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Market opens lower post Fed rate hike; Nifty near 17,050

Published on Mar 23, 2023 09:34

The frontline indices were trading with modest losses in early trade tracking global cues. The Nifty traded below the 17,100 level. Pharma, healthcare and media stocks advanced while IT, PSU bank and financial services shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 364.17 points or 0.63% to 57,850.42. The Nifty 50 index lost 99.80 points or 0.58% to 17,052.10.

In the broader market, the S&P BSE Mid-Cap index fell 0.35% while the S&P BSE Small-Cap index slipped 0.08%.

The market breadth was positive. On the BSE, 1,367 shares rose and 1,206 shares fell. A total of 99 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 61.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 383.51 crore in the Indian equity market on 22 March, provisional data showed.

The US Fed hiked rates by 25 basis points, which is in line with the market expectations amid turmoil in the US banking sector.

Stocks in Spotlight:

Hero MotoCorp rose 0.76%. Hero MotoCorp will make an upward revision in the ex-showroom prices of its select motorcycles and scooters, effective from 1 April 2023. The price revision will be around 2% and the exact quantum of increase will vary by specific models and markets. The price revision has been necessitated mainly due to cost increases on account of OBD 2 transition.

Hindustan Aeronautics (HAL) tumbled 5.28%. The President of India is planning to sell up to 3.5% stake in the aerospace and defence company through an offer for sale (OFS). The offer will open on March 23 for non-retail investors and on March 24 for retail investors. The floor price for the stake sale is set at Rs 2,450 per share.

Indraprastha Gas (IGL) added 0.73% and Bharat Heavy Electricals (Bhel) was up 0.45%. IGL and Bhel have signed an MoU for joint collaboration for development, manufacturing & deployment of Type-IV Cylinders (CNG and/or Hydrogen), Hydrogen blending in City Gas Distribution (CGD) and Fuel cell based power backup system.

Numbers to track:

The yield on India`s 10-year benchmark federal paper declined to 7.322 from 7.354 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.2650, compared with its close of 82.5950 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement lost 0.88% to Rs 59,275.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.22% to 102.12.

The United States 10-year bond yield declined 1.29% to 3.455.

In the commodities market, Brent crude for May 2023 settlement shed 66 cents or 0.86% to $76.03 a barrel.

Global Markets:

Asian stocks were trading mostly lower on Thursday, following Wall Street`s reaction overnight after the U.S. Federal Reserve hiked rates by another 25 basis points.

US stocks end sharply lower on Wednesday after the U.S. Federal Reserve delivered a widely expected 25 basis point policy hike. U.S. Federal Reserve Chair Jerome Powell re-stated his commitment to curbing inflation, including the possibility of more interest rate rises.

The Federal Reserve hiked its benchmark interest rate by another 25 basis points, in line with Wall Street`s predictions. The increase takes the benchmark federal funds rate to a target range between 4.75%-5%.

The Federal Open Market Committee said in a post-meeting statement that it �will closely monitor incoming information and assess the implications for monetary policy.� Fed projections call for just one more hike this year.

Treasury Secretary Janet Yellen said Wednesday that the FDIC was not considering providing �blanket insurance� for banking deposits. Yellen made the remarks at a hearing of a U.S. Senate appropriations subcommittee. Yellen said the administration was not considering expanding bank deposit guarantees beyond the current limit of $250,000, as per reports.

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