Benchmark indices Sensex and Nifty plunged on Thursday over direct tax collections failing to meet expected figures and the US Federal Reserve dashing hopes of further rate cuts in the near future. The BSE Sensex ended 470.41 points or 1.29 per cent lower to 36,093.47, while Nifty tumbled 135.85 points or 1.25 per cent to 10,704.80.
Banking stocks, including Yes Bank, Indus Ind Bank and ICICI Bank were the most hit, reflecting the Fed Reserve factor. The no change in policy stance by Bank of Japan (BoJ) also revived concerns over global slowdown and hurt domestic stock indices.
The other major losers include TCS, Infosys, Tata Steel, Tech Mahindra, NTPC, SBI, HCL Tech, TCS, L&T, Infosys and Axis Bank.
On the other hand, Tata Motors, Maruti, Asian Paints, HDFC Bank, HUL and Bharti Airtel rose up to 1.40 per cent.
According to traders, global investor sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points, but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a mixed note in their respective late morning sessions.
On Wall Street too, bourses ended on a tepid note after Fed policy outcome on Wednesday. Sustained foreign fund outflow too weighed on market sentiment here, traders said.
On Wednesday, foreign portfolio investor sold shares worth a net of Rs 959.09 crore, while domestic institutional investors bought equities worth Rs 780.45 crore, provisional data showed.
The rupee, meanwhile, was trading flat against its previous close at 71.20 in early session. Global oil benchmark Brent crude rose 0.11 per cent to 63.67 per barrel (intra-day).
(With PTI inputs)
