Sensex, Nifty plunge 1.6% after US indices see worst drop in 2 years

On Wednesday, the US Federal Reserve announced a 50 basis points rate hike, the highest in 22 years, but ruled out a 75-bps hike in the future

The benchmark indices fell 1.6 per cent on Friday, extending their weekly drop to nearly 4 per cent — the most in nearly five months. The latest decline came after US indices posted their worst drop since 2020 on Thursday amid rising US Treasury yields.

An uncertain economic outlook, soaring prices, and a shift towards a tighter monetary regime have triggered a flight to safety among investors.

The benchmark Sensex declined as much as 2 per cent intraday before recovering some of the losses to finish the session at 54,835, with a decline of 866 points, or 1.56 per cent. The Nifty,