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Sensex falls 773 points, Nifty ends below 17,400 as Fed rate hike fears return

Sensex falls 773 points, Nifty ends below 17,400 as Fed rate hike fears return

Sensex closed 773 points lower at 58,153 and Nifty lost 231 points to end at 17,374. Tech Mahindra, Infosys and HCL Tech were the top Sensex losers, falling up to 2.94%.

On the sectoral front, IT, consumer durables, and banking stocks led the losses today with their BSE indices falling 895 points, 990 points and 595 points, respectively. On the sectoral front, IT, consumer durables, and banking stocks led the losses today with their BSE indices falling 895 points, 990 points and 595 points, respectively.

Indian market halted its three-day winning streak today as sentiments turned nervous on global bourses amid fears of an aggressive rate hike by the Federal Reserve.

Sensex closed 773 points lower at 58,153 and Nifty lost 231 points to end at 17,374.

Tech Mahindra, Infosys and HCL Tech were the top Sensex losers, falling up to 2.94%.  Of 30 Sensex stocks, 25 ended lower.

IndusInd  Bank, Tata Steel, NTPC, M&M and ITC were the only gainers, rising up to 0.94%.

BSE mid cap and small cap indices fell 453 points and 554 points, respectively.

On the sectoral front, IT, consumer durables, and banking stocks led the losses today with their BSE indices falling 895 points, 990 points and 595 points, respectively.

Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities said, "The rising US inflation has raised concerns that the Federal Reserve could soon initiate its rate hike decision, which created a lot of uncertainty among the global investors, including India. The Nifty took support near 17050 but failed to sustain above the 20 day SMA which is broadly negative. Technically, the index is witnessing non directional activity near the 50 day SMA. However, on daily and weekly charts, it is holding higher bottom formation but at the same is consistently facing resistance at 20 day SMA. Hence, the market is likely to maintain non directional activity in the near future. The immediate support would be 17300-17250 while 17600 and 17700 would act as a crucial hurdle for the bulls."

The market breadth was negative with 932 shares ending higher against 2,378 stocks in the red. 98 shares were unchanged.

Market cap of BSE-listed firms declined to Rs 263.89 lakh crore against Rs 267.77 lakh crore in the previous session.

In the previous session, Indian market surged amid positive global cues. Sensex closed 460 points higher at 58,926 and Nifty rose 142 points to end at 17,605.

Tata Steel was the top Sensex gainer, rising 2.11 per cent, followed by Infosys, HDFC Bank, HDFC and Kotak Mahindra Bank.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,732 crore on Thursday, according to stock exchange data.

Global markets

Benchmarks fell in London, Paris and Hong Kong and U.S. futures also were lower. Markets in Japan were closed for a holiday. The Dow Jones Industrial Average fell 1.5% and the Nasdaq composite slid 2.1%. The Russell 2000 small cap index dropped 1.6%.

Germany's DAX lost 0.9% to 15,352.78 and the CAC 40 in Paris gave up 1.2% to 7,017.53. Britain's FTSE 100 fell 0.9% to 7,603.97. The future for the Dow industrials lost 0.5% while the contract for the S&P 500 was down 0.6%.

In Asia, Hong Kong's Hang Seng slipped 0.1% to 24,906.66, while in Sydney, the S&P/ASX 200 lost 1% to 7,217.30. The Kospi in Seoul dropped 0.9% to 2,747.71. Shanghai gave up early gains, sinking 0.7% to 3,462.95.