Stock Market: Sensex Sheds 100 Points, Nifty Trades Below 18,750. Metal, IT Drag, FMCG Gains
Stock update: On the 30-share Sensex platform, IndusInd Bank, Infosys, TCS, PowerGrid, NTPC, Reliance were among early losers
The two key equity benchmarks, Sensex and Nifty, on Thursday opened in losses following the US Fed's forecast that rate hikes may resume after a pause last night which surprised global markets. At 9.45 am, the BSE Sensex dropped 104 points to 63,124. On the other hand, the NSE Nifty50 slipped 16 points to 18,740.
On the 30-share Sensex platform, IndusInd Bank, Infosys, TCS, PowerGrid, NTPC, Reliance were among early losers. On the flip side, Maruti, Nestle, HCL, Asian Paints, Sun Pharma, UltraCemco emerged gainers.
#ABPStockMarketWatch | Sensex and Nifty on Thursday were trading in the green after paring early losses
— ABP LIVE (@abplive) June 15, 2023
At 10:26 AM, #Sensex rose by 78 points to 63,306 & #Nifty by 35 points to 18,791
Here's a look at the stocks in focus:#ABPLive #MarketWatch pic.twitter.com/XPam9OcEM3
In the broader markets, the BSE Midcap and Smallcap indices rose 0.2 per cent each.
Sectorwise, metals and IT indices were trading in the red, while pharma and FMCG stocks were the only outliers gaining 0.7 per cent each.
In the previous session on Wednesday, the Sensex settled 85 points higher at 63,229. On the other hand, the NSE Nifty 50 ended with a gain of 40 points at 18,756.
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 $73.02 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,714.72 crore on Wednesday, according to exchange data.
Meanwhile, the rupee depreciated 16 paise to 82.21 against the US dollar in early trade on Thursday, pulled down by the strength of the American currency on the back of a hawkish US Federal Reserve.
At the interbank foreign exchange, the domestic unit opened at 82.16, then fell to 82.21, registering a decline of 16 paise over its last close amid a negative trend in domestic equities. On Wednesday, the rupee settled at 82.05 against the dollar helped by robust macro fundamentals, FII inflows and a weak greenback against major rivals overseas.
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