Sensex tanks 323 pts on weak global cues; Nifty below 11,550
Mumbai: Equity indices snapped a two-session rising streak to close with sharp losses on Thursday, in lockstep with global markets which recoiled after sobering economic assessment by the US Federal Reserve.
A weakening rupee and lack of fresh buying triggers further weighed on market mood, traders said.
The 30-share BSE Sensex opened lower and stayed in the negative zone throughout the session. It finally finished at 38,979.85, down by 323 points or 0.82 per cent.
Similarly, the NSE Nifty shed 88.45 points or 0.76 per cent to close at 11,516.10.
Bajaj Finserv was the top laggard in the Sensex pack, slipping 2.23 per cent, followed by PowerGrid, L&T, TCS, ICICI Bank, Kotak Bank, Tata Steel and Bajaj Finance.
On the other hand, HCL Tech, Infosys and Maruti finished with gains of up to 2.36 per cent.
Global equities swooned after the US Federal Reserve did not unveil any additional stimulus measures at its policy meet, even though it hinted at the key interest rate staying close to zero at least through 2023.
Federal Reserve Chairman Jerome Powell also said the economic outlook is "highly uncertain", stoking fears of more pain in store for businesses.
"Indian markets reacted in sync with global markets, after the US Fed reserve failed to keep up with the expectations of the investors. In spite of pledging to keep interest rates low, markets were disappointed on the lack of further inputs or immediate stimulus measures.
"Continued border tensions with China also worried Indian markets. Markets are expected to remain uncertain and investors advised to remain cautious," said Vinod Nair, Head of Research at Geojit Financial Services.
BSE realty, metal, bankex, capital goods, finance, power and utilities indices dropped as much as 1.87 per cent, while healthcare, IT and teck closed in the green.
Broader BSE mid-cap and small-cap indices fell up to 0.53 per cent.
Meanwhile, global oil benchmark Brent crude was trading 0.26 per cent lower at $42.11 per barrel.
The rupee depreciated 14 paise to close at 73.66 against the US dollar.
