Sensex, Nifty Set To Extend Losses Amid Global Sell-off

(RTTNews) - Indian shares look set to extend losses from the previous session on Thursday, as investors brace for a "sustained period of below trend growth" in the United States and "some softening of labor market conditions" due to aggressive policy tightening. The Fed hiked rates by 75 bps in line with expectations, but the accompanying policy statement and projections signaled another 75bp move in November followed by a 50bp move in December.

Benchmark indexes Sensex and the Nifty fell around half a percent each on Wednesday while the rupee ended down 23 paise at 79.98 against the greenback, marking a record closing low.

Asian markets traded broadly lower this morning, as U.S. two-year yield inched toward 2007 highs after the Fed's third-straight big hike.

The yen weakened ahead of BoJ decision and gold edged lower on dollar strength while oil prices rose after falling in the U.S. trading session.

U.S. stocks fluctuated before eventually ending sharply lower overnight as the Fed delivered a widely expected 75-bps rate hike and signaled further aggressive rate hikes for the remainder of the year.

Economic projections provided along with the announcement suggest Fed officials expect to raise rates to 4.4 percent by the end of the year, well above the 3.4 percent forecast in June.

Fed officials expect to increase rates to 4.6 percent by the end of 2023 before eventually scaling back rates in 2024 and 2025.

The Dow shed 1.7 percent to hit a three-month closing low, while the S&P 500 and the tech-heavy Nasdaq Composite gave up 1.7 percent and 1.8 percent, respectively to reach over two-month closing lows.

European stocks closed higher on Wednesday ahead of the Fed decision.

The pan European Stoxx 600 gained 0.9 percent. The German DAX rose 0.8 percent, France's CAC 40 index climbed 0.9 percent and the U.K.'s FTSE 100 added 0.6 percent.