Sensex, Nifty Fall After US Fed Hikes Rate: Five Things To Know

The US Fed, in its first meeting under Chairman Jerome Powell, has kept the expected number of rate hikes for 2018 the same at three.

Market | Written by | Updated: March 22, 2018 14:09 IST
Sensex, Nifty Fall After US Fed Hikes Rate: Five Things To Know

On Wednesday, the Sensex closed at 33136.18 while the Nifty50 settled at 10155.25.

The S&P BSE Sensex fell over 130 points to slip below 33,000 points on Thursday in the afternoon trade after the US Federal Reserve hiked key interest rates by 25 basis points for the first time in the year. The broader Nifty50 opened above the psychologically crucial level of 10,150 at 10,165.65 but fell in the afternoon trade to hover around 10,108 points. In overnight trade, the US markets closed lower. On Wednesday, the Sensex closed at 33,136.18 while the Nifty50 settled at 10155.25 mark.
Here are five things you need to know about the trading in domestic markets today:
  1. At 1.23 pm, Sensex fell nearly 97 points to trade at 33,039 points. Nifty fell 22 points to trade at 10,133 points. Telecom and realty indices fell by over 1 per cent each.
  2. At 12.50 pm, top gainers of Sensex stocks were ONGC that soared by nearly by 3 per cent. This was followed by Tata Motors and Reliance that surged by up to 2 per cent. Other gainers included IndusInd Bank and HDFC Bank that rose by 1.2 per cent and 1 per cent respectively.
  3. The laggards among Sensex stocks were ICICI Bank, Mahindra & Mahindra (M&M) and SBI that fell between 1 per cent and 1.9 per cent. Similarly, Axis Bank and Wipro shares fell by up to 1 per cent.
  4. "The market is going to be range bound considering the year ending 31st march is due, and the way that market has not broken the psychological level of 10,000, immediate bounce back and the spike is observed. There has been a strong foundation built up near the 10,000 level. Hence right now watch on market will be sell on rise for traders and for investors it is a good buying opportunity at all the deeper levels," said Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital.
  5. "An unchanged path of Fed hike for this year is a relief, as three hikes are already factored by the markets. Importantly Mr Powell mentioned in his speech that he would be more guided by the actual movement of inflation and changes in unemployment in the coming months. With Fed hike behind us, the markets would now watch how Donald Trump's tariff agenda plays out," said Raghvendra Nath, Managing Director, Ladderup Wealth Management.


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