Market Closes in the Red: Sensex Ends Down 270 Points, Nifty at 21; IT, FMCG, Bank Worst Hit

Market Closes in the Red: Sensex Ends Down 270 Points, Nifty at 21; IT, FMCG, Bank Worst Hit

VoM News Desk | January 25, 2024 | 04:32 PM IST | Breaking News | Follow on Google News

Market Closes in the Red: Sensex Ends Down 270 Points, Nifty at 21; IT, FMCG, Bank Worst Hit/PTI

Market Closes in the Red: Sensex Ends Down 270 Points, Nifty at 21; IT, FMCG, Bank Worst Hit

The closing bell witnessed benchmark indices in the red on Thursday, with IT, Pharma, Healthcare, and FMCG sectors being the most significant losers. In contrast, Realty, Auto, Media, and Metal sectors ended the day on a positive note.

Global Markets Pause Amid Earnings and Central Bank Meetings

Global stocks took a breather on Thursday following recent sharp gains. Investors, in the wake of the latest earnings news, awaited the meeting of the European Central Bank and economic growth data from the US. Europe’s Stoxx 600 index slipped, and the blue-chip Euro Stoxx 50 traded flat after reaching a 23-year high on Wednesday. The focus remains on central banks’ stance on interest rates, with the ECB expected to keep rates steady while providing insights into future directions. Simultaneously, US data, including GDP, inventories, new home sales, and unemployment claims, will influence market sentiment.

Key Focus on US Treasury Markets and Chinese Monetary Stimulus

A critical element for risk assets is the US Treasury markets, where long-dated yields have been rising. Chinese and Hong Kong shares experienced gains during the day, influenced by the People’s Bank of China’s plan to cut banks’ reserve requirement ratio next month. Questions arise about the effectiveness of such monetary stimulus, given historical trends. Despite doubts, the pledge has lent support to industrial metals prices, while oil traded near a one-month high. In the US, investors are closely analyzing economic data, including GDP figures, as they contemplate potential Federal Reserve interest rate cuts. Wednesday’s released data indicating expanded business activity in January has positively impacted stock expectations.

Oil Trades Near One-Month High on Inventory Drop and Chinese Stimulus

Oil prices advanced, reaching near a one-month high, following a more substantial than expected drop in US crude inventories. Additionally, China’s announcement of plans for more stimulus contributed to the positive momentum in the oil market.

VoM News Desk

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