Sensex, Nifty Snap Seven-Day Rally On Fed Disappointment
Closing Bell: Sensex, Nifty Snap Seven-Day Rally
Indian equity benchmarks snapped their seven-day winning streak after the Federal Reserve raised borrowing costs for the fourth time this year and indicated two more hikes next year.
The S&P BSE Sensex fell 0.14 percent or 53 points to 36,432 and the NSE Nifty 50 Index declined 0.14 percent or 16 points to 10,952.
Twelve of 19 sector gauges compiled by BSE were ended lower led by the S&P BSE Telecom Index's 1.2 percent decline. On the flipside, S&P BSE Industrials Index was top gainer, up 0.4 percent.
Reliance Industries, ICICI Bank and State Bank of India were among the biggest drags on the Sensex.
ONGC Board Approves Share Buyback Proposal
Shares of the state-run oil refiner rose 0.4 percent to Rs 148.80 after its board approved share buyback proposal.
ONGC will buy back shares for up to Rs 4,022 crore representing 2.34 percent stake in the company at Rs 159 per share, the company said in an exchange filing.
Government likely to garner Rs 2,714 crore from the share buyback.
Stocks Tumble on Deepening Fears of a Fed Mistake
Stocks tumbled in Europe and Asia on Thursday while U.S. equity futures fell as investors expressed concern about a lack of relief from the Federal Reserve’s monetary tightening. The dollar weakened and the yen jumped.
The sell-off that began Wednesday afternoon with Fed Chairman Jerome Powell’s downplaying of the implications of market volatility, and his commitment to continue reversing quantitative easing, gathered pace hours later in Asia and Europe. More than two thirds of Stoxx Europe 600 members were down, with Japanese shares sliding into a bear market.
Mercator Surges After Winning Rs 168 Crore Dredging Contract
Shares of the Mumbai-based company rose as much as 4.3 percent to Rs 13.60 after it emerged as the lowest bidder for dredging contract at Paradip Port.
Bid is for three-year maintenance of dredging at Paradip Port, Mercator said in an exchange filing.
Container Corporation Drops After Announcing Bonus Shares
Shares of the cargo services provider erased gains and fell as much as 1.87 percent to Rs 656 after its board approved bonus issue of one share of every four shares held.