IT, metals drag Sensex, Nifty50 lower amid hawkish US Fed stance | Jobs Vox

• BSE with 30 stocks Sensex fell by 305 points to 62,367 doc Nifty50 it fell by 87.95 points to 18,572.
• Overall sentiment was negative in all markets as the US Federal Reserve signaled that interest rates will rise more than expected next year.
• Of the Sensex pack, Tech Mahindra, Infosis, HCL Technologies, Tata Consultancy Services, Titan and UltraTech Cement were the top laggards.
• On Wednesday, the US Federal Reserve raised interest rates by 50 basis points to the highest level in 15 years.

Indian benchmarks traded lower on Thursday following weak signals from global markets due to the hawkish stance of the US Federal Reserve.

The 30-share BSE Sensex fell 348 points to 62,329, while the Nifti50 fell 96.10 points to 18,564, at 11:49 am on December 15.

Of the Sensex pack, Tech Mahindra, Infosis, HCL Technologies, Tata Consultancy Services, Titan and UltraTech Cement were the top laggards. IndusInd Bank, State Bank of India, Mahindra & Mahindra and NTPC were among the winners.

Among other stocks, IRCTC fell more than 5% to ₹kk after the government announced it will sell a 5% stake in the company through an offer for sale (OFS) on Thursday and Friday. Up to 4 million shares will be offered at a fixed price of INR 680 per share.

Overall sentiment was negative in all markets as the US Fed signaled that interest rates will rise more than expected next year.

On Wednesday, the US Fed raised interest rates by 50 basis points to 4.25-4.5%, the highest level in 15 years. The terminal rate is now projected at 5.1%, which is 50 basis points higher than the projections from September this year.

Asian markets also traded lower with the Hang Seng down 1.30%, the Nikkei 225 down 0.41%, the Shanghai SE Composite Index down 0.34%, while the Taiwan SE Weighted Index was down 0.04%.

The the US market it finished lower on Wednesday with the S&P 500 down 0.61%. The tech-heavy Nasdaq closed 0.76% lower, while the Dow Jones ended down 0.42%. give % as we usually do

“The world has been struggling with high inflation, the likes of which has not been seen in the last 40 years.” The Fed was late to act, but did so anyway with the four largest rate hikes of 75 bps each. However, with the inflation figure at 7.1%, the Fed chief delivered on what he promised, a slowdown in interest rate hikes,” said Apurva Sheth, head of market outlook and research at Samco Securities.

“Markets did not react positively as the Fed raised its terminal interest rate projection from 4.6% to 5.1%,” Sheth added.

International Brent crude fell 0.65% to $82.16 per barrel.

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

“Although the Fed cut its rate hike to 50 basis points as expected, the tone of the comments was unexpectedly hawkish.” Globally, equity markets will be keeping an eye on the ECB (European Central Bank) and BoE (Bank of England) decisions today, which are also likely to be hikes of 50 basis points,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

(With inputs from PTI)

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