Indian stock market experienced a significant drop on Thursday, as hopes for a Fed rate cut diminished and peace negotiations to resolve key issues between Hamas and Israel carried on.
Additionally, the weaker-than-expected March quarter results, coupled with the uncertainty over the outcomes of the ongoing 2024 Lok Sabha elections, put investors on the edge.
Susan Collins, President of the Federal Reserve Bank of Boston, mentioned on Wednesday, her lack of surprise at the concerning inflation data. She suggests that the U.S. economy needs to decelerate further to achieve the central bank's 2 percent inflation target.
In the Middle East, investors are eagerly waiting for clarity on a possible ceasefire between Israel and Hamas as Israeli actions intensify in Rafah.
The standard S&P BSE Sensex ended the day down by 1,062.22 points, or 1.45 percent, at 72,404.17, marking the third consecutive session of losses. Similarly, the wider NSE Nifty index dropped 345 points, equating to 1.55 percent, to 21,957.50.
Companies like ONGC, Coal India, Asian Paints, BPCL, and Larsen & Toubro saw a drop between 4-6 percent in the Nifty pack. However, automobile companies like Bajaj Auto, Mahindra & Mahindra, Tata Motors, and Hero MotoCorp enjoyed a surge between 1-3 percent.
SBI stocks rose by 1.1 percent after announcing a 24 percent increase in their Q4 net profit.