Indian markets join global selloff as US Fed indicates 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.

In the past four days, the BSE benchmark tanked 2,915.07 points or 3.54 per cent and the Nifty declined 816.6 points or 3.29 per cent.

Tracking the weak trend in equities, the market capitalisation of BSE-listed firms eroded by Rs 9,65,935.96 crore to Rs 4,49,76,402.63 crore ($5.29 trillion) in four days.

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 as benchmark indices slipped below their psychological levels on broad-based selling after the US Fed’s hawkish stance raised concerns over further rate cuts next year. 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.

The BSE midcap gauge declined 0.30 per cent and smallcap index dipped 0.28 per cent.

Among sectoral indices, BSE Focused IT tanked 1.20 per cent, consumer durables (1.15 per cent), IT (1.13 per cent), capital goods (1.07 per cent), tech (1.05 per cent) and financial services (1.05 per cent). BSE Healthcare emerged as the only gainer.

FIIs offloaded equities worth Rs 1,316.81 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude dipped 0.08 per cent to $73.33 a barrel.