GIFT Nifty falls 300 points after Wall Street sell-off, indicating more pain for Sensex, Nifty

The GIFT Nifty, an indicator of how the Indian equity markets are likely to open in today’s trading session are currently down by 320 points as of 7:15 AM, indicating a gap-down start for the Sensex and the Nifty 50.

The Nifty 50 is already coming on the back of a three-day losing streak during which it has shed 550 points and nearly gave up last Friday’s low of 24,190 on Wednesday. Today is also the weekly options expiry of the Nifty 50 contracts.

Today’s gap down comes on the back of a sharp sell-off on Wall Street, where the Dow Jones fell for the 10th day running, its longest losing streak since 1974. The sell-off came after the US Federal Reserve cut interest rates by 25 basis points on expected lines but reduced its 2025 rate cut outlook to two cuts from four earlier.

The move sparked a sharp sell-off across asset classes. Gold prices fell to a one-month low, Bitcoin prices fell, the 10-year treasury yield in the US is back above 4.5%, while the US Dollar is back at the highest level since November 2022. The US Dollar index is now at the level past 108%.

A 320-point down tick at the start of trade would mean that the Nifty will open below the 24,000 mark, even below 23,900. It remains to be seen whether support emerges at lower levels considering the setups are already oversold. The Nifty 50’s Put-Call Ratio is now down to 0.55 from 0.64 earlier.