Indian mkts join global selloff as Fed hints at fewer rate cuts

Mumbai

Equity benchmark Sensex on Thursday plunged about 965 points to crash below the 80,000 level due to heavy selling in global equities after the US Federal Reserve signalled fewer rate cuts next year.

Besides, deep losses in consumer durables, banking and IT stocks amid foreign fund outflows added to the gloom, analysts said.

Falling for the fourth day running, the 30-share BSE benchmark Sensex tanked 964.15 points or 1.20 per cent to settle at 79,218.05. During the day, the blue-chip index cracked 1,162.12 points or 1.44 per cent to 79,020.08.

As many as 2,315 stocks declined while 1,680 advanced and 100 remained unchanged on the BSE.

The NSE Nifty tumbled 247.15 points or 1.02 per cent to sink below the 24,000 mark at 23,951.70.

"Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt. However, the BoJ's decision to keep its interest rate steady, which surprised economists, aided in reducing the selling pressure. Despite this, investor caution persisted amid ongoing FII selling, with a strategic shift towards defensive sectors like pharma as evidenced by their outperformance," Vinod Nair, Head of Research, Geojit Financial Services, said.

From the 30 blue-chip pack, Infosys, Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance Industries, Tata Consultancy Services, Infosys, Tata Motors and Mahindra & Mahindra were the biggest laggards.

On the other hand, Sun Pharma, Power Grid and Hindustan Unilever were the gainers.

"Markets were plundered tracking negative global cues. Rising US bond yields have pushed global currencies, including the rupee to new lows, while renewed foreign fund outflows from domestic equities could prompt investors to turn risk averse," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Investors lose `9.65 lakh cr in four days of market sell-off

Investors' wealth eroded by Rs 9.65 lakh crore in four days of sharp decline in the equity market where the BSE benchmark Sensex tanked 2,915 points. In past four days, Sensex slumped 2,915.07 points or 3.54 per cent. 

 The rupee dropped 14 paise and breached the crucial 85 level to close at an all-time low of 85.08 (provisional) against the US dollar on Thursday.

BSE midcap gauge declined 0.30 per cent and smallcap index dipped 0.28 per cent. BSE Focused IT tanked 1.20%, consumer durables (1.15%), IT (1.13%), capital goods (1.07%), teck (1.05%) and financial services (1.05%).