Nifty ends below 7450, Sensex sheds 6% in Jan F&O series

Moneycontrol BureauThe market has ended lower amid volatility on January Future and Options (F&O) series expiry day. The Nifty ended below 7450-level, down 13.10 points or 0.2 percent at 7424.65. The Sensex closed down 22.82 points at 24469.57. The Sensex has shed 6.3 percent and Nifty lost  6.6 percent in  January series. Bears tightened grip on Dalal Street as the US Fed spooks global markets on health of the US economy.

There were no surprises in store last night when the US Federal Reserve maintained a status quo in its January monetary meet. Chief Janet Yellen and her colleagues are keeping a very close watch on what's happening across global markets.

In the dovish statement, Federal Open Market Committee (FOMC) was trying to be cautious, says Peter Hooper of Deutsche Bank. Speaking to CNBC-TV18, Hooper says the US Fed will have a "wait and watch approach" and will be recognising the downside risks amid the recent softening of data. He expects three gradual rate hikes within this year and is of the view that it may hike once in March. Until the markets bounce back with a significant change, there won't be a rate hike, he adds.

Meanwhile, banks and capital goods indices fell most losing 1-2 percent from previous close. FMCG index led by HUL and ITC gained most today. M&M, Reliance and Sun Pharma were top gainers. L&T, Bharti, Hindalco, Axis Bank and BHEL were major laggards in the Sensex.

ICICI Bank's asset quality worsened by more than 34 percent in December quarter. Provisions also rose 3-fold, profits and net income are in-line with expectations.

US pharma watchdog has observed that certain failed results have not been reported by Wockhardt during its inspection at the Shendra facility.