Stock Market: Sensex Sinks 150 Points, Nifty Holds 17,850 Tracking Weak Global Cues
Stock update: Dr Reddy's Laboratories, Sun Pharma, Wipro, Infosys, Tata Consultancy Services, Reliance Industries, Bajaj Finserv, and Nestle were among the biggest losers on the BSE
Sensex and Nifty, the two key equity benchmarks, on Thursday snapped their free run and started trade in the red, tracking negative global cues. The two domestic indices halted their rally as minutes from the Federal Reserve’s July meeting stirred debate on the direction for US interest rates. The two major indices declined over 200 points in early trade, however, later they recouped some of the losses.
At 10.30 am, the BSE Sensex was trading 157 points lower at 60,103, while the broader NSE Nifty was at 17,893, down 50 points.
On the 30-share Sensex platform, Dr Reddy's Laboratories, Sun Pharma, Wipro, Infosys, Tata Consultancy Services, Reliance Industries, Bajaj Finserv, and Nestle were among the biggest laggards. On the flip side, Power Grid, State Bank of India, UltraTech Cement, and Kotak Mahindra Bank were among the gainers.
In the broader markets, Nifty Midcap 100 and Nifty Smallcap 100 surged up to 0.2 per cent.
Sectorwise, Nifty PSU Bank and Nifty Realty were leading. Nifty Pharma and Nifty Bank, however, were the losing among the pack.
“The Fed minutes suggest continuation of the hawkish stance and this may slightly impact sentiments in the mother market, US. But this is unlikely to impact the bullish sentiments in India since the return of the FIIs have completely altered the market mood and the bulls are calling the shots now," said V K Vijayakumar, chief investment strategist, Geojit Financial Services.
Prashanth Tapse - research analyst, senior VP (research), Mehta Equities Ltd, said, “Benchmark indices are expected to drift lower in early trades on Thursday, after the FOMC (Federal Open Market Committee) meeting minutes that indicated Fed to stay hawkish on rate hike decision in its next meeting triggered a sharp fall in the US markets.”
In the previous session on Wednesday, the Sensex jumped 417 points (0.70 per cent) to end at 60,260. The Nifty went higher by 119 points (0.67 per cent) to 17,944.
In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower in mid-session deals. Markets on the Wall Street had ended lower on Wednesday.
Meanwhile, the international oil benchmark Brent crude was trading 0.10 per cent higher at $93.74 per barrel.
Foreign Institutional Investors (FIIs) were net buyers in the Indian capital market as they bought shares worth Rs 2,347.22 crore on Wednesday, according to exchange data.
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