Sensex Falls 450 Points After IT Stocks Decline On US Fed Rate Fears

Stock indices began the trade with losses today in tandem with a downward trend in global markets amid concerns over a prolonged high-interest rate regime by the US.

Foreign fund outflows and weak trend in IT stocks also weakened investor sentiments.

The BSE Sensex declined 450 points to 59,011.02. The NSE Nifty slipped 144 points to 17,321.55.

Infosys, Tata Motors, Tech Mahindra, HCL Technologies, Wipro, Tata Consultancy Services, Tata Steel and Maruti were the biggest losers from the Sensex pack.

NTPC, Nestle, ICICI Bank and State Bank of India gained in the morning trade.

In Asian markets, South Korea, Japan, China and Hong Kong were trading lower.

The US markets had closed on a weak note on Friday.

“With the overall sentiment remaining bearish, local equities are expected to ease in early Monday trades. Caution is likely to remain the buzzword as concerns over more rate hikes by developed economies in the wake of stubbornly high inflation levels continue to weigh on investors’ minds,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

(With inputs from PTI)