Markets open lower as Fed hike interest rate

15/12/2016 09:22

The key domestic benchmark indices opened lower in the morning trading session after the US Federal Reserve raised key interest rates, in line of expectations, by 25 basis points to between 0.50 per cent and 0.75 per cent.

The investors also reacted to the Federal Open Market Committee commentary that signaled of faster pace of tightening than was previously expected, a move which will curb appetite for riskier assets.

Back home, India’s wholesale price index (WPI) eased to five-month low of 3.15 per cent in November as compared to 3.39 per cent in the previous month, bolstering the case for interest rate cuts from the Reserve Bank of India.

At 09:20 a.m, the Bombay Stock Exchange bellwether Sensex was trading at 26552.86 down by 49.98 points or by 0.19 per cent, while the NSE Nifty was at 8165.45 points, trading lower by 17 points or by 0.21 per cent.

The top gainers of the BSE Sensex pack were Adani Ports & Special Economic Zone Ltd. (Rs. 287.30,+1.27 per cent), Wipro Ltd. (Rs. 467.90,+0.61 per cent), Cipla Ltd. (Rs. 570.00,+0.27 per cent), Housing Development Finance Corporation Ltd. (Rs. 1267.00,+0.10 per cent), GAIL (India) Ltd. (Rs. 419.50,+0.10 per cent), among others.

Meanwhile, Axis Bank Ltd. (Rs. 456.10,-2.32 per cent), State Bank of India (Rs. 259.35,-1.28 per cent), Maruti Suzuki India Ltd. (Rs. 5080.00,-1.21 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 201.35,-1.15 per cent), Coal India Ltd. (Rs. 289.00,-1.11 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 379 shares traded, 122 shares advanced, 238 shares declined while 19 were unchanged.

On the global front, Asian stocks were trading lower today after of the US Federal Reserve hiked interest rates for the first time in a year and also indicated of faster pace of tightening than was previously expected. US stocks closed lower in the previous trading session after the Federal Reserve raised key interest rates by 25 basis points to between 0.50 per cent and 0.75 per cent, the first time in a year.

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