Sensex drops 879pts, Nifty near 18,400 on Fed's hawkish pivot; IT worst hit

CLOSING BELL: The 30-pack index had dropped over 900 points intra-day to hit a low of 61,715.61, while the 50-pack index hit a low of 18,388

CLOSING BELL

Stock market highlights: Sell-off in the equity markets intensified in late noon deals as investors dumped shares across sectors. Sentiment remained tepid across global markets after the US Federal Reserve (US Fed) hinted interest rates to peak above 5 per cent by the end of 2023. Moreover, the central bank raised interest rates by 50 basis points (bps) in its December meeting to 4.25-4.5 per cent, the highest since 2007.

The S&P BSE Sensex cracked 879 points, or 1.4 per cent, to settle at 61,799. The Nifty50, meanwhile, slipped below the 18,450 level to close at 18,415, down 245 points or 1.32 per cent.

ALSO READ: Sensex tumbles over 750 points: Top factors behind Thursday's market fall

The 30-pack index had dropped over 900 points intra-day to hit a low of 61,715.61, while the 50-pack index hit a low of 18,388. 

Only 2 stocks -- Sun Pharma and NTPC -- managed to held onto their gains on the Sensex, while five advanced on the Nifty, including Britannia Industries, Hero MotoCorp, SBI Life, and M&M.

In the broader markets, the BSE MidCap index declined by 1.05 per cent, while the BSE SmallCap index dipped 0.6 per cent.

Among sectors, the Nifty IT pack was the worst hit, down over 2 per cent. This was followed by the Nifty PSU Bank index (down 1.88 per cent). 

Global markets

Global stocks retreated Thursday as global markets dip following the US Federal Reserve's latest policy update. The pan-European Stoxx 600 was down 1.2 per cent in early trade, with retail stocks shedding 2 per cent to lead losses as all sectors and major bourses slid into negative territory.

In Asia, Nikkei, Kospi, and Hang Seng dropped up to 1.5 per cent. 

4:19 PM

NIFTY VIEW: Index moving closer to lower end of consolidation range at 18,300

With the minor degree bounce in the last couple of sessions, the Nifty had retraced 61.8% retracement of the previous decline.

The index formed a distribution near the key Fibonacci level throughout the day on December 14. Thereon the index nose dived on December 15.

Structurally, the index is moving down towards the lower end of the short term consolidation range i.e. 18300.

Buying support can be expected again near 18300. Overall, the short term consolidation range of 18300-18700 remains intact.

Views by Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

4:18 PM

COMMENT: US Fed's surprisingly negative tone startles market

The Fed has startled the market by maintaining its hawkish tone, as investors were expecting a softer approach after the release of better-than-expected inflation numbers. IT stocks led to pessimism in the domestic market as recession fears grew in the global economies following the Fed’s comments. The market now awaits the BOE and ECB decisions, which are likely to follow a half-point hike.

Views by Vinod Nair, Head of Research at Geojit Financial.

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3:57 PM

Rupee ends at 82.76/$ against Wednesday’s close of 82.46/$

3:53 PM

India VIX spikes over 6% as expectations of longer rate hikes unnerves investors

3:50 PM

SECTORS: IT, PSB indices slip 2% in broad-based selloff

3:48 PM

SME IPO index noticeable outperformer; ends 1.3% up vs 1.4% fall in Sensex

3:46 PM

National Fertilizers, MTNL, Mahindra CIE among small-caps to survive Thursday's crash

3:43 PM

BROADER MARKET: Small-cap index logs slimmer cut vs benchmarks

3:41 PM

NIFTY DRAGS: Tech M claims top loser spot, sheds nearly 4%