Equity market indices in India fell 2% on Thursday after the US Federal Reserve raised key rates by 75 basis points to tackle high inflation.
The S&P BSE Sensex ended 52-week low at 51,495.79, down 1,045.6 or 1.99%.
The biggest losers included Tata Steel (6.04%), Tech Mahindra (4.37%), Bharti Airtel (4.11%), Wipro (4.04%) and IndusInd Bank (3.96%).
The NSE Nifty-50 index also fell 331.55 points or 2.11% to 15,360.60.
“Initially, the benchmark opened with a rally in response to the rate hike by the US Fed, which came in line with expectations,” said Ajit Mishra, vice-president (research), Religare Broking. “However, it did not last long and gradually decreased as the day progressed,” he said.
“Markets are skeptical about how global economies will achieve growth amid aggressive tightening,” he said.
Vinod Nair, Head of Research, Geojit Financial Services, said: “The market is catching on to the reality that tight monetary policy is the only card on the table. [against] High inflation rests. As a result, the global economy is bound to slow down further affecting corporate earnings, as indicated by [month-on-month] US retail sales decline.”
“Valuations continue to trade at a slight upside of the longer-term average and FIIs continue to [remain in] sales mode. Stock trading at high valuations and sectors like IT and metals are the most affected,” he said.
The rupee on Thursday closed 12 paise higher at 78.10 against the US currency, tracking an overnight weakness in the dollar and fall in crude oil prices.
(with PTI inputs)