Global Market Jitters: Sensex and Nifty Dive Amid US Fed Concerns

Sensex and Nifty plunged about 1.5% amid global market concerns driven by the US Federal Reserve's hawkish stance. This marks the fifth consecutive session of decline. An across-the-board sell-off exacerbated by foreign investor sell-offs contributed to the market's bearish trend, impacting mid and small-cap stocks significantly.

Global financial markets witnessed a sharp downturn on Friday as India's key indices, Sensex and Nifty, plunged around 1.5%, driven by persistent risk aversion following the US Federal Reserve's hawkish stance on future rate cuts.

Broad-based selling, fueled by foreign investors exiting local stocks, heightened pressure on the markets. Both midcap and smallcap stocks bore the brunt of this sell-off as investors grappled with historical valuation premiums.

The financial rout, affecting all sectoral indices, was compounded by apprehensions over incoming trade policies from the US, leading to uncertainty in markets across Asia and Europe, and impacting Wall Street's performance as well.

(With inputs from agencies.)