Sensex Tumbles 224 pts, Nifty below 8,600 on US Rate Hike Concerns 

Mumbai: Equities on the domestic bourses failed to sustain the positive momentum on F&O expiry day as fag-end selling pulled down the benchmark Sensex by over 224 points, the worst single-day fall in more than two weeks, amid growing US rate hike concerns ahead of Fed Chair Janet Yellen’s speech.

In the August series, the Sensex plunged by 372.71 points, or 1.32 per cent and NSE Nifty by 74.10 points, or 0.85 per cent.

The initial range-bound momentum on Thursday driven by short-covering in view of August derivative expiry led to key indices ruling in the positive terrain till afternoon. Mid-afternoon trade saw the market wobbled as jittery investors bridled by caution ahead of US Federal Reserve Chair Yellen’s speech tomorrow, while lower European opening and lack of direction led the index succumb to selling pressure.

The Sensex resumed higher at 28,103.60 and advanced to 28,154.21 as participants indulged in short-covering of their outstanding positions. However, the 30-scrip bundle slipped into the negative zone and touched a low of 27,803.24 before ending at over two-week low of 27,835.91, showing a fall of 224.03 points or 0.80 per cent. This was the biggest single-day fall for the benchmark index since August 10 when it had fallen by 310 points. In the August series, the Sensex plunged by 372.71 points, or 1.32 per cent and NSE Nifty by 74.10 points, or 0.85 per cent.

The broader NSE Nifty dipped below the 8,600-mark. Nifty edged down 58.10 points or 0.67 per cent to 8,592.20 points.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said: “Market was volatile and slid on the expiry day as investor started booking profits before Yellens speech. FIIs were on the selling mode which could have added fears to the current consolidation phase. Further direction to the market will depend upon the outcome of the Fed’s view on the interest rate trajectory.”

Source: PTI