By Malvika Gurung
Investing.com -- The Indian benchmark equity indices started Thursday’s session with a gap-down opening, reacting to the carnage in global markets after the Fed presented its aggressive monetary policy post a two-day meeting on Wednesday.
Nifty50 and BSE Sensex opened 1.2% and almost 1% lower, respectively and in only 5 minutes, the 30-scrip index fell to a low of 56,809.97 and Nifty50 plunged to 16,958.85. Within 5 minutes of the market opening on Thursday, investors lost Rs 3.8 lakh crore and by 11 am, their wealth was erased by over 4 lakh crore.
The Fed’s Chair Powell’s commentary on Wednesday left investors wondering whether there will be four or five interest rate hikes in 2022, as they were expecting 3 hikes until two days back.
The domestic market reacted nervously to the Fed’s indication to hike the interest rate in March and halt its bond-buying programme, which resulted in the DOLLAR/USD hitting its 23-month high, and crude oil prices climbing near their all-time high levels in 2014.
Consequently, fears loomed around the foreign investors withdrawing money from the market, as traders booked their positions ahead of the futures and options expiry on Thursday.
At 1:50 pm, Nifty was down 1.3% and Sensex slid 1.33%. Nifty Bank , along with two other sectoral indices on the Nifty basket was training in green, marginally up 0.05%.
Edelweiss Securities views the market to rise and fall during the year and estimates Nifty50 to end the year at 18,000-mark, as the market is going to remain volatile in the upcoming months.
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