India's Sensex Snaps Winning Streak on Disappointment Over Fed
(Bloomberg) -- India’s shares declined Thursday with peers across Asia on concerns investor appetite for emerging-market assets will wane after the U.S. Federal Reserve raised interest rates and indicated two more hikes next year.
The S&P BSE Sensex fell 0.1 percent to 36,431.67 in India, snapping a seven-day win streak, its longest stretch of advances since July. It had fallen as much as 0.8 percent in the day. The NSE Nifty 50 Index also slipped 0.1 percent.
The Fed’s statement stoked concerns that policy will choke economic growth. Policymakers cut forecasts for interest-rate hikes next year to two from three, though some say the markets had been priced for just one.
- Twelve of the 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of telecom shares.
- Reliance Industries Ltd. and ICICI Bank Ltd. were the biggest drags on the benchmark; State Bank of India Ltd. was the worst performer on the gauge.
- The S&P BSE MidCap and S&P BSE SmallCap indexes both advanced for an eighth session, their longest run of gains since early August.
- “It is a wait and watch with the Fed, as higher interest rates in the U.S. would slow inflows to emerging-market assets like India,” said Jitendra Panda, managing director at Peerless Securities Ltd. in Kolkata. “The small correction will be another opportunity to buy, and we are seeing this happen in the mid- and small-cap segments.”
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