Millennium Post

Sensex tumbles by 244 points on Fed rate hike worry, China factory data

Logging their worst drop in over five weeks, Sensex on Monday fell 244.48 points to end at below 27,000 mark and Nifty slid 63.50 points to below 8,100 level on US rate hike fears and tepid China data, despite domestic inflation in August easing to nearly five-year low.

Wary market participants preferred to book profits as they expected early hike in interest rates by the US Federal Reserve. Higher US rates is likely to trigger capital outflows in emerging markets, including India. Fed’s two-day policy setting meeting starts from Tuesday.

Metal shares suffered the most after lacklustre Chinese factory output indicated slowdown in world’s second biggest economy. Asian markets also retreated reacting to China data. Refinery, IT, capital goods and FMCG stocks in Indian markets also attracted profit-booking while some of the pharma and realty counters closed with gains, said traders. Today’s drop is its worst fall since 8 August, 2014.
Similarly, the 50-issue National Stock Exchange (NSE) Nifty also dipped by 63.50 points or 0.78 per cent, also its biggest loss since August 8, to two-week low levels of 8,042.

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