‘Sensex’ falls for three centuries due to ‘Fed’s interest rate hike’

Mumbai Major stock market indices fell on Thursday amid aggressive interest rate hikes and geopolitical tensions by central banks across the world, including the US. The US Federal Reserve on Wednesday raised interest rates by half a percentage point and is expected to raise interest rates by another 1.25 per cent in its next two policy meetings this year.

The Bombay Stock Market Index Sensex closed 337.06 per cent lower at 59,119.72 at the end of the day. This is the third consecutive session of decline in the Sensex. At one point, it also declined by 624 degrees to reach an intra-day low of 58,832.78. At the same time, the national stock market index Nifty closed 88.55 points down at 17,629.80.

The satisfactory progress of the economy domestically did not result in any major downturn in the capital market. However, further depreciation of the rupee against the dollar will make the domestic capital market less attractive to foreign institutional investors, which will impact the performance of the market, said Vinod Nair, Head of Research, Geojit Financial Services.

Power Grid, HDFC Bank, HDFC, Axis Bank, Bajaj Finsar, ICICI Bank and UltraTech Cement were the top gainers in the Sensex. On the other hand, Titan, Hindustan Unilever, Asian Paints, Maruti and ITC were the top gainers.

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