Benchmark indices abruptly snapped a two-day gain as concerns grew over the health of the world economy following the IMF’s dire forecast that over a third of the globe could tip into recession this year even as investors nervously awaited the release of the US Fed meeting minutes.

While the Sensex slipped 637 points, the broader Nifty fell below 18050. The correction saw investors losing close to Rs 2.91 lakh crore.

In October 2022, the IMF had trimmed its growth forecast for 2023. It had forecast that the global growth would slow from 6 per cent in 2021 to3.2 per cent in 2022 and 2.7 percent in 2023. Analysts feel that though the Indian economy has shown resilience, the global conditions will have some impact on its health.

Amid these worries, investors were also awaiting release of the Fed minutes which is likely to give indications about the interest rate trajectory. It is widely expected that the minutes will say that interest rate hikes will continue this year, but at a reduced pace.

However, the focus of the markets is whether the US central bank will signal if there is any endgame in sight. Any dovish forecast in this regard is likely to lead to a rally. At Dalal Street, the 30- share Sensex opened flat at 61294.65 and fell to an intra-day low of 60593.56 — a drop of over 700 points.

It later ended at 60657.45, a drop of636.75 points or 1.04 per cent. The NSE Nifty ended lower189.60 points at 18042.95. “The domestic market, affected by the worries in the global market, traded with deep cuts. Fears over aggressive rate hikes resurfaced ahead of the release of Fed meeting minutes. Apart from global cues, the domestic market will pay attention to earnings,’’ Vinod Nair, head of research at Geojit Financial Services, said.