Sensex plunges 371 pts on interest rate concerns

Dalal Street fell more than 3% on Monday, taking back more than half the previous week’s gains as foreign...

Dalal Street fell more than 3% on Monday, taking back more than half the previous week’s gains as foreign and domestic investors sold shares on expectations of higher US and Indian interest rates.

The 30-share benchmark BSE index ended 371 points lower at 10,042 points. The 50-issue NSE index dropped 3.5% to 2,943 points. The US Federal Reserve meets later this week and speculation is rife that it may raise interest rates for the 17th time on Thursday and signal more to come.

Economists say India’s central bank may do the same when it reviews rates in Asia’s third-largest economy next month, meaning companies’ borrowing costs will rise, impacting their profits.

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The Indian market was one of the worst performers among global bourses, which were mixed today. London’s FTSE 100 index was up slightly by 0.07%. Key benchmark indices in Japan, South Korea, Taiwan and Singapore rose between 0.19-1.1%.

Today’s fall of 371 points was the biggest fall in the Sensex since June 13, when it had plunged 413.50 points in weakness across global markets due to prospects for further rise in US interest rates.

Adani group chief Gautam Adani. The regulator made it clear that none of the charges in the show-cause notice could be proved. It also confirmed there was no violation of the Sebi Act concerning fraudulent or unfair trade practices.

Clean chit for Adani: Sebi dismisses insider trading claims raised by Hindenburg

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Sebi clears Gautam Adani and Adani Group of all charges by Hindenburg Research. Allegations of insider trading and market manipulation proved unfounded. No violation of Sebi Act. Adani Group remains committed.

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