Market dips amid Russia-Ukraine tensions and Fed rate cut uncertainty
New Indian ExpressNEW DELHI: The Indian equity markets witnessed a sharp sell-off on Thursday, with the benchmark indices BSE Sensex and NSE Nifty 50 declining by approximately 1.5% each. The drop was primarily driven by heavy selling in IT stocks amid uncertainty over US interest rate cuts and escalating geopolitical tensions following Russia’s renewed attacks on Ukraine’s energy infrastructure. The overnight sell-off in the US, spurred by uncertainties over the Federal Reserve’s rate-cut trajectory and rising geopolitical tensions, triggered a correction in IT and consumer discretionary stocks,” said Vinod Nair, Head of Research at Geojit Financial Services. Manish Bhandari, CEO and Portfolio Manager at Vallum Capital Advisors, commented, “The market is factoring in solid growth but persistent inflation, which could delay the Federal Reserve’s rate cuts despite prior signals. However, the recent cooling of bond yields by 85 basis points over three days suggests optimism that inflation may ease in the near term.” Bhandari remained positive on the IT sector, highlighting its prospects amidst a US manufacturing resurgence and opportunities for Indian IT firms to capitalize on this growth.