INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Sustained selling in majority of sectors, led by IT, bank and consumer durables, in the light of weak global cues weighed on
market sentiment, as benchmarks Nifty and Sensex snapped their 3-day winning streak on Thursday.
Participants' risk appetite took a hit from
negative global sentiment after the US Federal Reserve raised interest rates for the second time this year and hinted at two more hikes in
2018.
Besides, concerns over widening current account deficit (CAD) at home and data showing lower-than-expected Chinese factory output also
hit sentiment.
Also, a government data released on Thursday showed that the Wholesale Price Index (WPI) based inflation shot up to a
14-month high of 4.43 per cent in May on increasing fuel prices.
Earlier this week, a data released by the Central Statistics Office on
Tuesday revealed that the retail inflation rose to a four-month high in May, led by rising prices of food items.
All these factors dragged
Sensex down by 139 points or 0.39 per cent to 35,600 on Thursday
However, Nifty managed to hold the psychologically important level of 10,800
The 50-share index settled 49 points, or 0.45 per cent, down to 10,808.
In the Nifty pack, 20 stocks settled in the green and 30 in the red
The Sensex index saw 14 stocks advancing and 17 declining at the end of today's session.
“We believe one should remain cautious in the
market due to global sentiments, movement of the rupee and crude oil prices
Monetary policy meetings in Europe and Japan would be closely tracked
Citing high volatility in the indices in the near term, we advise traders to strictly hedge their risky leveraged positions
However, investors can continue to focus on fundamentally sound companies on dips,” said Jayant Manglik, President, Religare
Broking.
Broader markets ended mixed as BSE Midcap index slipped by 0.08 per cent, while smallcap index edged up by 0.07 per cent.
Sun
Pharma, YES Bank and IndusInd Bank led the pack of Sensex gainers.
Sun Pharma rose 2.57 per cent on BSE on Thursday
The drug maker has been rising since its Halol plant in Gujarat got clearance from the USFDA.
On the other side, ICICI Bank, Adani Ports and
Tata Consultancy Services remained the top losers in the Sensex index.
Tata Consultancy Services said its board will consider a proposal to
buy back shares on Friday, with analysts expecting it to be at that same level as the one in 2017.
A majority of sectors on BSE finished the
But, pharma index bucked the trend, rising up to 1.47 per cent.
Global stocks were subdued after the US Fed hiked rate for the second time
this year and hinted at two more hikes.
Equities across Europe sold off, with investors positioning for a European Central Bank policy shift
following a hawkish outlook from the US Federal Reserve, Reuters reported.
