Stock Market Crashes on Economic Survey Day! Know What Dragged Stocks

The Indian stock market saw a sharp fall on Thursday, with the Sensex dropping by 525 points. The main reasons for this decline include the US Fed keeping interest rates unchanged, profit-booking by investors, and weak global cues.

Image Credit : X

Indian stock market on Thursday

Share Market Fall: On Jan 29, the Indian market dropped sharply after a two-day rise. The Sensex fell 525 points, with the Nifty 50 also in the red. This was due to profit-booking, the US Fed's rate decision, and weak global cues.

Image Credit : Getty

1. US Fed keeps interest rates on hold

The US Fed kept interest rates unchanged. After three 0.25% cuts, rates will stay at 3.50-3.75%. Chair Powell noted a strong economy but uncontrolled inflation, pausing further rate cuts for now.

Image Credit : Freepik@Ting

2. Impact of profit-booking

After a two-day rally, investors started booking profits, pressuring the market. Following a 1% gain in Sensex and Nifty, selling in IT, auto, and FMCG shares led to a drop during the session.

Image Credit : Getty

3. Weakness in global markets

Weak signals from global markets hit the domestic market. Japan's Nikkei 225 and China's Shanghai Composite traded lower, while the US market closed flat, offering no positive cues for India.

Image Credit : ChatGpt

4. Increased investor anxiety

Growing market uncertainty was seen in India's VIX index, which rose about 4% to 14.03 on Thursday. A rising VIX signals investor anxiety and caution, showing more wariness in the market.