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NEW DELHI: Tracking Asian peers, both Indian indices-sensex and Nifty-opened lower on Thursday.
The BSE bench mark sensex was down over 190 points and Nifty was down by over 80 points and trading below 19,000-mark.
The risk sentiment is anticipated to remain muted following the US Federal Reserve’s indication that it foresees higher interest rates persisting for an extended period.
The US Federal Reserve decided to maintain its current interest rates on Wednesday but adopted a more hawkish stance. They anticipate another rate hike by the end of this year and intend to keep monetary policy considerably tighter through 2024, deviating from their earlier projections.
Similar to their outlook in June, the median among Fed policymakers still envisions the central bank’s benchmark overnight interest rate peaking within the range of 5.5-5.75% this year, just a quarter percentage point above the current range. They expect the federal funds rate to reach 5.1% by the close of 2024 and 3.9% by the end of 2025.
Both sensex and Nifty had declined by over 1 per cent on Tuesday ahead of the US Fed’s policy decision.
The plunge in sensex on Wednesday came after a record rally of 11 sessions that added about 3,000 points to the index.
“The domestic markets remained under pressure due to rising US bond yields and a stronger greenback,” Vinod Nair, head of research at Geojit Financial Services, had told PTI yesterday.
Amid weak global market trends, investors’ have lost over Rs 2.89 lakh crore in two days of market fall, a PTI report said.
Both the benchmark indexes have declined by approximately 1.5% this week, following their nearly 2% increase and attainment of all-time highs last week.
On Wednesday, foreign investors registered net sales amounting to 31.11 billion rupees ($375.18 million), while domestic investors sold 5.73 billion rupees, as indicated by stock exchange data.
(With inputs from agencies)
The BSE bench mark sensex was down over 190 points and Nifty was down by over 80 points and trading below 19,000-mark.
The risk sentiment is anticipated to remain muted following the US Federal Reserve’s indication that it foresees higher interest rates persisting for an extended period.
The US Federal Reserve decided to maintain its current interest rates on Wednesday but adopted a more hawkish stance. They anticipate another rate hike by the end of this year and intend to keep monetary policy considerably tighter through 2024, deviating from their earlier projections.
Similar to their outlook in June, the median among Fed policymakers still envisions the central bank’s benchmark overnight interest rate peaking within the range of 5.5-5.75% this year, just a quarter percentage point above the current range. They expect the federal funds rate to reach 5.1% by the close of 2024 and 3.9% by the end of 2025.
Both sensex and Nifty had declined by over 1 per cent on Tuesday ahead of the US Fed’s policy decision.
The plunge in sensex on Wednesday came after a record rally of 11 sessions that added about 3,000 points to the index.
“The domestic markets remained under pressure due to rising US bond yields and a stronger greenback,” Vinod Nair, head of research at Geojit Financial Services, had told PTI yesterday.
Amid weak global market trends, investors’ have lost over Rs 2.89 lakh crore in two days of market fall, a PTI report said.
Both the benchmark indexes have declined by approximately 1.5% this week, following their nearly 2% increase and attainment of all-time highs last week.
On Wednesday, foreign investors registered net sales amounting to 31.11 billion rupees ($375.18 million), while domestic investors sold 5.73 billion rupees, as indicated by stock exchange data.
(With inputs from agencies)
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