look news india
The fear of America is clearly visible in the stock market. Due to the strength of the US dollar, the impact of the fall in the rupee is being seen on the stock market. The second reason is the fear before the decision of the Federal Reserve meeting. The clear effect of which is visible on the stock market. Then for the second consecutive day the market is witnessing a decline. According to the information, it has been revealed that investors have lost Rs 3 lakh crore. Let us know why the decline is being seen in the stock market.
Apprehension before Fed meeting
Investors turned cautious ahead of the Federal Reserve’s policy meeting tomorrow, in which the central bank is expected to signal an interest rate cut. While the CME FedWatch tool shows a 97 percent chance of a 25 basis-point rate cut on Wednesday. Uncertainty remains over the Fed’s 2025 rate path as recent US data points to persistent inflation and a resilient economy.
Weakness in China’s economy
Data released on Monday showed that China’s consumption slowed more than expected in November. Retail sales rose just 3 percent, much lower than October’s 4.8 percent rise, while industrial production rose 5.4 percent year-on-year. The slowdown could hit global commodity demand, posing a risk to India’s metals, energy and auto sectors, which are sensitive to China’s economic trends. Nifty Metal and Auto sectors fell more than 0.6 percent in today’s trade.
dollar strength
The dollar index is steady at 106.77, but up 5 percent this year. Strong dollar prevents foreign investors from investing in India’s stock market. This also increases the cost of dollar-denominated loans for Indian companies.
increasing trade deficit
India’s trade deficit widened to an all-time high of $37.84 billion in November, from $27.1 billion in October. The main reason for this is the increase in import bill and decrease in exports. India’s trade deficit will increase to $37.8 billion in November, which will put pressure on the rupee and it will reach $85 against the dollar. Exporters like IT and pharma will benefit from the rupee’s depreciation, but for importers, the increase in import costs will impact their stock prices.
impact on global market
The impact of the decline in the global market is clearly visible on the stock market as well. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% on expectations that the US Federal Reserve will cut rates. Japan’s Nikkei fell 0.15%. Eurostoxx 50 futures were down 0.16%, while German DAX futures were down 0.06%, and FTSE futures were 0.24% weaker.
Stock market boomed today
A decline was seen in the stock market on Tuesday. At 12:17 pm, the Bombay Stock Exchange benchmark index was trading 952.84 points down at 80,801.30. Whereas during the trading session, Sensex also touched the day’s low of 80,732.93 points. At the same time, the main index of National Stock Exchange Nifty is trading at 24,379.50 points, falling by 288.75 points. Whereas during trading, Nifty fell by almost 300 points to 24,366.40 points.