The US Federal Reserve has retained the benchmark interest rate at near-zero level and struck an upbeat note saying that the American economy has continued to strengthen in recent months.
The 50-share Nifty scaled a high of 10,227.30 intra-day but succumbed to profit-booking to finish at 10,155.25
The S&P BSE Sensex plunged 461 points to end at 25,603.
In the Sensex pack, Yes bank emerged as the biggest loser, falling 9.13 per cent, followed by IndusInd Bank (6.6 per cent), HeroMotoCorp (6.01 per cent), Sun Pharma (4.79 per cent) and SBI (4.70 per cent).
Given the impact Covid-19 pandemic had over the world economy, analysts expect global central banks, especially the US Fed, to keep the liquidity tap open, which, in turn, is likely to keep the equity markets, especially those in the emerging markets, buoyant.
The hacking took place on the night of February 4.
Instead of getting swayed by market gyrations, investors must stay invested for the long term, advises Sarbajeet K Sen.
Heavyweights such as Coal India, L&T and SBI ran up losses, taking cues from overseas markets.
With improvement in the housing and manufacturing sectors, the recession-hit US economy has been witnessing signs of stabilisation in recent months, the US Federal Reserve has said.
Any market correction, analysts say, would be an attractive entry point for risky assets, which should do well over the medium-to-long term.
Financials were among the top losers along with Sun Pharma and index heavyweight Reliance Industries
The 30-share Sensex ended down 249 points or 0.94% at 26,304 levels.
Stock markets opening with losses too put pressure on the domestic unit.
In the past four months, more than 4 million new accounts have been opened, taking the total to 44.3 million.
Improvements in the labour market has triggered this sentiment.
NITI is trying to partner with other knowledge institutions.
The markets have been unable to sustain at higher levels as a rise in bond yields globally, especially in the US have dented sentiment. Surging commodity prices, especially crude oil that have now hit $70 a barrel (Brent) coupled with inflation woes and fear of sporadic lockdown across major economic hubs back home as Covid cases rise have chased the bulls away. In the short-term, analysts expect the markets to remain volatile as they react to news flow - both from overseas and developments back home. Investors, they say, need to keep a tab on how the US treasury yields move, which in turn will have a ripple effect on how big money moves across developed (DMs) and emerging markets (EMs), including India.
On the Sensex chart, losses were mainly driven by Hero MotoCorp, Tata Motors, Axis Bank, Tata Steel, Maruti and SBI -- falling as much as 6.19 per cent.
The recession-hit American economy is slowly witnessing signs of stabilisation, with significant reduction in the pace of GDP contraction and job losses. Going by the latest Beige Book from the US Federal Reserve, economic activity in most of the districts in the country have either improved or stabilised.
Tech Mahindra was the top laggard in the Sensex pack, cracking over 5 per cent, followed by Infosys, HDFC, IndusInd Bank, Reliance Industries and NTPC. On the other hand, Hero MotoCorp, L&T, Maruti, UltraTech Cement and Sun Pharma led the gainers' chart.
Top gainers in the Sensex pack included Vedanta, Coal India, ICICI Bank, PowerGrid, HCL Tech and Bajaj Finance, rising up to 2.65 per cent.
The US Federal Reserve has earned a whopping $14 billion profit on loan programmes made in the last two years, says a media report.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
'One way of doing this could be offering credit guarantee to the banks, say 10 per cent, for fresh loans given to micro, small and medium enterprises,' observes Tamal Bandyopadhyay.
Yes Bank was the top gainer in the Sensex pack, soaring 24.03 per cent, after the lender said it had received a binding offer for $ 1.2 billion funding from an overseas investor. SBI, Infosys, Tata Motors, Bharti Airtel, HCL Tech and HDFC too rallied up to 7.69 per cent.
The 30-share Sensex ended down 563 points at 25,202.
India Inc on Monday said that the Interim Budget was 'absolutely' up to the expectations.
Indian bonds remained volatile over the past week on uncertainties over the maiden offshore sovereign bonds issuance, according to a report by DBS Group Research.
Rate-sensitive sectors like banks, auto and realty witnessed strong buying demand in trades today
Emerging markets like India and China are witnessing a remarkable transformation, despite a slowdown in economic growth, lifting millions of people out of poverty, Federal Reserve Chairman Ben Bernanke has said.
All policy planners want low interest rate, says Jaitley
Most Asian currency and equity markets too suffered steep losses due to US rate hike fears.
The broader NSE Nifty ended 57 points, or 0.49 per cent, lower at 11,498.90 in its fourth straight day of losses.
S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.
A higher opening in the domestic equity market influenced the rupee uptrend
Shares of Yes Bank tanked over 15.52 per cent. Other losers in the Sensex pack included Tata Steel, Maruti, SBI, RIL, Tech Mahindra, ONGC, Vedanta, Bajaj Finance, Hero MotoCorp and TCS, falling up to 3.66 per cent.
This year, the combined net profit of 24 index companies, which have declared their June-20 numbers, has declined by 37 per cent year on year, while their revenues, including other income, is down by 21 per cent YoY so far.
Sensex under pressure as Yellen signals rate hike; banking stock slip.
As lobbying and counter-lobbying intensify, right now, it looks like a T20 match, discovers Tamal Bandyopadhyay.
Not just India, but Asian peers such as Indonesia, South Korea, Thailand, Taiwan and The Philippines have seen sharp FPI outflows this year
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