Sensex dragged into the red by US Fed rate hike, closes 337 points lower

Dragged down by the indication of a further rate hike of 125 basis points by the US Federal Reserve this year, Sensex ended 337 points lower below the 60,000 mark. Nifty on the other hand lost 89 points, and settled at 17,630 points to end the day, after a 75 basis points rate hike by the American central bank.

All sectors were in the red as markets closed, except for FMCG, power and automobile stocks, as a falling rupee could drive foreign investors away from Indian markets. The Indian currency fell to record lows and stood at more than 80 against the US dollar. The decline of banking and energy stocks was largely responsible for subdued Indian indices.

While Asian markets dipped to their lowest levels in two years, European indices were down by one per cent after the US Federal Reserve’s move, and also revised GDP forecasts.