Indian stocks unmoved by US market rally as Sensex sheds 738 points and Nifty 219

• After an initial spike, Sensex dipped by 738 points and Nifty lost 219 points to 8,747 points in the morning trade.
  
• The Dow Jones rallied over 4%, the Nasdaq by as much as 6%, and the S&P500 by over 5% yesterday.
  
• US President Donald Trump announced an $850 billion stimulus package yesterday.

Indian equity markets index BSE Sensex opened in the green after Donald Trump announced a stimulus package for the US. However, after the initial interest, it dipped by 738 points at 11:50 am. Nifty lost 231 points to 8,735 points, down by 2.62% in the morning trade.

While global selloffs had a transmission effect on Indian exchanges, good news is bringing little cheer. The Dow Jones rallied over 4%, the Nasdaq by as much as 6%, and the S&P500 by over 5% before cooling off a bit mid-day, yesterday (March 17). This was after US President Donald Trump announced an $850 billion stimulus package yesterday.

The Indian central bank itself stopped itself from providing an interest rate cut after hinting it last week. “We are not ruling out anything and we have all the instruments ready to take action as necessary,” said Shaktikanta Das on March 16, without committing to a highly expected rate cut.

After the Fed cut interest rates to zero, the market has been expecting it. However, even for the brief few hours when the market assumed a rate cut, then too the stock market remained unenthusiastic as Sensex fell by 8% or over 2700 on March 16

Heavy volatility on the back of coronavirus' economic fallout along with selling pressure in the financial stocks battered the key Indian stock markets yesterday (March 17). Sensex and the Nifty50— erased all the day's gains to end in the red in the last session.

The indices remained in the green for the better part of the day's trade; however, the emergence of massive selling pressure in the last hour of the session pulled the indices back to red.

The Nifty50 ended below the psychologically important mark of 9,000 points yesterday. It closed the day's trade down 230.35 points or 2.5% at 8,967.05 points, while the BSE Sensex slumped over 810.98 points or 2.58% to close at 30,579.09.


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