Sensex Dives 1,300 Points to 60,283; Nifty Falls Below 18,000

Indices Plummet as US Inflation Data Raises Interest Rate Hike Fears

Key Points

* Sensex crashed 1,303.68 points, or 2.12%, to close at 60,282.93 on Tuesday. * The Nifty 50 index declined 390.90 points, or 2.12%, to settle at 17,944.25. * The fall was triggered by negative cues from global markets and concerns over rising interest rates in the US.

The Indian equity market witnessed a sharp decline on Tuesday, with the benchmark Sensex index plunging over 1,300 points and the Nifty 50 index falling below the 18,000 mark. The sell-off was primarily driven by negative cues from global markets, particularly the US, where inflation data raised concerns about further interest rate hikes by the Federal Reserve.

Data released on Tuesday showed that the US consumer price index (CPI) rose by 8.3% in August year-over-year, higher than the market expectation of 8.1%. This has increased fears that the Fed will continue to aggressively raise interest rates to tame inflation, potentially slowing down economic growth and impacting corporate earnings.

The negative sentiment from global markets, coupled with concerns over the impact of rising interest rates on domestic economic growth and corporate earnings, led to a sell-off in the Indian equity market. All sectoral indices closed in the red, with the IT, banking, and auto stocks witnessing the steepest declines.

Among the major losers in the Sensex pack were IndusInd Bank (down 6.17%), Infosys (down 4.61%), HDFC Bank (down 4.13%), Reliance Industries (down 4.06%), and ICICI Bank (down 3.95%). On the Nifty 50 index, the top losers included IndusInd Bank (down 6.17%), Infosys (down 4.61%), HDFC Bank (down 4.13%), Reliance Industries (down 4.06%), and ICICI Bank (down 3.95%).

The broader market also witnessed a decline, with the BSE Midcap index falling by 2.02% and the BSE Smallcap index by 2.26%. Market experts believe that the negative trend may continue in the near term due to concerns over global economic growth and rising interest rates.

Overall, the sharp decline in Indian equity markets on Tuesday was primarily driven by negative cues from global markets, particularly the US, where inflation data raised concerns about further interest rate hikes by the Federal Reserve.

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