Benchmark indices fell for the second straight session on Thursday, in line with weak global cues following the US Federal Reserve’s interest rate hike and hawkish stance.Sensex declined 337.06 points to settle at 59,119.72. During the day, it tanked 624 points to 58,832.78. Nifty lost 88.55 points to close at 17,629.80.
Power Grid, HDFC Bank, HDFC, Axis Bank, Bajaj Finserv, ICICI Bank and UltraTech Cement were the top Sensex losers, falling up to 2.80 per cent. Titan, Hindustan Unilever, Asian Paints, Maruti and ITC were the top Sensex gainers, rising up to 2.73 per cent.
Vinod Nair, Head of Research at Geojit Financial Services said, “Fed turned more hawkish than anticipated increasing its rate forecast to 4.4 per cent by the end of 2022. The indication is that 125 bps more rate hikes can be expected in the next 2 policy meetings scheduled this year. Following this, the US dollar index rose above 111, depreciating INR to beyond 80. Indian stock market was able to sustain its resilience with limited cuts but if the rupee continues its weakness domestic market would turn less attractive for foreign investors in the short-term, effecting performance,”
However, mid-cap and small-cap indices on BSE rose 82 points and 138 points, respectively.
Share Market News Today Highlights: Sensex, Nifty extend fall for second day; Fortis Healthcare shares crash 15%
Banking shares were the top sectoral losers with their BSE index falling 680 points. The BSE consumer durables index rose the most by 411 pts, capping losses for the broader market.
Rupak De, Senior Technical Analyst at LKP Securities said,”The Nifty remained volatile during the day as the market participants adjusted positions according to the FOMC outcome. On the daily chart, Nifty formed a small-bodied candle with wicks on both sides, suggesting indecisiveness. However, weakness may persist as long as it remains below 17700. On the lower end, support is visible at 17500.”
Market breadth was positive with 1,814 stocks ending higher against 1,628 stocks falling on BSE. 147 shares were unchanged. Market cap of BSE-listed firms rose to Rs 281.54 lakh crore against Rs 281.17 lakh crore in the previous session.
Foreign institutional investors (FIIs) offloaded shares worth a net Rs 461.04 crore on Wednesday after two days of buying, according to data available with the BSE.
Meanwhile, rupee tanked 99 paise to close at all-time low of 80.95 against the US dollar.
Previous session
Benchmark indices closed lower on Wednesday amid mixed global cues ahead of the US Fed decision on interest rates. Sensex fell 262.96 points or 0.44 per cent to end at 59,456.78. During the day, it tanked 444.34 points or 0.74 per cent to 59,275.40. Nifty declined 97.90 points or 0.55 per cent to close at 17,718.35.
Global markets
Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended lower. European bourses were trading in the red in mid-session deals. The US markets ended in the negative territory on Wednesday. Meanwhile, the international oil benchmark Brent crude climbed 0.55 per cent to $90.32 per barrel.
