15.10.16

Sensex sinks


Renewed worries about a rate hike in the US sent financial markets tumbling on Thursday. Share indices slid 1.6% and the rupee weakened after minutes of the US Federal Reserve Open Market Committee's latest policy meeting hinted at the possibility of monetary tightening later this year.Weak Chinese trade data for September also hurt market sentiment, fostering doubt about the health of the world's second-largest economy .
The Sensex fell 439 points to close at 27643.11, its lowest level since June 11. The Nifty slumped 135 points to close at 8573.35, its lowest level since August 26, breaking the psychologically crucial support of 8600.Thursday's session marked the biggest one-day fall since September 29.
The rupee lost over half a percent to the US dollar, its steepest fall in over three months, and closed at 66.94 per US dollar, down 0.6% from its previous close at 66.53 on Wednesday .
The volatility index (VIX) -a measure of traders' perception of near-term risks in the markets -surged 8% to 15.42, reversing a six day decline, showing the undertone is nervous. The market breadth was negative, with 1,290 stocks falling, 349 stocks gaining and 57 remaining unchanged.
Market strategists said the sharp fall in reaction to the minutes indicates the markets are realising that the days of supportive monetary policies by central banks are coming to an end. 

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