Last Updated: March 23, 2023, 09:48 IST
Sensex Today: The benchmark indices opened decrease in Thursday’s commerce, as world sentiments turned weaker after the US Federal Reserve indicated one other fee hike this 12 months put up a 25 foundation level improve in March assembly.
Key indices Nifty50 lowered over 50 factors to commerce under 17,100 ranges, whereas the S&P BSE Sensex declined over 300 factors to commerce round 57,911 ranges.
Broader markets, too, inched decrease in commerce as Nifty Midcap 100 and Nifty Smallcap 100 indices fell as much as 0.3 per cent. Volatility gauge, India VIX, in the meantime, climbed over 1 per cent.
Barring Nifty Pharma index that held marginal good points in a weak market, all sectors plunged within the sea of pink. Nifty IT index was the worst because it declined 1 per cent.
Among particular person shares, shares of Hindustan Aeronautics (HAL) declined over 5 per cent after the federal government proposed to sellup to three.5 % of its stake through OFS.
Besides, shares of Coromandel International gained over 1 per cent after the corporate deliberate diversification into speciality and industrial chemical substances.
Dr. V Okay Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated: “The 25 bp rate hike by the Fed and dovish commentary were on expected lines. The Fed is trying its best to balance inflation control with financial stability. The strong message from Jerome Powell that “the US banking system is sound, resilient and well capitalised with adequate liquidity” ought to calm the markets. But the late day sell-off was triggered by the Treasury Secretary Janet Yellen’s remark that they aren’t contemplating blanket deposit insurance coverage. This sort of gyrations occur in a extremely unstable whipsawing market pushed by each day doses of stories. The Fed has signalled maybe yet another fee hike this 12 months after which a pause. Investors must anticipate solely reasonable returns from the market within the current context of excessive rates of interest. Investment in mounted earnings and systematic funding in top quality shares for the long-term is the perfect funding technique now.”
Global Cues
Asian stocks struggled Thursday in the wake of a slump on Wall Street after Treasury Secretary Janet Yellen rattled bank shares and the Federal Reserve pushed back against bets for interest rate cuts this year. Benchmark indexes fell in Japan, South Korea and Australia while a gauge of US-listed Chinese companies fell earlier. Weakness in the dollar may help some assets in Asia, particularly in emerging markets.
Wall Street gyrated to end sharply lower on Wednesday after the US Federal Reserve delivered a widely expected 25 basis point policy hike, while hinting that it was on the verge of pausing future increases in view of recent turmoil in the financial sector.
Oil prices fell on Thursday following three sessions of gains, after U.S. Federal Reserve Chair Jerome Powell re-stated his commitment to curbing inflation, including the possibility of more interest rate rises.
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