NIFTY SLIPS BELOW 11,000

US Fed’s rate hike hits sentiment, cautious traders offload long- term bets ■

Mumbai, Sept. 27: Stocks spiralled lower for the second straight session Thursday after the US Federal Reserve 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 on 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 coveringup of short positions in select stocks.

However, it slipped to a low of 36,238.23 in lateafternoon trade, before finishing at 36,324, down 218.10 points. The NSE Nifty declined 76.25 points, or 0.69 per cent, to end at 10,977.55.

Meanwhile, FPIs sold shares worth a net ` 809.95 crore, while domestic institutional investors bought equities to the tune of ` 1,555 crore Wednesday, as per provisional data.

“Raising of import duty for essential goods, liquidity constrains with NBFC and F& O expiry added volatility in the market. This pressure is likely to continue till the financial market stabilises,” said Vinod Nair, Head of Research, Geojit Financial Services.