Stock Market: Sensex Falls 140 Points, Nifty Holds 18,600 After US Fed Hikes Rates By 50 Bps

Stock update: TechM was the prime loser, followed by HCL, Infosys, Titan, TCS, Asian Paint, HUL, ICICI Bank, Tata Steel, Nestle, Reliance, and others on the 30-share BSE Sensex platform

The two domestic equity benchmarks, Sensex and Nifty, opened lower on Thursday tracking weak global trends after the US Federal Reserve raised interest rates by 50 basis points (bps). The Federal Reserve will deliver more interest rate hikes next year even as the economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the US central bank does not get a firmer grip on inflation.

The S&P BSE Sensex went down by 140 points to 62,536, while the broader NSE Nifty was trading at 18,621, down by 39 points.

On the 30-share Sensex platform, TechM was the prime loser, followed by HCL, Infosys, Titan, TCS, Asian Paint, HUL, ICICI Bank, Tata Steel, Nestle, Reliance, and others. On the flip side, Sun Pharma was the lead gainer, up 0.63 per cent. The others were IndusInd Bank, SBI, M&M, Dr Reddy, HDFC Bank, NTPC, and Kotak Bank.

The overall sentiment of the 30-share Sensex was negative as 23 scrips were declining, while only seven were advancing.

In the broader markets, Nifty MidCap 100 and Nifty SmallCap 100 indices gained up to 0.1 per cent.

Sectorwise, Nifty Pharma, Nifty PSU Bank, and Nifty Realty indices started trade with marginal gains - up to 0.5 per cent. On the flipside, Nifty Bank, Nifty IT, and Nifty FMCG indices remained bogged down in trade.

Among individual stocks, shares of IDBI Bank gained over 2 per cent after the government extended deadline for bidders to January 7, 2023.

In the previous session on Thursday, the BSE Sensex gained 145 points (0.23 per cent) to close at 62,678, while Nifty gained 52 points (0.28 per cent) to end at 18,660. The indices hit intra-day highs of 62,835 and 18,696, respectively.

Meanwhile, the rupee depreciated 15 paise to 82.64 against the US dollar in early trade on Thursday after the US Federal Reserve's interest rate hike and its hawkish stance dented investor sentiments.

Forex dealers said strong dollar against key rivals overseas and losses in the domestic equity markets sapped risk appetite.

At the interbank foreign exchange, the domestic unit opened sharply lower at 82.63 against the dollar, then slipped further to 82.64, a decline of 15 paise over its previous close. In the previous session on Wednesday, the rupee settled 11 paise higher at 82.49 against the US dollar.

Brent crude futures, the global oil benchmark, fell 0.69 per cent to $82.13 per barrel.

Foreign institutional investors (FIIs) were net buyers in capital markets on Wednesday as they bought shares worth Rs 372.16 crore, according to exchange data.