Markets across the globe dived with fears of US Fed taking a hard look at the continuation of its $85-billion-a-month bond-buying programme during its meeting next week coming back to haunt the markets.
US budget deal
What stoked fears of the markets of such an eventuality was not only the improving US economy and jobs data but also the deal over the budget reached by the country's two major political adversaries removing fiscal policy uncertainties that were perceived to be a threat to the US economy.
Admittedly there was relief that the budget deal between the Democrats and Republicans staved off the possibility of a Government shutdown.
Fed bond-buying programme
But this also created apprehensions that the US Fed might take a hawkish look at its bond-buying programme since one of the potential threats to the economic recovery was out of the way at least in the near future.
The Nifty and the Sensex opened in the red on Thursday. The Nifty opened at 6,277, down 31 points, while the Sensex opened at 21,101, down 70 points.
At 1.45 p.m., the 30-share BSE Sensex was down 156.07 points or 0.74 per cent at 21,015.34 and the 50-share NSE index Nifty was down 45.50 points or 0.72 per cent at 6,262.40.
The Sensex five stocks that were trading in the green were Tata Power, BHEL, GAIL, HDFC and NTPC. On the other hand, the top five Sensex losers were Tata Motors, ONGC, Coal India, Maruti and ICICI Bank.
Barring power and realty, all other BSE sectoral indices were trading in the red. Among them, auto, banking, metal and oil & gas sectors fell the most by 1.61 per cent, 0.93 per cent, 0.88 per cent and 0.87 per cent, while power index was up 0.86 per cent and realty 0.69 per cent.
In the Asian markets, Japan’s Nikkei was down 1.61 per cent, Hong Kong’s Hang Seng 0.54 per cent and Singapore’s Straits Times index down 0.39 per cent.
US budget deal
What stoked fears of the markets of such an eventuality was not only the improving US economy and jobs data but also the deal over the budget reached by the country's two major political adversaries removing fiscal policy uncertainties that were perceived to be a threat to the US economy.
Admittedly there was relief that the budget deal between the Democrats and Republicans staved off the possibility of a Government shutdown.
Fed bond-buying programme
But this also created apprehensions that the US Fed might take a hawkish look at its bond-buying programme since one of the potential threats to the economic recovery was out of the way at least in the near future.
The Nifty and the Sensex opened in the red on Thursday. The Nifty opened at 6,277, down 31 points, while the Sensex opened at 21,101, down 70 points.
At 1.45 p.m., the 30-share BSE Sensex was down 156.07 points or 0.74 per cent at 21,015.34 and the 50-share NSE index Nifty was down 45.50 points or 0.72 per cent at 6,262.40.
The Sensex five stocks that were trading in the green were Tata Power, BHEL, GAIL, HDFC and NTPC. On the other hand, the top five Sensex losers were Tata Motors, ONGC, Coal India, Maruti and ICICI Bank.
Barring power and realty, all other BSE sectoral indices were trading in the red. Among them, auto, banking, metal and oil & gas sectors fell the most by 1.61 per cent, 0.93 per cent, 0.88 per cent and 0.87 per cent, while power index was up 0.86 per cent and realty 0.69 per cent.
In the Asian markets, Japan’s Nikkei was down 1.61 per cent, Hong Kong’s Hang Seng 0.54 per cent and Singapore’s Straits Times index down 0.39 per cent.
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