US Fed rate hike worries pull down global markets
Picture for representational purpose
Mumbai: The Nifty sank below the 8,000 mark to close at 7,932.90 down 109.10 points while the Sensex fell again below the 27,000 level to 26,492.51 down 324.05 points, their worst single day drop in seven weeks. Weak global cues on concerns about what decision the US Fed takes on hiking interest rates at its two-day meeting under way in Washington, saw the Indian markets plummet in tandem with the Asian and European markets.
This week is turning out to be a terrible one for the stock market in India said Amar Ambani Head of Research IIFL. “Going ahead, the near term support for the Nifty is placed at its 50 day moving average i.e the 7815 mark. A breach below the given level, could see selling pressure intensify further,” he added.
Not a single sectoral index on the BSE managed to close with gains. The realty index was the top loser followed by BSE Power, Metals, Oil & Gas and the Banking indices, he added. Apart from the index heavyweights, even the broader indices saw a blood bath as the BSE Mid-Cap and the Small-Cap index both lost over 3.5 per cent each.
Shrikant Chouhan, Kotak Securities, said that the basic trend of the market is still bullish the loss of over 100 points on the Nifty and over 300 points on Sensex was mainly due to weak global cues especially in the Asian markets. The domestic data like CPI and IIP were also not up to expectations and triggered weakness in the market.”
( Source : dc correspondent )
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