US Fed puts markets on the slippery slope; Sensex falls 581 points

Rate hike signal intensifies sell-off; Sensex down 6.5% in 7 sessions

Investors continued to pull out of risky assets as US Federal Reserve officials signalled that they were on course to raise interest rates in March, citing high inflation.

The Sensex dropped as much as 1,419 points, or 2.5 per cent, on Thursday before recouping some of the losses. After a wild ride, the 30-share index closed at 57,277, down 581 points, or 1 per cent. The Nifty, after dropping to a low of 16,867, ended at 17,110 with a decline of 167 points, or 0.9 per cent. Foreign portfolio investors sold shares worth Rs 6,267 crore, while domestic investors were net