Sensex Price Falls After Fed Reserve Chair Powell’s Speech

Summary:
• However, after the speech by U.S. Federal Reserve Chair Jerome Powell, a decline was noted, with a drop of 0.9% from the previous session..

India’s Sensex index showed a bullish trend at the Bombay Stock Exchange (BSE) earlier today. However, after the speech by U.S. Federal Reserve Chair Jerome Powell, a decline was noted, with a drop of 0.9% from the previous session. His remarks proposed a long period of increased interest rates in the United States, causing volatility in the global markets.

Powell indicated that even though the U.S. economy has been stabilising, inflation remains a major concern, and the Federal Reserve will continue its rigid monetary policy for a longer period to bring inflation back to the target levels. This hawkish stance destabilised investors worldwide, causing a sell-off in equities, especially in emerging markets like India.

Sensex share price today.

The INDEXBOM: SENSEX experienced significant selling pressure across many sectors, with metal stocks, IT, and banking being the most affected. Big IT companies like Infosys and Tata Consultancy Services’ shares dropped by over 2%. Investors are concerned about the effects of a stronger USD and potential decline in IT spending by U.S.A clients. Banking stocks, like  ICICI Bank and HDFC Bank, also lost 1.5% due to concerns over the impending effects of higher interest rates on profitability and loan growth.

Market players should exercise caution in the coming days as investors process Powell’s remarks, according to market analysts. Rakesh Sharma, the chief investment strategist at Axis Securities, said,

The Sensex’s drop today reflects global concerns following Powell’s speech. Investors are likely to remain cautious, with a focus on global economic indicators and the Federal Reserve’s policy path.”