Indices snap four-day rally on coronavirus surge, Fed's hawkish tone

The indices had risen in the previous four sessions on the back of positive macroeconomic indicators

India’s benchmark indices snapped their four-day winning streak on Thursday amid a surge in Covid-19 cases and negative global cues. The Sensex fell 621 points, or 1.03 per cent, to end the session at 59,601, while the Nifty dropped 179 points to close at 17,746.

The country reported 90,928 new Covid cases on Thursday, as against about 58,000 on Wednesday, spooking investors betting on Indian equities. The sharp rise in Covid cases has reignited concerns about economic recovery.

Moreover, the US Federal Reserve’s minutes showed the increasing preference among its officials for faster rate hikes and a shrinking of its balance sheet.

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