Sensex slides for 2nd day as Fed rate hike worries persist

Sensex slides for 2nd day as Fed rate hike worries persist

Domestic equity indices closed lower on Wednesday, tracking losses in global peers, as strong US data suggested that the pace of interest rate hikes may not ease any time soon.

Banking, financials and index heavyweight

were the worst index drags. The 30-share Sensex fell 168 points to end at 59,029. Its broader peer, Nifty50, ended at 17,624, down 31 points.

Vinod Nair, Head of Research at

said that the latest economic figures indicate that the US central bank would continue to raise interest rates.

“As, according to ISM’s (Institute of Supply Management) US Non-Manufacturing PMI, the services sector expanded last month at a rate that was higher than anticipated, putting pressure on global markets. Main indices followed the global trend, however, mid and small caps rallied with strong outperformance,” Nair added.

In the 30-pack Sensex,

was the biggest loser, down 1.64 per cent to Rs 1,090.40. M&M shed 1.34 per cent, declined 1.15 per cent and fell 1.08 per cent. , , and were also among stocks that settled with cuts.

On the other hand,

rose 4.13 per cent to Rs 6,767.95. surged 0.71 per cent, followed by , up 0.71 per cent and rose 0.69 per cent.

Sectorally, Nifty Auto index fell 1.15 per cent, while Nifty Private Bank declined 0.62 per cent. On the other hand, Nifty Media and Pharma surged 1.46 per cent and 0.78 per cent, respectively. Nifty Midcap50 and Smallcap50 rose 0.56 per cent and 0.86 per cent, respectively.

Earlier in the day, Asian markets ended lower, South Korea’s Kospi and Japan’s Nikkei fell 0.71 per cent and 1.39 per cent, respectively. While China’s Shanghai Composite rose 0.09 per cent.

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