Domestic benchmark indices, Sensex and Nifty 50, crashed over one percent each today, following the US Fed rate cut outlook. This marks the fourth consecutive session of losses for Indian markets. The Sensex closed 964 points, or 1.2 per cent, down at 79,218, while the Nifty 50 settled 247 points, or 1.02 per cent, lower at 23,951.

The US Federal Reserve’s benchmark interest rate cut by 25 basis points was in line with market expectations but its rate cut outlook dampened market sentiment worldwide. The Fed revised its rate reduction outlook, projecting only two more rate cuts of a quarter-percentage point by the end of 2025.