Sensex drops more than 850 points on Fed’s hawkish tone; IT, financial stocks lag


Sensex drops over 850 points

Photo: BCCL

Mumbai: The BSE benchmark Sensex plunged more than 861 points to settle below the key 58,000 level on Monday on hectic selling mainly in IT and financial stocks as the ultra-hawkish tone of the Federal Reserve spooked investors around the world.

Starting well below the 57,400 level, the 30-stock BSE gauge fell over 1,466 points during the day. The Sensex eventually closed 861 points or 1.46% lower at 57,973.

Similarly, the NSE Nifty fell 246 points or 1.40% to close the session at 17,313 – recording a second consecutive session of gains.

Related News

Sensex tumbles over 1,200 Nifty points down 2 amid selling off Asian peers after Fed warns of more pain

Sensex tumbles over 1,200 points, Nifty down 2% amid selloff from Asian peers after Fed warns of ‘more pain’

Indices start on a positive note Sensex jumps 500 points following global peers Nifty above 17650

The indices start on a positive note; Sensex jumps 500 points trailing global peers, Nifty above 17,650

On the Sensex chart, IT stocks Tech Mahindra, Infosys, Wipro, HCL Tech and TCS were the biggest losers, losing as much as 4.57%.
On the other hand, Maruti Suzuki, Nestle Industries, Asian Paints, ITC, M&M and HUL were among the main winners.

The Sensex breadth was comfortably in favor of the sellers as 22 stocks closed in the red.

Shares of Reliance Industries — which held its 45th AGM on Monday and announced a series of high-profile announcements — failed to enthuse investors and fell 0.84%.

“Powell’s hawkish tone at the Jackson Hole symposium signaled a tougher rate hike as investors expected softer policy action following the release of the weaker inflation reading in July. That increased concerns about an economic downturn, which caused a sell-off in the US market and spillovers to markets around the world,” said Vinod Nair, head of research at Geojit Financial Services.

The sell-off in emerging markets like India has been exacerbated by concerns over the possible withdrawal of foreign funds, which has been the backbone of the market’s recent rally, he added.

Globally, stocks fell on Monday as the growing risk of more aggressive interest rate hikes in the United States and Europe inflicted further pain on bond markets and pushed the dollar to new 20-year highs. years, just as fears of recession are growing.

Federal Reserve Chairman Jerome Powell, speaking at the Jackson Hole symposium on Friday, said the Fed would raise rates as high as necessary to limit growth and hold them “for a while” to lower the economy. inflation well above its target of 2%.

Comments are closed.