Sensex Drops 300 Points, Nifty Below 15,700
By Administrator_ India
The Indian equity benchmarks staged a gap-down opening on the back of weak global cues after US Federal Reserve stunned investors by signaling it might raise interest rates at a much faster pace than assumed, sending bond yields and the dollar sharply higher. The Sensex fell as much as 402 points and the Nifty 50 index fell below its important psychological level of 15,700.
As of 9:21 am, the Sensex was down 270 points at 52,231 and the Nifty 50 index slipped 82 points to 15,685.
The Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying, and said the 15-month-old health emergency was no longer a core constraint on US commerce.
Back home, selling pressure was broad-based as nine of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Financial Services index’s nearly 1 percent fall. Nifty Bank, Metal, Pharma, and Private Bank indices also fell between 0.4-0.7 percent.
On the other select media and realty shares were witnessing buying interest.
Mid- and small-cap shares were trading on a mixed note as Nifty Midcap 100 index fell 0.2 percent while the Nifty Smallcap 100 index advanced 0.13 percent.