Indian markets join global selloff as US Fed indicates fewer rate cuts ahead; Sensex sinks below 80k
Mumbai, Dec 19: Equity benchmark Sensex on Thursday plunged about 965 points to crash below the 80,000 level due to heavy selling in global equities after the US Federal Reserve signalled fewer rate cuts next year.
Besides, deep losses in consumer durables, banking and IT stocks amid foreign fund outflows added to the gloom, analysts said.
Falling for the fourth day running, the 30-share BSE benchmark Sensex tanked 964.15 points or 1.20 per cent to settle at 79,218.05. During the day, the blue-chip index cracked 1,162.12 points or 1.44 per cent to 79,020.08.
As many as 2,315 stocks declined while 1,680 advanced and 100 remained unchanged on the BSE.
The NSE Nifty tumbled 247.15 points or 1.02 per cent to sink below the 24,000 mark at 23,951.70.
In the past four days, the BSE benchmark tanked 2,915.07 points or 3.54 per cent and the Nifty declined 816.6 points or 3.29 per cent.
"The Indian market saw a widespread decline following a global sell-off driven by the US Fed’s hawkish stance on interest rates. Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt.
"However, the BoJ's decision to keep its interest rate steady, which surprised economists, aided in reducing the selling pressure. Despite this, investor caution persisted amid ongoing FII selling, with a strategic shift towards defensive sectors like pharma as evidenced by their outperformance," Vinod Nair, Head of Research, Geojit Financial Services, said.
From the 30 blue-chip pack, Infosys, Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance Industries, Tata Consultancy Services, Infosys, Tata Motors and Mahindra & Mahindra were the biggest laggards.
On the other hand, Sun Pharma, Power Grid and Hindustan Unilever were the gainers.
"Markets were plundered tracking negative global cues as benchmark indices slipped below their psychological levels on broad-based selling after the US Fed's hawkish stance raised concerns over further rate cuts next year. Rising US bond yields have pushed global currencies, including the rupee to new lows, while renewed foreign fund outflows from domestic equities could prompt investors to turn risk averse," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The rupee dropped 14 paise and breached the crucial 85 level to close at an all-time low of 85.08 (provisional) against the US dollar on Thursday.
The BSE midcap gauge declined 0.30 per cent and smallcap index dipped 0.28 per cent.
Among sectoral indices, BSE Focused IT tanked 1.20 per cent, consumer durables (1.15 per cent), IT (1.13 per cent), capital goods (1.07 per cent), teck (1.05 per cent) and financial services (1.05 per cent).
BSE Healthcare emerged as the only gainer.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.
European markets were trading in the negative territory. Wall Street ended sharply lower on Wednesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,316.81 crore on Wednesday, according to exchange data.
Global oil benchmark Brent crude dipped 0.08 per cent to USD 73.33 a barrel.
The BSE benchmark Sensex tumbled 502.25 points or 0.62 per cent to settle at 80,182.20, taking its downtrend to the third day on Wednesday. The Nifty declined 137.15 points or 0.56 per cent to 24,198.85.
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Rajnath to top commanders: Outmaneuver adversaries with strategic surprise
Jaipur/New Delhi (PTI): Defence Minister Rajnath Singh on Friday directed the top military commanders of the three services to integrate an "element of surprise" into modern warfare to outmaneuver India's adversaries and bolster strategic posture.
In his address at the joint commanders conference in Jaipur, Singh also described the Operation Sindoor as a testament to the "swift, precise, and joint response" of the Indian armed forces to safeguard national interests and called upon the military to remain ready to deal with any security challenges.
In their two-day deliberations, the commanders carried out a comprehensive review of the combat preparedness of the military in the wake of the evolving regional security situation.
Operation Sindoor was a demonstration of India's growing capabilities and a symbol of the nation's collective resolve and new military ethos, Singh said, a day after the first anniversary of Operation Sindoor.
He also unveiled a 'Joint Doctrine for Integrated Communication Architecture' that is aimed at strengthening doctrinal clarity, interoperability and integrated communications across the armed forces in future multidomain operations.
The joint commanders' conference, themed 'Military Capability in New Domains', brought together the top leadership of the defence ministry and the three services to deliberate on emerging security challenges and future readiness.
Comprehensive deliberations were held on future warfare, multidomain operations, technological transformation and joint capability development.
The conference witnessed extensive discussions on cognitive warfare, cyber resilience against evolving quantum and AI-enabled threats, military capability development in emerging domains, indigenous innovation and AI-enabled warfighting concepts.
It was attended by Chief of Defence Staff Gen Anil Chauhan, Chief of the Naval Staff Admiral Dinesh Kumar Tripathi, Chief of the Army Staff Gen Upendra Dwivedi, Chief of the Air Staff Air Chief Marshal AP Singh and Defence Secretary Rajesh Kumar Singh among others.
In his remarks, Singh asked the commanders to remain "future-ready" by learning from the operation as well as the current global security landscape.
He underscored the need to strengthen capabilities in artificial intelligence, autonomous systems, data analytics and secure communication networks to stay prepared in the rapidly evolving geopolitical security scenario. He emphasised that future conflicts will increasingly be shaped by hybrid threats, information dominance and operations conducted simultaneously across cyber, space, electromagnetic and cognitive domains, according to an official readout.
Highlighting the transformative impact of emerging technologies, Singh stressed on the importance of ensuring integrated national preparedness across all spectrums of conflict, it said.
Singh's remarks at the conference came a day after the first anniversary of Operation Sindoor.
The defence minister appreciated the progress achieved in enhancing jointness, integration and technological adoption across the three services, the readout noted.
Singh said that jointness constitutes a pivotal dimension within the transformative changes sweeping across the global defence sector.
"Future wars will not be won solely through weaponry, but through innovative thinking and enhanced synergy," he said.
The defence minister exhorted the commanders to cultivate the "element of surprise" to remain unpredictable to the nation's adversaries and secure a strategic edge in any given situation.
He, however, urged them to remain vigilant of the element of surprise of the enemy and always stay two steps ahead.
Singh also reiterated the Narendra Modi government's commitment to enhancing the capabilities of the defence forces through state-of-the-art weapons and platforms. He added that special focus is being laid on research in niche domains.
During the conference, he released a documentary film on Operation Sindoor.
The film reaffirms the nation's and defence forces' commitment to operational preparedness and decisive national response capabilities.
Demonstrations of advanced systems and platforms developed for intelligence fusion, operational planning and information management were also showcased during the conference reflecting growing integration of cutting-edge technologies into joint operational structures, according to the defence ministry.
The discussions will contribute significantly towards shaping India's future military transformation and integrated operational preparedness, it said.
