Indian stock markets plunged sharply on Thursday, following a global sell-off triggered by the US Federal Reserve’s decision to scale back its rate cut projections for 2025. The Nifty 50 index dropped over 1.33 per cent, or 321 points, opening at 23,877.15, while the BSE Sensex plummeted by 1,153.17 points, or 1.44 per cent, to start at 79,029.03.

The significant fall in Indian markets was driven by the global reaction to the US Federal Reserve's altered stance on interest rates. Previously, the market had anticipated more aggressive rate cuts in 2025, which were expected to stimulate economic growth and address inflation. However, the Fed’s more cautious approach has led to a ripple effect across international markets, creating a wave of selling pressure.