Jerome Powell, chairman of the US Central Bank of Federal Reserve, clarified its stand on the reduction in interest rate. He indicated on 11 February that he is not in a hurry to reduce interest rates. This directly affected the bond yield. On February 12, there was a bounce in the Bond Yield in the Asian markets. Indian stock markets saw a major decline. Sensex and Nifty are under heavy pressure. Smallcap and midcap stocks show a major decline.
Inflation data will come in America today
Powell (Jerome power)) He told the US Congress that the Federal Reserve (Federal reserve) It is not too early to reduce the interest rate. He also indicated a similar indication in January. Jerome Powell wants to wait for the inflation to decrease and decrease after decreasing the interest rate for three consecutive times in 2024. Experts say the Federal Reserve also wants to wait for the new US President Donald Trump to clear the picture regarding the economic policy. Meanwhile, the eyes are on the data of inflation in the US. Inflation data is coming on 12 February.
Investment attraction in bonds may increase
After the statement of the chairman of the Federal Reserve, there has been a bounce in the yield of Bonds (Treasury) in the US. This means that investment in bonds will earn well. This can increase investment in American investors bonds. Instead of investing in stock markets like India, they may find it beneficial to invest in American bonds. Foreign investors are already selling continuously in Indian stock markets. If they increase selling in Indian markets to increase investment in American Treasury, then Sensex and NIFTY may decline a major decline.
Sensex and Nifty Crash
On February 12, there is a major decline in Indian stock markets. The Sensex and Nifty started falling as soon as the markets opened. At 10 o’clock, the Nifty fell 1 percent i.e. 241 points to 22,832. Sensex was also running at 75,350 points after crashing 800 points i.e. 800 points. Bank Nifty crashed more than 1.11 percent. This is a sign of increasing pressure on Indian markets. This is the decline of the third day this week. On February 11, there was a major decline in the Indian markets.
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Smallcap and midcap stocks declined more
There is more pressure on smallcap and midcap stocks. BSE Midcap and BSE Smallcap index are visible under more than 2-3 percent pressure. This is a matter of concern, as midcap and smallcap stocks have high stake in most retail investors portfolio. He had invested excessively in midcap and smallcap for more returns. The midcap index has fallen by more than 18 per cent from its high September last year. The Nifty Smallcap index has fallen more than 20 per cent of its peak in December 2024.