Sensex snaps 3-day winning run as Fed raises rate

The BSE Sensex tumbled over 139 points today 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 per cent in May also dented trading sentiment, brokers said.

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 per cent, 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 per cent 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 per cent yesterday, 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 yesterday, as per provisional data.