate cycle is behind us and that the US Federal Reserve will soon begin to lower interest rates. Higher-than-expected inflation data has dispelled hopes that the US Federal Reserve may soon begin to lower interest rates.
Also read: India's GDP To Grow At 6.1% In 2024, Lower Than 7.7% In 2023: Moody's Analytics
Inflation
Higher than-expected US inflation means an increase in both US bond yields and the dollar index. A stronger dollar and higher bond yields could affect foreign inflows, as investments in emerging markets become less attractive if US bond yields and the dollar index are not recognized.
commodity prices
Prices of base metals and petroleum products have risen in recent times. Aluminum prices on the London Metal Exchange reached $2220 a tonne in mid-March, rising to $2400 a tonne. In March, copper prices on LME increased to around $9200 per tonne, which was close to $8700 per tonne.