In Short
- Domestic markets open lower after US Fed’s ‘hawkish’ rate pause
- Pharma, FMCG stocks offer support
- Weekly expiry to drive volatility
By Koustav DasBenchmark stock market indices opened lower on Thursday as investors turned cautious after the US Federal Reserve’s hawkish rate pause.
The S&P BSE Sensex fell 94.74 points to 63,133.77 at 9:30 am, while the NSE Nifty 50 was down 0.07 per cent at 18,742.95. While most of the broader market indices were trading in positive territory, high volatility capped gains in early trade.
The impact of the US Fed’s decision was felt by heavyweight sectoral indices such as Nifty Bank and Nifty Financial Services, which were trading in negative territory. Nifty IT was the top loser among sectoral indices, while Nifty FMCG and Nifty Pharma offered support.
The top five gainers on the Nifty 50 were Divi’s Laboratories, Apollo Hospitals, Britannia, Cipla and Adani Enterprises. On the other hand, the top drags were IndusInd Bank, Infosys, HDFC Life, Hindalco and ONGC.
While the rate pause by the US Federal Reserve was expected to boost global markets, the central bank also indicated that it will increase rates at least twice this year to combat inflation. This led to a fluctuation in US stocks, the effects of which were felt on Dalal Street too.
Also Read | US inflationFed leaves rates unchanged, sees two small hikes by end of 2023
Om Mehra, research analyst at Choice, said, “Benchmark indices are on the cusp of reaching an all-time high, aided by overall sectors. However, in the last couple of days, benchmark indices have outlined the global. We anticipate that pharma and commodities-related stocks will perform better in today’s session.”
“The Indian market is anticipated to trade with large swings due to weekly expiry,” he added.
Rodolfo Frami
Keven Bayer
