Sensex plunges 879 pts as Fed rate hike floors global markets
Mumbai, December 15
The Sensex plummeted 879 points while the Nifty crashed below the 18,415- mark on Thursday, in tandem with a global selloff after the US Federal Reserve increased the interest rate and signalled more hikes in its fight against inflation. A depreciating rupee added to the gloom, traders said.
Reversing its two-day winning run, the BSE Sensex tanked 878.88 points to finish at 61,799.03. The NSE Nifty plummeted 245.40 points to end at 18,414.90.
Tech Mahindra biggest loser
- Reversing its two-day winning run, the BSE Sensex tanked 878.88 points to finish at 61,799.03. The NSE Nifty plummeted 245.40 points to end at 18,414.90
- Tech Mahindra was the biggest laggard among Sensex components, tumbling 3.98%, followed by Infosys, Titan, HDFC, ITC, HDFC Bank, Tata Steel and TCS
- Only Sun Pharma and NTPC managed to close in the green, rising up to 0.08%
Tech Mahindra was the biggest laggard among Sensex components, tumbling 3.98%, followed by Infosys, Titan, HDFC, ITC, HDFC Bank, Tata Steel and TCS.
Only Sun Pharma and NTPC managed to close in the green, rising up to 0.08%.
The US Fed on Wednesday increased interest rates by 50 basis points on expected lines and signalled more hikes ahead to fight inflation even as the world’s largest economy stares at a possible recession. The US central bank raised the interest rate to 4.25-4.50% to the highest level in 15 years.
“The Fed has startled the market by maintaining its hawkish tone, as investors were expecting a softer approach after the release of better-than-expected inflation numbers. Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong ended lower.
Equity exchanges in Europe were trading in the red in mid-session deals. The US markets had ended in the negative territory on Wednesday.
“The US Fed effect led to a massive selloff in the markets as banking, IT, metal and realty stocks received severe pounding at the hands of investors,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
“Markets were disappointed after the Fed indicated that the rate hike regime would continue next year, which further accentuated the already fragile market sentiment prompting investors to trim their equity exposure,” he added.
