Why Share Market Crash: After the US Federal Reserve's decision to cut interest rates, the Indian stock market was so shaken that investors lost Rs 10.5 lakh crore today. The Sensex closed with a fall of 966 points while the Nifty fell by 247 points. Thursday's trading session was a loss-making one for the Indian stock market.  

Impact of the news from America 

The Sensex fell 1.20 percent to close at 79,218 points and the Nifty fell 247 points or 1.02 percent to close at 23,951. The reason for the fall in the market is believed to be the US Fed's decision to cut interest rates and the future outlook, which has predicted a reduction in interest rates only twice for 2025. At the same time, the market was expecting interest rates to be cut four times next year.  

All-round decline in the stock market

There was an all-round decline in the stock market. The Nifty Midcap 100 index fell 167 points or 0.28 percent to 58,556 and the Nifty Smallcap 100 index fell 97.25 points or 0.51 percent to 19,133. All indices except pharma and healthcare closed in the red. Auto, IT, Fin Services, Realty, Media, Energy and Private Bank were the biggest losers.  

Today's top gainers and losers  

On the Bombay Stock Exchange (BSE), 1,684 stocks closed in the green, 2,309 in the red and 102 closed unchanged. Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance Industries, TCS, Infosys, Tata Motors and ITC were the top losers. Sun Pharma, HUL and Power Grid Corporation were the top gainers.  

Market experts said that the Indian market witnessed a massive decline after the global sell-off due to the US Fed's aggressive stance on interest rates. Interest rate sensitive sectors like banking and real estate suffered a lot. Experts further said, "The Bank of Japan's decision to keep the interest rate stable surprised economists, which helped reduce the selling pressure. Investors should remain cautious amid the ongoing sell-off by FIIs.