At 13:30 IST, the barometer index, the S&P BSE Sensex, tumbled 961.07 points or 1.20% to 79,221.13. The Nifty 50 index dropped 249.40 points or 1.03% to 23,949.45.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index slipped 0.44% and the S&P BSE Small-Cap index fell 0.43%.

The market breadth was weak. On the BSE, 1,553 shares rose and 2,322 shares fell. A total of 110 shares were unchanged.

Gainers & Losers:

Dr. Reddy's Laboratories (up 3.93%), Cipla (up 2.20%), BPCL (up 2.12%), Tata Consumer Products (up 0.63%) and Hero MotoCorp (up 0.57%) were major Nifty gainers.

Asian Paints (down 2.59%), Bajaj Finance (down 2.47%), Grasim Industries (down 2.39%), JSW Steel (down 2.35%) and Bajaj Finserv (down 2.34%) were the major Nifty losers.

Stocks in Spotlight:

Bank of Baroda shed 0.80%. The bank's board has approved to raise Rs 10,000 crore through long term bonds for financing of infrastructure and affordable housing in single or multiple tranches during the FY25.

FDC declined 0.42%. The company received final approval from US Food and Drug Administration (USFDA) for abbreviated new drug application for Cefixime 400 mg tablets. The FDA had inspected the company's manufacturing facility in Himachal Pradesh.

IOL Chemicals and Pharmaceuticals surged 8.30% after the company's board will meet on 27 December 2024, to consider stock split.

Spicejet jumped 7.73% after the company reached an amicable settlement with Genesis, resolving their over $16 million dispute.

Global Market:

The Dow Jones index futures were up 130 points, signaling a positive opening for U.S. stocks today.

European and Asian stocks dropped on Thursday, following the Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday, its third consecutive rate reduction. However, the Fed hinted at fewer rate cuts in 2025 due to persistent inflation and a resilient economy.

Investors are now focused on the Bank of Japan's policy decision later today. Market sentiment is divided over whether the bank will opt for a rate hike or maintain its current stance.

The Fed's rate cut brought the target range to 4.25%-4.50%. While Chair Jerome Powell emphasized that future rate reductions would depend on inflation progress, the central bank's updated economic projections suggest a less dovish stance than previously anticipated. Policymakers now foresee two 25-basis-point rate cuts next year, compared to the four cuts projected in September.

The Fed's projections also indicate that inflation remains above the 2% target. It expects inflation to be 2.4% this year and 2.5% next year. Additionally, the central bank forecasts slightly stronger economic growth and lower unemployment in 2025.

The prospect of higher-for-longer interest rates weighed heavily on Wall Street on Wednesday. Technology stocks bore the brunt of the sell-off, with NVIDIA, Tesla, Intel, and Broadcom experiencing significant declines.

The S&P 500 fell 3%, the NASDAQ Composite dropped 3.6%, and the Dow Jones Industrial Average declined 2.6%. The Dow's 10-day losing streak is its longest since 1974.

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