The Indian market extended weakness to fifth day as benchmarks Nifty50 and Sensex closed with around two per cent cuts on Thursday. This comes after a day when the US Fed announced the interest rate hike by 75 basis points, largely on the expected lines. The broader Nifty sunk below 15,400, while the Sensex ended the day with around 1000 points fall.
The weakness came from the massive profit booking in mid-cap and small-cap stocks.
“FED effect coupled with a delayed start to the southwest monsoon wrecked havoc as the Nifty caved in below 15400 for the first time in the last one year,” said S Ranganathan, Head of Research at LKP securities.
Meanwhile, in the broader market, Nifty midcap and small cap corrected by around two and half per cent and three and half per cent on Thursday.
Nifty Metal took the maximum drubbing among sectoral indices with over five per cent fall as all other indices slipped into the red.
Hindalco, Tata steel, ONGC, Coal India, Tata Motors, IndusInd Bank, Bharti Airtel, Tech Mahindra and Wipro declined the most in a falling market
Nestle India and Britannia were the only stocks to gain among 80 listed shares on the headline indices as 48 shares declined on Nifty50 and only one gained on the 30-share BSE Sensex on Thursday.