Sensex, Nifty snap three-day winning run as US Fed raises interest rates for a second time this year

Mumbai: The BSE Sensex tumbled over 139 points on Thursday following three straight sessions of gains after the US Federal Reserve raised interest rates and struck a more hawkish stance. Wholesale inflation rising to a 14-month high of 4.43 percent in May also dented trading sentiment, brokers said. [caption id=“attachment_4349313” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The Sensex saw a slightly better start and advanced to a high of 35,749.88, but soon turned lower in line with a weak trend at other Asian markets. It finally finished 139.34 points, or 0.39 percent, lower at 35,599.82. The gauge had risen by 295.49 points in the past three sessions. Likewise, the broader NSE Nifty dropped by 48.65 points, or 0.45 percent to 10,808.05 after shuttling between 10,773.55 and 10,833.70. Caution prevailed after the US Fed raised its key interest rate by 0.25 percent on Wednesday, the second increase of the year, and signalled two more hikes in 2018 and four in 2019. Investors are also awaiting European Central Bank’s policy rate decision. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 70.77 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 486.78 crore on Wednesday, as per provisional data.