Stock Market: Sensex Plunges 879 Points, Nifty Settles Below 18,450 Post-Fed Rate Hikes. IT Stocks Worst Hit

Stock update: On the 30-share Sensex platform barring two stocks, all were placed in the red. TechM was the prime loser, down 3.98 per cent

In the broader markets, Nifty MidCap 100 and Nifty SmallCap 100 indices gained up to 0.1 per cent.

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Sensex and Nifty, the two key domestic equity benchmarks, declined sharply as investors dumped shares across sectors on Thursday amid weak global cues after the US Federal Reserve hiked interest rates by 50 basis points (bps). The Federal Reserve will deliver more interest rate hikes next year even as the economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the US central bank does not get a firmer grip on inflation.

The S&P BSE Sensex was closed at 61,799, down 879 points, while the broader NSE Nifty was down by 245 points to 18,415.

On the 30-share Sensex platform barring two stocks, all were placed in the red. TechM was the prime loser, down 3.98 per cent. On the flip side, NTPC and Sun Pharma were the only two gainers.

Among individual stocks, shares of IRCTC dipped 5 per cent to Rs 696.70 after the government fixed floor price at Rs 680 per share for its stake sale via OFS.

In the broader markets, Nifty MidCap 100 and Nifty SmallCap 100 indices gained up to 0.1 per cent.

Sectorwise, Nifty IT pack was the worst hit, down over 2 per cent. This was followed by the Nifty PSU Bank index (down 1.88 per cent). 

In the global market, stocks retreated on Thursday as markets dip following the US Federal Reserve's latest policy update. The pan-European Stoxx 600 was down 1.2 per cent in early trade, with retail stocks shedding 2 per cent to lead losses as all sectors and major bourses slid into negative territory. In Asia, Nikkei, Kospi, and Hang Seng dropped up to 1.5 per cent. 

In the previous session on Thursday, the BSE Sensex gained 145 points (0.23 per cent) to close at 62,678, while Nifty gained 52 points (0.28 per cent) to end at 18,660. The indices hit intra-day highs of 62,835 and 18,696, respectively.

Meanwhile, the rupee declined by 27 paise to close at 82.76 (provisional) against the US dollar on Thursday after the US Federal Reserve's interest rate hike and its hawkish stance dented investor sentiments. A massive sell-off in domestic equities and a strong greenback overseas also weighed on the local unit, forex traders said.

At the interbank foreign exchange market, the rupee opened sharply lower at 82.63 against the greenback and witnessed a high of 82.41 and a low of 82.77. It finally settled at 82.76, down 27 paise over its previous close of 82.49.

Brent crude futures, the global oil benchmark, dropped 0.76 per cent to $76.54 per barrel.

Foreign institutional investors (FIIs) were net buyers in capital markets on Wednesday as they bought shares worth Rs 372.16 crore, according to exchange data.