<p>Bengaluru: The markets slumped for the fifth straight day, in what was the worst weekly decline on Dalal Street in five weeks. </p><p>On Friday, <a href="https://www.deccanherald.com/tags/bse-index">BSE </a>Sensex and <a href="https://www.deccanherald.com/tags/nse">NSE </a>Nifty both slumped around 1.5 per cent, on the back of risk aversion in the global bourses caused by the United States Federal Reserve’s hawkish outlook on interest rate cuts.</p>.<p>Meanwhile, the rupee recovered slightly from its record lows but still stayed above 85 to a dollar, ending the day at 85.03. Data from the Reserve Bank of India (RBI) showed that India’s foreign exchange reserves dropped by nearly $2 billion to $652.87 billion for the week ended December 13. The drop has been attributed to revaluation, along with forex market interventions by RBI to help reduce volatilities in the rupee.</p>.Zomato shares climb nearly 4% on BSE Sensex inclusion.<p>On Dalal Street an across-the-board selloff in equity markets, amid unabated selling by foreign investors, added to the pressure. The 30-share Sensex tanked 1,176.46 points or 1.49 per cent to end at 78,041.59. The Nifty fell 364.20 points or 1.52 per cent to 23,587.50.</p>.<p>In the past five days, the Sensex has dropped 4,091.53 points or 4.98 per cent, and the Nifty has fallen 1,180.8 points or 4.76 per cent. Investors on Sensex have seen about Rs 18.43 lakh crore wiped out in the five trading sessions this week.</p>.<p>“Disappointment regarding the slower-than-anticipated rate cuts by the US Fed has adversely affected global market sentiment. This bearish outlook is particularly impacting the domestic market, which is already contending with high valuations & low earnings growth,” said Vinod Nair, Head of Research, Geojit Financial Services.</p>.<p>While the Fed cut rates by an expected 25 basis points on December 18, it projected two rate cuts in 2025, as opposed to an anticipated four, leading to a global rout in the markets.</p>.<p>“The sell-off has been widespread, with significant declines in mid- and small-cap stocks, where valuation premiumisation is at historical peak. The IT sector is notably underperforming as it was amongst the best performers in anticipation of rapid rate cuts in 2025,” Nair said.</p>.<p>The BSE midcap gauge slipped 2.43 per cent, and the smallcap index dropped 2.11 per cent.</p>.<p>In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower. Equity markets in Europe were trading in the negative territory. Wall Street ended on a mixed note on Thursday.</p>.<p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,224.92 crore on Thursday, according to exchange data.</p>
<p>Bengaluru: The markets slumped for the fifth straight day, in what was the worst weekly decline on Dalal Street in five weeks. </p><p>On Friday, <a href="https://www.deccanherald.com/tags/bse-index">BSE </a>Sensex and <a href="https://www.deccanherald.com/tags/nse">NSE </a>Nifty both slumped around 1.5 per cent, on the back of risk aversion in the global bourses caused by the United States Federal Reserve’s hawkish outlook on interest rate cuts.</p>.<p>Meanwhile, the rupee recovered slightly from its record lows but still stayed above 85 to a dollar, ending the day at 85.03. Data from the Reserve Bank of India (RBI) showed that India’s foreign exchange reserves dropped by nearly $2 billion to $652.87 billion for the week ended December 13. The drop has been attributed to revaluation, along with forex market interventions by RBI to help reduce volatilities in the rupee.</p>.Zomato shares climb nearly 4% on BSE Sensex inclusion.<p>On Dalal Street an across-the-board selloff in equity markets, amid unabated selling by foreign investors, added to the pressure. The 30-share Sensex tanked 1,176.46 points or 1.49 per cent to end at 78,041.59. The Nifty fell 364.20 points or 1.52 per cent to 23,587.50.</p>.<p>In the past five days, the Sensex has dropped 4,091.53 points or 4.98 per cent, and the Nifty has fallen 1,180.8 points or 4.76 per cent. Investors on Sensex have seen about Rs 18.43 lakh crore wiped out in the five trading sessions this week.</p>.<p>“Disappointment regarding the slower-than-anticipated rate cuts by the US Fed has adversely affected global market sentiment. This bearish outlook is particularly impacting the domestic market, which is already contending with high valuations & low earnings growth,” said Vinod Nair, Head of Research, Geojit Financial Services.</p>.<p>While the Fed cut rates by an expected 25 basis points on December 18, it projected two rate cuts in 2025, as opposed to an anticipated four, leading to a global rout in the markets.</p>.<p>“The sell-off has been widespread, with significant declines in mid- and small-cap stocks, where valuation premiumisation is at historical peak. The IT sector is notably underperforming as it was amongst the best performers in anticipation of rapid rate cuts in 2025,” Nair said.</p>.<p>The BSE midcap gauge slipped 2.43 per cent, and the smallcap index dropped 2.11 per cent.</p>.<p>In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower. Equity markets in Europe were trading in the negative territory. Wall Street ended on a mixed note on Thursday.</p>.<p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,224.92 crore on Thursday, according to exchange data.</p>