Nifty At 52-Week Low, Sensex Crashes 1,000 Points! Fed Rate Hike Dampens Mood Of Dalal Street

Share Market Today: Sensex and Nifty gave up early gains to turn negative on Thursday. Sensex was down over 1,000 points and Nifty was at 52-week low.

Written by: India.com Business Desk Edited by: Raghav Aggarwal

Updated: June 16, 2022, 2:56 PM IST

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https://www.india.com/business/nifty-at-52-week-low-sensex-crashes-1000-points-fed-rate-hike-dampens-mood-of-dalal-street-4-key-reasons-here-5457091/ Copy

Share Market News | New Delhi: NSE’s benchmark index, Nifty50, hit a 52-week or yearly low on Thursday as it slumped nearly 300 points to fall to 15,401. Sensex, BSE’s benchmark index, fell over 1,000 points during the day. As of 2:30 PM, Sensex was trading 1,048 points lower at 51,492. Nifty was hovering around 15,400. Investors lost nearly Rs 5 lakh crore or Rs 5 trillion as the market witnessed a nosedive.

At the opening session, no one would have guessed that the markets would fall this low. In early trade, Sensex rose over 500 points and Nifty was at over 15,850. However, the Fed rate hike and high inflation played the dampener.

Why is the market falling? 4 Reasons

1. Fed Rate Hike: The Fed on Wednesday increased the key interest rate by 75basis points. It revised the target range to 1.5 per cent – 1.75 per cent. Another rate hike is likely in July 2022. This accelerated the exit of foreign investors from the market.
2. Foreign investors’ exit: In the current year, foreign investors have sold equities worth Rs 1,92,104, according to Economic Times. They have stayed as net sellers for several months now.
3. Global bear market: After a green start on Thursday, almost all Asian indices erased gains and entered the red territory. Another rate hike is expected from the Bank of England.
4. Recession fears: The fears of recession have been looming in the US economy. Several experts believe that the sudden rate hikes may lead to a recession in the country.