Overseas, Asian shares slumped on Thursday after Wall Street suffered its worst drubbing in eight months.
Trading in US index futures indicated that the Dow Jones Industrial Average could slump 220 points at the opening bell today, 11 October 2018.
US stocks slumped to close sharply lower Wednesday as the Dow Jones Industrial Average sank and the S&P 500 had its worst day since February as technology stocks went into a freefall. Investors spooked by rising bond yields dumped equities in all sectors, triggering a broad market rout. The surge in bond yields made stocks look less attractive compared to bonds while also threatening to curb economic activity and profits.
President Donald Trump reportedly knocked the US Federal Reserve for continuing to raise interest rates despite some recent market turbulence. Trump's comments on the central bank Wednesday came a day after he said he did not like what they were doing in terms of monetary policy.
In the latest US economic data, the producer-price index rose 0.2% in September, while the core PPI was up 0.4%. Separately, wholesale inventories in the US rose 1% in August.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1096.05 crore on 10 October 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1,892.94 crore on 10 October 2018, as per provisional data.
The market spurted on Wednesday led by rally in financial shares. Gains were triggered by value buying after recent steep fall in share prices. The central bank's decision to inject liquidity into the system through purchase of government bonds also improved sentiment. The Sensex rose 461.42 points or 1.35% to settle at 34,760.89. The Nifty 50 index rose 159.05 points or 1.54% to settle at 10,460.10.
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