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    Sensex tanks over 1,700 pts in 3 days as fear of steep rate hikes rattles global markets

    Sensex tanks over 1,700 pts in 3 days as fear of steep rate hikes rattles global markets

    Sensex tanks over 1,700 pts in 3 days as fear of steep rate hikes rattles global markets
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    By Sandeep Singh   IST (Published)


    The Sensex and the Nifty50 continued to fall for the third day in a row tracking global markets, as macro data from the world's largest economy stoked fear the Fed may continue with aggressive rate hikes.

    Indian equity benchmarks tumbled amid a broad-based sell-off on Friday, as after data from the world's largest economy once again stoked fears the Fed has little reason to ease a cycle of hikes in COVID-era interest rates. Both headline indices finished near their lowest levels of the day after falling around two percent each during the session.
    The Sensex plunged to as low as 58,687.2 during the session, shedding 1,246.8 points from its previous close. The 30-scrip index took its losses to 1,730.3 points in three back-to-back sessions.
    The Nifty50 shed 380.2 points to hit 17,877.4 at its intraday low.
    Barring IndusInd and Cipla, which rose 2.5 percent and one percent respectively, all of the Nifty50's constituents finished the day below the flatline.
    UPL, Tata Consumer Products, Tech Mahindra, UltraTech and Infosys were the top laggards.
    Grasim, Hero MotoCorp, HDFC Life, Mahindra & Mahindra, Bharat Petroleum, Tata Motors and Wipro — falling around 3-4 percent each — were also almost the worst-hit blue-chip stocks.
    Reliance, Infosys and the HDFC twins were the biggest drags on the market, accounting for more than half of the plunge in Sensex.
    Vedanta shares slumped 7.5 percent after the company said the proposed semiconductor business will be undertaken by its holding company, Volcan Investments. Reports had said that Vedanta would open a chip plant in Gujarat with Foxconn and launch the product in two years.
    "With persistent bearish pressure from global stocks amid rising yields and the dollar index, the domestic market surrendered to the trend despite its strong decoupling scenario and encouraging macroeconomic data," said Vinod Nair, Head of Research at Geojit Financial Services.
    Retail sales in the US unexpectedly rebounded in August, according to data released on Thursday, but a reading for the previous month was revised lower to show a decline from no change reported previously.
    Separately, initial jobless claims fell for the week ended September 10 to the lowest level since May-end.
    "After the release of US inflation data, which showed a sequentially worsening rise in consumer prices, the global market has been pricing in the likelihood of a more aggressive policy response from the Fed," Nair added.
    Overall market breadth was strongly in favour of the bears, as 972 stocks rose and 2,532 fell on BSE.
    The rupee inched lower against the US dollar. It is now 0.4 percent above a lifetime low hit late last month.
    Global markets
    European markets began the day with sharp losses, mirroring the trend in Asia, after recession warnings from the IMF and the World Bank. The pan-European Stoxx 600 index was down one percent at the last count.
    S&P 500 futures were down 0.7 percent, suggesting a weak opening ahead on Wall Street.
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