After initial euphoria, the markets are getting restless; Sensex, Nifty end flat

Business

Domestic stock markets plummeted on Wednesday after the RBI surprisingly hiked interest rates to 4.40 percent

Domestic stock markets plummeted on Wednesday after the RBI surprisingly hiked interest rates to 4.40 percent

Stock markets gave up early gains at the close of Thursday’s trading to settle on a flat note amid profit-taking.

The 30-part BSE benchmark Sensex was up 897.77 points, or 1.61 percent, to 56,566.80 for the day. But it erased most of the gains, closing just 33.20 points, or 0.06 percent, higher at 55,702.23.

Similarly, the NSE Nifty was up 5.05 points, or 0.03 percent, to 16,682.65.

From the Sensex package, big winners included Tech Mahindra, Infosys, HCL Technologies, Tata Steel, Wipro, ITC, HDFC, TCS, Kotak Mahindra Bank, and ICICI Bank.

In contrast, laggards included IndusInd Bank, Sun Pharma, Nestle, UltraTech Cement, Reliance Industries, PowerGrid, Bajaj Finserv and Titan.

Elsewhere in Asia, Hong Kong settled lower while Shanghai was marginally higher. Markets in Japan and Korea were closed for public holidays.

Stock markets in Europe traded with gains in the afternoon session.

U.S. stock markets rose in overnight trade on Wednesday.

The Federal Reserve stepped up its fight against the worst inflation in 40 years by raising its short-term interest rate by half a percentage point on Wednesday.

“US stocks rallied to post their biggest one-day gain since 2020 after comments from the Federal Reserve suggested the central bank is unlikely to consider a higher rate hike of 75 basis points in the coming months.

“Furthermore, the interest rate hike and the extent of the balance sheet liquidation went along the expected line without any negative surprises, which was already taken into account in the market correction of the last few days. It was sort of like a recovery rally,” said Mitul Shah, head of research at Reliance securities.

Domestic stock markets tumbled on Wednesday after the RBI surprisingly hiked interest rates to 4.40 percent in a bid to curb inflation.

The BSE benchmark was down 1,306.96 points, or 2.29 percent, to 55,669.03, while the Nifty fell 391.50 points, or 2.29 percent, to 16,677.60.

Meanwhile, the international oil benchmark Brent rose 0.27 percent to $110.4 a barrel.

Overseas institutional investors sold shares worth Rs.3,288.18 crore on Wednesday, according to stock market data.

“US markets closed higher yesterday (Wednesday) after the Fed announced a 50 basis point rate hike. Jerome Powell said a 75 basis point hike is not something the committee is actively considering. That statement caused a market rally,” said Mohit Nigam, Head – PMS, Hem Securities.

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