Sensex drops 571 pts as US Fed remains hawkish

Mumbai: The US central bank’s hawkish stance on rates left investors jittery as prospects of future rate hikes rose, pulling the sensex down by 571 points on Thursday to 66,230. In three sessions, the index haslost about 1,600 points after gaining over 3,000 points in 11 consecutive sessions.On NSE, the Nifty lost 159 points to close at 19,742.On Wednesday night, after the US Federal Reserve’s rate setting committee let the interest rates be unchanged, chairman Jerome Powell left the door open for further rate hikes if the relevant data supports such a move. This unnerved global investors who sold risky assets that included equities.In the Indian market, rising crude oil prices, weakness of the rupee and an almost unabated selling by foreign investors also weighed on investor sentiment, market players said.According to Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services, domestic markets slid for the third consecutive day after the US Fed’s hawkish stance in its policy meeting. “Uncertain global cues and persistent selling by FIIs are likely to keep markets under pressure in the near term,” Khemka said.So far in the month, foreign portfolio investors have net sold stocks worth about Rs 11,300 crore, after remaining net buyers for six consecutive months since March this year, CDSL and BSE data showed.SJVN stock crashes 13% as OFs weighs:The stock price of power producer SJVN crashed 13% in Thursday’s weak market as the government decision to divest nearly 5% stake in the company, through an offer for sale (OFS) left investors concerned about excessive supply of these shares in the market. The stock on BSE closed at Rs 71. The government is eyeing to mobilise about Rs 1,334 crore through this divestment.

Sensex drops 571 points as US Federal Reserve remains hawkish

The US Federal Reserve's hawkish stance on rates led to a decline in the Indian stock market, with the Sensex dropping 571 points. This comes after the index gained over 3,000 points in 11 consecutive sessions. Factors such as rising crude oil prices, weakness of the rupee, and continued selling by foreign investors also contributed to the negative sentiment. Additionally, the stock price of power producer SJVN crashed 13% due to concerns about excessive supply caused by the government's decision to divest stake in the company.

Government to divest 5% in SJVN, eyes rs1,334cr

The government plans to sell a 5% stake in power producer SJVN through an offer for sale (OFS) route, which could generate approximately Rs 1,334 crore. The OFS is priced at Rs 69 per share, offering a 15.6% discount to Wednesday's closing price of Rs 82. The base size of the offer is 9.7 crore shares, with an option for additional shares.

Govt to divest 5% in SJVN, eyes 1,334cr

The Indian government is selling around 5% stake in power producer SJVN through an offer for sale (OFS) at a discounted price of Rs 69 per share. The OFS could raise approximately Rs 1,334 crore, reducing the government's stake in SJVN to about 55%. The base size of the offer is 9.7 crore shares, with a green-shoe option for additional shares. The Himachal state government currently holds around 27% in the company.