Millennium Post

Sensex dips by 208 points on fears of US Fed raising rates

As expected, the research elevated hopes that the Fed could signal an earlier-than-expected hike in rates at their policy-setting meeting on 16-17 September, which might force foreign funds to withdraw investments from emerging markets, including India, and invest in US.

Despite sharp fall in the sensex, total market breadth was positive on consistent buying by retail investors in second-line stocks.

Selling mainly heavyweights like ITC, Infosys, RIL, HDFC, L&T, HDFC Bank and TCS kept the market under pressure.

Shares from consumer durable, oil & gas, FMCG, IT and capital goods segments suffered losses while some shares from realty and power attracted buying. Among top heavyweight and cigarettes, tobacco product giant ITC was second top loser from the sensex pack after Hero MotoCorp (-2.44 per cent) and was the major contributer to Sensex fall on news that the government is considering a ban on the sale of loose cigarettes and tougher tobacco regulations.

The BSE 30-share barometer resumed slightly lower and remained in negative terrain throughout the day to settle at 27,057.41, a steep fall of 207.91 points or 0.76 per cent. The 50-issue CNX Nifty of the NSE also tumbled by 58.85 points or 0.72 per cent to end at 8,094.10.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 479.40 crore on Tuesday, as per provisional data from the stock exchanges.
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