On Thursday, Indian stocks experienced a considerable decline as investors evaluated the potential ramifications of Donald Trump's second presidential victory on worldwide economic growth and future interest rate trends.
There is widespread concern that another Trump administration might impede global economic expansion, with potential shifts in areas ranging from climate change policies to international relations.
Moreover, fears have arisen that Trump's reentry into the White House could trigger a fresh wave of inflation, potentially postponing interest rate reductions across the globe.
Market participants also focused on the upcoming interest rate decisions from both the Bank of England and the U.S. Federal Reserve, anticipated later in the day. Both central banks are expected to lower rates by 25 basis points.
Investors are keenly watching the commentary of Federal Reserve Chair Jerome Powell regarding the policy outlook in light of Trump's victory.
The key market indices reflected this apprehension, with the S&P BSE Sensex dropping by 836.34 points, equivalent to a 1.04% decrease, closing at 79,541.79. Meanwhile, the broader NSE Nifty index decreased by 284.70 points, or 1.16%, concluding at 24,199.3.
Hindalco Industries experienced a significant 8.4% decline as its subsidiary Novelis reported an 18% decrease in second-quarter net profits and halted guidance on key financial metrics.
Other notable decliners included Adani Enterprises, Shriram Finance, Grasim Industries, and Trent, with losses ranging from 3% to 6%.
Conversely, Apollo Hospitals Enterprise saw an impressive rise of 6.3% following the announcement of an ambitious capital expenditure initiative.
