Indices tumble as mkts reel from Fed’s outlook

The benchmark equity indices snapped a two-session rising streak to close with sharp losses on Thursday, in lockstep with global markets, which recoiled after sobering economic assessment by the US Federal Reserve (US Fed).

A weakening rupee and lack of fresh buying triggers further weighed on market mood, traders said.

The Sensex opened lower and stayed in the negative zone throughout the session. It finally finished at 38,979.85, down 323 points, or 0.82 per cent. Similarly, the Nifty shed 88.45 points, or 0.76 per cent, to close at 11,516.1.

Bajaj Finserv was the top laggard in the Sensex pack, slipping 2.23 per cent, followed by Powergrid, L&T, TCS, ICICI Bank, Kotak Bank, Tata Steel, and Bajaj Finance.

On the other hand, HCL Tech, Infosys, and Maruti finished with gains of up to 2.36 per cent.

Global equities swooned after the US Fed did not unveil any additional stimulus measures at its policy meet, even though it hinted at the key interest rate staying close to zero at least through 2023.

Federal Reserve Chairman Jerome Powell also said the economic outlook is “highly uncertain”, stoking fears of more pain in store for businesses.

"Indian markets reacted in sync with global markets, after the US Fed failed to keep up with the expectations of the investors. Continued border tensions with China also worried Indian markets. Markets are expected to remain uncertain and investors advised to remain cautious,” said Vinod Nair, head of research at Geojit Financial Services.

BSE realty, metal, bankex, capital goods, finance, power, and utilities indices dropped as much as 1.87 per cent, while healthcare, IT, and teck closed in the green.