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The benchmark indices extended their losses to trade around 1 per cent lower in the afternoon on Thursday.
The market bounced back in opening trade tracking positive global cues, as the US Fed announced a rate hike on expected lines at 0.75 percentage points. However, the indices erased their early gains to trade lower, witnessing across-the-board selling.
At 1 pm, the BSE Sensex was trading at 52,060.47, down 480.92 points or 0.92 per cent. It recorded an intraday high of 53,142.50 and a low of 52,001.57. The Nifty 50 was down 1.02 per cent or 160.15 points at 15,532.00, near the day’s low of 15,505.95. It recorded an intraday high of 15,863.15.
ICICI Bank, Britannia, Asian Paints, Maruti and Hindustan Unilever were the top gainers on the Nifty 50, while Tata Steel, Hindalco, Cipla, ONGC and Bharti Airtel were the top losers.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “Along with the highest rate hike in 28 years, the Fed chief delivered a clear message that “we have the tools and resolve to achieve price stability”. Also, the Fed is significantly reducing the size of its balance sheet.”
“This has negative implications for equity markets globally. Any relief rally is unlikely to last long. In India, sustained FPI selling is an additional headwind. Investors may follow a cautious investment strategy without taking aggressive bets,” Dr Vijayakumar added.
All in red
All the sectoral indices were trading in the red.
Nifty Metal was down over 3 per cent, while Nifty Realty was down nearly 3 per cent. Nifty Auto, Nifty IT, Nifty Pharma, Nifty Healthcare, Nifty PSU Bank, Nifty Consumer Durables and Nifty Oil & Gas were each down over 1 per cent.
Broader indices
The broader market faced increased pressure.
The Nifty Midcap 50 was down 1.46 per cent, while the Nifty Smallcap 50 was down 2.39 per cent. The S&P BSE Midcap was down 1.42 per cent, while the S&P BSE Smallcap was down 1.97 per cent.
The volatility index rose 0.07 per cent to 22.17.
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