Sensex, Nifty tumble 2% on Federal Reserve's steep interest rate hike

Foreign investors sold shares worth 3,257.65 crore on Thursday, taking their year-to-date selling tally past the Rs 2-trllion mark

India’s equity markets extended their rout on Thursday, along with international peers, as investors fled risky assets on fears of a global recession after the US Federal Reserve raised its interest rates by 75 basis points — its biggest increase since 1994 — and signalled another big hike next month.

The initial rally seen after the Fed announcement — on Wall Street on Wednesday and in Asian markets on Thursday morning — faded as investors braced for a hard landing of the economy. The Sensex had risen 600 points in early trade and later plunged over 1,700 points from the day’s