Sensex, Nifty Halt Three-Day Winning Streak On Hawkish Fed
Indian equity benchmarks halted three-day winning streak on weak global cues after U.S. Federal Reserve raised benchmark rates and hinted at prospect of two more rate hikes for calendar year 2018.
The S&P BSE Sensex fell 0.39 percent or 139 points to 35,600 and the NSE Nifty 50 index declined 0.45 percent or 49 points to 10,808.
Street was expecting three rate hikes for 2018 but Fed signalled four, which is very negative for emerging market currencies, AK Prabhakar, head of research at IDBI Capital Market, told BloombergQuint over the phone. “Rate deferential is very low and money will flow to the U.S. We will have to hike rates very soon and that will keep pressure on our markets.”
Moreover, if European Central Bank announces a road map for winding down or withdrawing quantitative easing, that will add to the negative sentiment, Prabhakar said.
Fifteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Information Technology index's 1.2 percent drop. On the other hand, the S&P BSE Healthcare index rose for seventh day in a row, the index climbed 1.5 percent.
RIL, Alembic Pharma Among Fab Four Stocks Of The Day
- ICICI Securities: The Mumbai-based brokerage firm rose as much as 3.43 percent to Rs 369.25 after CLSA initiated coverage on the stock with a 'buy' for target price of Rs 520.
- Alembic Pharma: The Vadodara-based drugmaker rose as much as 7.74 percent to Rs 529.90 after the U.S. drug regulator approved Doxycycline Hyclate capsules, Alembic Pharma said in an exchange filing.
- Hindusthan National Glass: The Kolkata-based glass bottle maker was locked in a 20 percent upper circuit at Rs 89 after sold 11.23 percent stake in HNG Float Glass JV for $19.3 million to Trakya Cam Sanayii AS.
- Reliance Industries: The Mukesh Ambani-led oil-to-telecom conglomerate rose in 10 out of 11 sessions to a record of Rs 1,012. The stock has gained 8.5 percent so far this month.
Hawkish Fed, China Surprises Derail Risk Appetite
The mood in global markets was risk-off on Thursday, as investors came to terms with the prospect of faster-than-expected U.S. interest rate hikes and a raft of disappointing data out of China. A looming European rate decision added another layer of uncertainty.
ITDC Locked In Upper Circuit On Heavy Volumes
Shares of the Delhi-based state-run tourism development firm rose 20 percent, the most in over a month, to hit an upper circuit of Rs 465.05.
Trading volume 8.3 times its 20-day average.
Stocks Moving On Heavy Volumes
- Gujarat Gas: The Ahmedabad-based city gas distribution company fell 0.12 percent to Rs 820. Trading volume was 17.5 times its 20-day average.
- Vinati Organics: The Maharashtra-based chemical maker fell 1.48 percent to Rs 974.25. Trading volume was 9.1 times its 20-day average.
- SKF India: The Mumbai-based metal ball and bearings maker fell 1.1 percent to Rs 1,784. Trading volume was 2.7 times its 20-day average.
- Eris Lifesciences: The Ahmedabad-based drugmaker fell 2.2 percent to Rs 750. Trading volume was 6.4 times its 20-day average.