Indian equity indices plunge on US Fed remarks, profit-taking

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Mumbai, June 16 (IANS) Negative global cues and profit taking after some handsome gains the previous day spooked key Indian equity markets on Thursday.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,686.03 points, was trading at 26,350.03 points (around 12.30 p.m.) — down 376.31 points or 1.41 per cent from the previous close at 26,726.34 points.

At one point, it was down over 400 points with just one scrip in the green.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) plunged by 120.75 points or 1.47 per cent, at 8,085.85 points.

The Sensex touched a high of 26,686.03 points and a low of 26,314.91 points during intra-day trade. The BSE market breadth was skewed in favour of the bears — with 1,740 declines and 606 advances.

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Due mainly to profit taking, heavy selling pressure was witnessed in banking, automobile and capital goods stocks.

Both the key Indian indices had ended on a higher note during the previous trade session on Wednesday. The barometer index had surged by 330.63 points or 1.25 per cent, while the Nifty had risen by 97.75 points or 1.21 per cent.

“The markets have reacted to the monetary policy annoucements of the Federal Market Open Committee on Wednesday,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

“The cautiousness showed by the Fed chairwoman on keeping the key interest rates unchanged have depresssed the global markets,” he said, alluding that this made the investors ignore the fact that rates were not altered.

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