Monday, 12 September 2016

Sensex dives 444 points on US Fed rate hike concerns

The BSE Sensex plunged by 444 points on Monday— its biggest single-day drop since the Brexit fallout on June 24 — to end at nearly two-week low of 28,353.54 and the NSE Nifty went below 8,800-mark, tracking global meltdown due to heightened fears over US interest rate hike.

Market sentiment was weighed down by weakness in global markets, triggered by renewed concerns of the US Federal Reserve raising interest rates this month.
36744_l_sensex

Equity brokers said concerns inflows to emerging markets will be curtailed if the US raised interest rates, leading to fall in banking as well as metal stocks.

Investors also turned cautious ahead of macroeconomic data — IIP for July and inflation data for August — scheduled to be released later in the day.

The rupee depreciating by 28 paise to 66.96 against the dollar (intra-day) at the forex market also hit the sentiment.

Globally, Asian and European stocks tumbled, extending last week's sell-off hit by fears that the US Federal Reserve could be closer to an interest rate hike.

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