Wednesday, December, 06,2023

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Markets fall in early trade

Mumbai: Benchmark equity indices declined in early trade on Thursday after hawkish commentary from the US Fed on interest rates.

After rallying for the past three days, the 30-share BSE Sensex fell 158.16 points to 63,070.35. The NSE Nifty dipped 34.15 points to 18,721.75.

From the Sensex pack, IndusInd Bank, Infosys, Tata Consultancy Services, Reliance Industries, NTPC, Bajaj Finserv, Axis Bank, Power Grid, Tata Steel and State Bank of India were the major laggards.

Maruti, HCL Technologies, Sun Pharma, Nestle and UltraTech Cement were among the gainers.
In Asian markets, Seoul traded lower, while Tokyo, Shanghai and Hong Kong quoted in the green.
The US markets ended on a mixed note on Wednesday.

The US Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month.

"The Fed decision to skip rate hikes was overshadowed by the more hawkish-than-expected commentary. The Fed chief’s comment that 'nearly all committee participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year' is negative news," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global oil benchmark Brent crude dipped 0.25 per cent USD 73.02 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,714.72 crore on Wednesday, according to exchange data.

"Although the Fed left rates unchanged, it has kept the window open for another 50 bps hike in key rates for the year in case inflation remains sticky, which could probably spoil the party for investors who were hoping for a more dovish comment.

"With uncertainty over policy rates hanging around, the market may remain choppy with strong bouts of intra-day volatility, even as selective buying would continue as an ongoing theme," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The Sensex had climbed 85.35 points or 0.14 per cent to settle at 63,228.51 on Wednesday. The Nifty advanced 39.75 points or 0.21 per cent to end at 18,755.90. (PTI)

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