Equity benchmarks halted their rally on Thursday as the Sensex fell over 214 points in early trade, tracking weak trends in global markets. The 30-share BSE index fell 214.11 points to 60,046.02 in early trade. The broader NSE Nifty fell 61.85 points to 17,882.40. Among the Sensex pack, the biggest laggards were Dr Reddy’s Laboratories, Sun Pharma, Wipro, Infosys, Tata Consultancy Services, Reliance Industries, Bajaj Finserv and Nestle.
On the other hand, winners included Power Grid, State Bank of India, UltraTech Cement and Kotak Mahindra Bank. In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong traded lower in mid-session deals. Markets on Wall Street ended lower on Wednesday. The BSE index jumped 417.92 points or 0.70 percent to settle at 60,260.13 on Wednesday. The Nifty was up 119 points or 0.67 percent at 17,944.25. Meanwhile, international benchmark Brent crude traded 0.10 percent higher at $93.74 a 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 stock market data. “Fed notes suggest continuation of hawkish stance and this may slightly affect the sentiments in the US parent market. However, it is unlikely to affect the bullish sentiments in India as the return of FIIs has completely changed the market sentiment and the bulls are now testing it,” 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 edge lower in early trade on Thursday after the FOMC (Federal Open Market Committee) meeting indicated that the Fed will remain on course hawkish. the decision to raise at its next meeting triggered a sharp fall in US markets.
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