Sensex dips 218 points, Nifty by 76 on Federal Reserve Board action

MUMBAI: Stocks spiralled

lower for the second straight session Thursday after the US Fed hiked interest rates and struck a hawkish stance amid rising crude oil prices.

The BSE Sensex tumbled 218.10 points to 36,324.17, while the NSE Nifty dropped 76.25 points to finish below the 11,000-mark.

Moreover, September futures and options (F&O) expiry added to market volatility as investors offloaded their

long bets instead of carrying them forward to the next series for October, brokers said.

Participants remained cautious after the government increased import duties on select goods to stem the rupee's fall and the RBI announced measures to ease liquidity concerns.

Global markets reeled after the US Fed raised interest rates for the third time this year Wednesday and said it foresees another rate hike in December, three more next year, and one in 2020. The BSE benchmark Sensex, after opening positive, advanced to a high of 36,711.62 on covering-up of short positions in select stocks.

However, it slipped to a low of 36,238.23 in late-afternoon trade, before finally finishing at 36,324.17, down 218.10 points, or 0.60 per cent.

The NSE Nifty declined 76.25 points, or 0.69 per cent, to end at 10,977.55. Intra-day, the 50-share index shuttled between 11,089.45 and 10,953.35.

Meanwhile, foreign portfolio investors (FPIS) sold shares worth a net Rs 809.95 crore, while domestic institutional investors (DIIS) bought equities to the tune of Rs 1,555.44 crore Wednesday, as per provisional data. In Asian trade, stocks gave up earlier gains as investors considered the prospects of more US interest rate hikes amid US President Donald Trump's latest broadside in his trade war with China.