 "Markets slump on US Fed tapering fears")
Markets world over plunged after minutes of US Federal Reserve's last meeting were made public late Wednesday. Investor sentiment was hit adversely after minutes from the Federal Reserve's last meeting signaled US stimulus may be reduced in coming months. The US central bank currently buys bonds worth $85-billion-a-month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy.
Last week, the sentiment was boosted after US Federal Reserve's incoming boss Janet Yellen, said the US economy and labour markets were functioning “far short of their potential and had to improve before the stimulus programme could be rolled back". According to some this abberetion from earlier stance signals a duality in Fed's stance on tapering.
Experts are of the view that market participants are reading far too much into the Fed minutes as they offer nothing new and merely talk of an impending taper. Markets falling worldwide
At 3:30pm, the Sensex was down 372 points at 20,262 and the Nifty gave up 115 points to close at 6,007 levels.
Broader markets cracked too with small-cap and mid-cap indices falling between 0.8-1% on the BSE.
All sectors closed in red with Capital goods leading the fall; followed by Banks, realty, PSUs and Power indices on the BSE sectoral indices.
Top Sensex losers were ITC, HDFC, Reliance, Infosys, ICICI Bank and L&T.
Last week, the sentiment was boosted after US Federal Reserve's incoming boss Janet Yellen, said the US economy and labour markets were functioning “far short of their potential and had to improve before the stimulus programme could be rolled back". According to some this abberetion from earlier stance signals a duality in Fed's stance on tapering.
Experts are of the view that market participants are reading far too much into the Fed minutes as they offer nothing new and merely talk of an impending taper. Markets falling worldwide
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Key benchmark indices continued heading southwards since the start weighed down by financials, capital goods and IT shares.
At 3:30pm, the Sensex was down 372 points at 20,262 and the Nifty gave up 115 points to close at 6,007 levels.
Broader markets cracked too with small-cap and mid-cap indices falling between 0.8-1% on the BSE.
All sectors closed in red with Capital goods leading the fall; followed by Banks, realty, PSUs and Power indices on the BSE sectoral indices.
Top Sensex losers were ITC, HDFC, Reliance, Infosys, ICICI Bank and L&T.