Changing sentiment: Fed policy, China Covid curbs cloud market optimism

Sensex, Nifty drop for third straight session; rupee weakens

India’s benchmark indices closed near two-week lows and the rupee weakened 0.2 per cent against the US dollar on Monday as rising Covid cases in China and talk of persistent rate hikes by US Federal Reserve officials unnerved the markets.

This is a sharp reversal of sentiment from a week ago when the Sensex had posted fresh closing highs and the rupee strengthened after the US consumer price index data for October showed signs of inflationary pressures abating.   The Sensex fell 0.84 per cent, or 519 points, to close at 61,145, while the Nifty50 index lost 0.81 per cent, or 148