Closing Bell: US Fed hike dents Indian market; Nifty touches 52-week low
Domestic equity bourses Sensex and Nifty 50 after a gap-up opening suffered deep cuts in Thursday's trading session as nervousness sets in among participants globally due to the 75 bps hike invoked by Fed.
Indian equity market witnessed carnage and crashed for the fifth straight session after opening higher, after the US Federal Reserve's biggest rate hike since 1994 came into action.
In overnight trading, Wall Street rallied after the FOMC decision. However, the initial relief was diminished as the rate hike began to fade into an aggressive outlook. The markets had already anticipated the Fed's 75 basis point hike on Wednesday after a hot inflation reading last week. Owing to these developments headline indices witnessed a sharp fall and finished at a fresh 52-week low.
At the closing bell on June 16, the Sensex was down 1,045.60 points or 1.99% at 51,495.79, and the Nifty was down 331.60 points or 2.11% at 15,360.60. On the market breadth, 607 shares have advanced, 2680 shares declined, and 97 shares are unchanged.
Top Nifty losers today include Hindalco Industries, Tata Steel, Coal India, Tata Motors and ONGC, while gainers were HUL, Nestle India and Britannia Industries. Index heavyweights like Wipro, Tech Mahindra, Tata Steel and Infosys were among the Nifty 50 stocks to hit a 52-week low today. On a bleeding day, all the sectoral indices closed in the red with the metal index falling over 5%. In the broad markets, BSE midcap and smallcap indices shed over 2% each.
In further developments, the US Fed has also hinted that FOMC will keep increasing rates aggressively until the inflation is under control. US Fed Chair Jerome Powell asserted that another 75 bps to 50 bps rise could come in the next FOMC meeting.
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