After a day’s breather, the Sensex resumed its downward spiral by taking a hit of 201 points to 26,525.46, tracking a global sell-off as Bank of Japan refrained from adding more stimulus and the Fed lowered its growth forecast for the US economy.
The market swung in a range of 400 points as volatility remained high in view of upcoming Brexit referendum on whether the country should exit the European Union.
Country’s biggest carmaker Maruti Suzuki plunged nearly 3% to Rs 4,084 on costlier yen following BoJ’s meet.
In broader markets, the small-cap index fell 0.55% while mid-cap ended 0.37% lower.
“The US Federal Reserve signalled it is likely to adopt an even slower approach to raising rates on weaker job creation at home and fresh worries about economic events abroad,” said Shreyash Devalkar, fund manager equities, BNP Paribas MF.
The Fed also trimmed its US GDP estimate to 2% from 2.2% for the year.
The Sensex after opening lower continued to slide and hit a low of 26,314.91. However, on value-buying in some bluechips, it managed to trim half of its losses and closed down by 200.88 points or 0.75% at 26,525.46.
The NSE Nifty cracked the crucial 8,100-mark during the day, but managed to recoup some losses to finally settle 65.85 points or 0.80% down at 8,140.75.
State Bank of India’s subsidiaries continued their rally for a second straight session, surging up to 20%. State Bank of Mysore jumped 19.99%, State Bank of Bikaner and Jaipur surged 15.74% and State Bank of Travancore zoomed 15.21%.
The Union cabinet on Wednesday cleared the merger of SBI with its associate banks that would pave the way for the state-owned lender to become a global banking giant.
The BoJ inaction on stimulus after its two-day monetary policy review led Asian markets tumble across the region, with Japan Nikkei 225 index falling 3.05%.
Other indices from the region like in China, Hong Kong, South Korea, Singapore and Taiwan dropped between 0.50% and 2.75%. Europe was also lower on concerns over Brexit with indices in France, Germany and the UK down by 0.79% to 0.87%.