Prospect of US Fed firing on all cylinders spooks Indian markets

Overseas investors sold shares worth Rs 2,280 crore, while domestic institutions provided buying support of Rs 623 crore

The benchmark indices declined for the second day in a row as US bond yields rose amid worries of reduction in the US Federal Reserve’s (Fed’s) $9-trillion balance sheet. Riskier assets corrected after Fed Governor Lael Brainard commented that the central bank would start balance-sheet reduction ‘at a rapid pace’ as soon as next month. Experts said markets are yet to price in such a prospect. 

The benchmark Sensex ended the session at 59,610, with a decline of 566 points, or 0.9 per cent.

The Nifty, on the other hand, ended the session at 17,807 — a drop of 150 points, or