Sensex down by 215 pts as Fed continues cut in stimulus

The S&P BSE benchmark sensex tumbled by 215 points in the late morning trade on broad-based selling pressure due to fall in the global markets.
This was after the US Federal Reserve pressed on with cuts to US economic stimulus and a report showed contraction in China's manufacturing industry.
Profit-booking from operators in view of last day of the futures and options January contract also affected the market sentiment.
The sensex resumed lower at 20,491.74 and hovered in a range of 20,501.92 and 20,415.02 before quoting at 20,432.71 at 1030hrs, showing a loss of 214.59 points or 1.04 per cent from its last close.

The NSE 50-share Nifty also dropped by 68.25 points or 1.12 pct to 6,052.00 at 1030hrs.
Major losers were SSLT 3.04 pct, Hindalco 2.95 pct, Icici Bank 2.41 pct, BHEL 2.34 pct, Tata Steel 2.25 pct and ITC 1.78 pct.

After a monetary policy review, the Federal Open Market Committee (FOMC) yesterday announced that it will reduce monthly bond purchases by another USD 10 billion to USD 65 billion.
In Asia, indices in Hong Kong, China, Singapore, Japan and Indonesia fell by 0.48 pct to 3.33 pct. Stock markets in South Korea and Taiwan are closed today and Hong Kong and Singapore will shut early for the Chinese New Year holidays.

US stocks sank yesterday on the Fed issue and disappointment to investors on earnings forecasts of some top companies.