Mumbai: Benchmark equity indices fell in early trade on Thursday after weak global markets amid a hawkish stance by the US Federal Reserve.
The 30-share BSE Sensex fell 186.74 points to 62,491.17 points. The broader NSE Nifty fell 51.95 points to 18,608.35.
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.
This can be attributed to the hawkish comments from the US Fed which indicated that it will keep rates higher over the next year, said Prashanth Tapse – Research Analyst, Senior Vice President (Research), Mehta Equities Ltd.
Elsewhere in Asia, stock markets in Seoul, Tokyo, Shanghai and Hong Kong traded lower.
US markets ended in negative territory on Wednesday.
“Although the Fed cut its rate hike to 50 basis points as expected, the tone of the comments was unexpectedly hawkish.” Globally, equity markets would be keeping an eye on the ECB (European Central Bank) and BoE (Bank of England) decisions today, which are also likely to increase by 50 basis points.
“The Indian market, while not completely divorced from the US parent market, has charted a slightly different path showing surprising resilience even in the face of global weakness.” This is due to India’s superior growth and earnings outlook going forward,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
The reference index of the Belgrade Stock Exchange rose by 144.61 points or 0.23 percent and settled at 62,677.91 on Wednesday. The Nifty advanced 52.30 points or 0.28 percent to end at 18,660.30.
The international reference price of Brent crude fell 0.65 percent 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.