Sensex, Nifty open lower after US Fed rate hike

DN Bureau

Benchmark indices fell sharply in early trade Thursday on weak global cues after the US Federal Reserve raised its key interest rate for the fourth time this year, and signalled more, but slower pace of rate hikes next year.

File Photo
File Photo

Mumbai: Benchmark indices fell sharply in early trade Thursday on weak global cues after the US Federal Reserve raised its key interest rate for the fourth time this year, and signalled more, but slower pace of rate hikes next year.

After opening over 250 points down, the 30-share Sensex was trading 166.63 points, or 0.46 per cent, lower at 36,317.70. The index had ended 137.25 points, or 0.38 per cent, at 36,484.33 Wednesday.

Also Read: Sensex, Nifty turn cautious on mixed global cues

The NSE Nifty, too, was trading 56.70 points, or 0.52 per cent, lower at 10,910.60.

The Fed's move came despite US President Donald Trump's attacks in recent weeks on its rate hikes and on Chairman Jerome Powell personally. The president had complained that the moves are threatening the economy.

Metal index was the biggest loser on both exchanges, followed by banking and auto indices.

While, gainers include Asian Paints, Yes Bank, M&M, Sun Pharma and Axis Bank, rising up to 2 per cent.

On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,209.21 crore Wednesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 481.46 crore, provisional data available with BSE showed.

The rupee, meanwhile, weakened against the US dollar, and was trading at 70.54 a dollar.

Also Read: Sensex reclaims 36,000, surges 307 pts

Global oil prices eased further. Brent crude, the international benchmark, was trading 1.42 per cent lower at USD 56.43 per barrel.

The US Dow Jones Industrial Average ended 351.98 points, or 1.49 0.35 per cent, lower at 23,323.66 Wednesday. (PTI)

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