Mon Jan 13 04:34:40 UTC 2025: ## Indian Markets Plunge After Strong US Jobs Report Dashes Rate Cut Hopes

**MUMBAI, INDIA** – Indian stock markets experienced a significant downturn Monday morning, following a robust US jobs report that diminished expectations of imminent interest rate cuts by the Federal Reserve. The Nifty 50 index fell 1.01% to 23,195.4 points, while the BSE Sensex dropped 0.97% to 76,629.9 points in early trading.

Several blue-chip stocks, including Asian Paints, Zomato, Mahindra & Mahindra, HDFC Bank, Bajaj Finance, Kotak Mahindra Bank, and Tata Steel, led the decline.

The Indian rupee also weakened, falling 5 paise to a record low of 86.20 against the US dollar. Forex traders attributed the pressure on the currency to a surge in crude oil prices (Brent crude rose 1.44% to $80.91 per barrel), sustained foreign capital outflow, and the negative trend in domestic equities. The rupee had already closed Friday at 86.04 against the dollar, down 18 paise.

Adding to the negative sentiment, the dollar index climbed to a more than two-year high of 109.72, and 10-year US bond yields remained elevated at 4.76%, their October 2023 peak. Foreign institutional investors (FIIs) further fueled the downturn, offloading a net Rs 2,254.68 crore in Indian capital markets on Friday. By late morning, the Sensex was down 0.71% at 76,828.42 points, and the Nifty 0.78% lower at 23,249.05 points. The overall market performance reflects growing concerns about slowing earnings and the impact of a stronger US dollar.

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