Sensex Sinks 1100 Points As Worries Over Fed Hikes Triggers Recession Fears

Indian markets ende trading lower today on worries that the US Fed induced rate hikes, would cause a recession in the US. Indian shares on Friday, were dragged by losses in technology and automobile stocks amid a broader weak sentiment over concerns of a global recession. Indices dropped sharply by slightly more than 2% .

Broader Asian shares also declined on Friday, following strong declines in U.S. stocks overnight due to concerns over the Federal Reserve's rapid tightening in response to the World Bank and the International Monetary Fund's predictions of a worldwide recession.

Among the shares that declined in trade today were UPL, Tata Consumer Products, which saw cuts of nearly 4 to 5%. IndusInd Bank and Cipla were the two stocks from the Nifty that were strong in trade.

IT stocks were the big losers on worries that a recession in the US could pose troubles for the IT biggies. A recent downgrade by Goldman Sachs further dampened investor sentiment amid concern that aggressive rate hikes by the US would plunge the US, the biggest market for Indian IT services firms, deeper into the risk of recession.

Earlier this week, rating agency Fitch reduced India's projected gross domestic product growth for the current fiscal year from 7.8% to 7% in light of a slowdown brought on by increased inflation, tighter monetary policy, and economic stress on a global scale.