Yesterday, late in the night of September 18, the Federal Reserve took a major decision and announced a 50 basis point cut in the repo rate. This rate cut was made by the US Reserve Bank after a gap of four years. Now the impact of the Fed rate cut is visible from the global market to the Indian market. In the Indian stock market, the Sensex-Nifty opened with strong gains in the early trading and later touched a new all-time high.
Sensex hit an all-time high of 83,773.61 points and Nifty hit an all-time high of 25,611.95 points. However, thereafter, the stock market turned chaotic. Sensex-Nifty retreated from the highs and by 1:20 pm, Sensex was 180 points higher at 83,128.74 and Nifty was 29 points higher at 25,407. Profit booking was strong in small and mid-cap stocks. Many stocks fell by up to 20%.
Mid-cap and small-cap stocks fall
BSE midcap fell 619 points to 48,237.95. Of its top 30 stocks, 20 fell sharply. The biggest loser was VI, which fell 11.62%. Apart from this, stocks like Oil and Torrent Power also fell 6%. While BSE smallcap fell 831 points. Of its top 30 stocks, 20 fell sharply, while the remaining 10 stocks rose. Chambal Fertilizer Small Cap Index fell 7%.
These 10 stocks are scattered
- Chambal Fertilizer shares fell 7% to Rs 483 per share.
- IIFL Finance shares also fell around 7% to Rs 493.
- PNB Housing Finance shares were trading at Rs 1,020, down 5%.
- Vodafone Idea shares fell 14% to 11 rupees.
- Indus Tower fell 9% and was trading at Rs 390.
- Indian Oil Corp. shares were trading at Rs 560, down 6%.
- Share prices of HAL, ABB India, RECL and Power Finance Corporation fell 5 per cent.
PSU stocks also fell sharply
IT and government companies in the Indian stock market did not like the US decision to cut interest rates. Shares of the defence sector, railways and other government companies were falling. From IRFC, RVNL to TCS, share prices fell by 6%.
(Note- Always take advice from market experts before investing in any stock.)
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