Indian Markets Plunge Amid US Economic Concerns

Indian stock markets experienced significant declines as investors reacted to concerns over US economic data and its potential impact on Federal Reserve interest rate decisions. The S&P BSE Sensex dropped by over 1,070 points, while the NSE Nifty50 fell by more than 300 points, erasing nearly Rs 5 lakh crore in market capitalization. Major sectors, including IT, banking, and financial services, saw steep declines, with stocks like Reliance Industries, SBI, ICICI Bank, and Infosys leading the downturn. This sell-off was driven by anxiety ahead of key US jobs data, which could influence the Federal Reserve's rate cut decisions. Analysts like Dr. V K Vijayakumar noted that weaker jobs data could lead to significant rate cuts, potentially unsettling markets further. Additionally, concerns over a slowdown in global economic growth and falling bank stocks exacerbated the declines in Indian equity markets.