Domestic stock markets suffered sharp losses on Thursday following three days of gains, tracking weakness across global equities after the US central bank warned the world’s largest economy faced a highly uncertain path to recovery from the coronavirus-induced downturn. The S&P BSE Sensex index slumped as much as 1.04 per cent (402.13 points) to 38,212.66 during the session, and the broader NSE Nifty 50 benchmark dropped as much as 1.02 per cent to 11,294.15.
The Sensex ended 394.40 points – or 1.02 per cent – lower at 38,220.39 and the Nifty settled at 11,307.90, down 100.50 points – or 0.88 per cent – from its previous close.
The Federal Reserve’s minutes of its latest policy meeting showed officials remained doubtful about a swift rebound in economic growth.
The readout on Fed discussions provides hints to further action that the US central bank could take in September. No change in interest rate policy is expected until the end of 2021.
Global market sentiment had been bullish up until the Federal Reserve’s comments, with the S&P 500 and the Nasdaq hitting all-time highs driven largely by Apple Inc, whose market value touched the $2-trillion milestone.
