Indian Stock Markets Tumble as Bank of Japan Hikes Rates, Await US Fed Meeting Outcome

Domestic benchmark indices, Sensex and Nifty, plunged by one percent today amidst heavy selling pressure, triggered by the Bank of Japan’s decision to raise interest rates for the first time in 17 years and cautious sentiment prevailing ahead of the United States Federal Reserve meeting outcome.

The BSE’s Sensex witnessed a sharp decline of 1.01 percent, shedding 736.37 points to close at 72,012.05, while the NSE’s Nifty dropped by 1.08 percent or 238.25 points, concluding the session at 21,817.45.

The Bank of Japan (BOJ) announced on Tuesday its move to increase interest rates for the first time since 2007, marking the end of an eight-year-long negative interest rates regime. The interest rate was lifted to a range of zero to 0.1 percent from the previous (-) 0.1 percent. Vinod Nair, Head of Research at Geojit Financial Services, commented, “Following the BOJ’s decision to hike interest rates for the first time in 17 years, the Asian peers’ mood turned sour, which pulled the Indian market to continue its recent pessimism.”