Sensex falls 130 pts, Midcap index dips 1% on global cues

 

Mumbai, Mar 22: The extended selling pressure in late trade pushed the Sensex more than 100 points down on Thursday, following global weakness after the Federal Reserve’s first rate hike of the year.
Banks, oil marketing companies and technology stocks dragged the market while Reliance Industries, ONGC and Tata Motors limited losses.
The 30-share BSE Sensex was down 129.91 points at 33,006.27 and the 50-share NSE Nifty fell 47.20 points to 10,108.10 amid volatility.
Midcaps underperformed frontliners throughout the session, with the Nifty Midcap index falling 0.84 percent on weak market breadth. About three shares declined for every share rising on the BSE.
Meanwhile, the US Federal Reserve announced the first interest rate hike of the year, raising interest rates by 25 bps to 1.75 percent. New Fed Chairman Jerome Powell kept policy path unchanged in 2018 and sees 2 more rate hikes. The central bank also raised its GDP projection for 2018 and 2019.
European stocks traded lower as traders reacted to a rate hike from the US Federal Reserve. France CAC and Germany DAX were down 1 percent each while Britain FTSE declined 0.6 percent at the time of writing this article.
Asian markets closed mixed. Japan’s Nikkei 225 rose 0.99 percent while China’s Shanghai Composite, Hong Kong’s Hang Seng and Australia’s ASX 200 fell 0.2-1 percent.
Back home, all sectoral indices ended in the red barring metals. PSU Bank index fell 2 percent and IT index lost 1 percent. Nifty Bank was down half a percent on the day of weekly expiry.
On the stocks front, oil retailers HPCL, BPCL and IOC were down 1-4 percent after sharp increase in global crude oil prices overnight due to surprise decline in the US crude inventories. However, ONGC and Oil India gained 2-3 percent.
SBI, ICICI Bank and Maruti Suzuki slipped 2-2.6 percent followed by Axis Bank, HDFC, TCS, L&T and Infosys whereas Reliance Industries, Vedanta, Tata Motors, IndusInd Bank and Hindalco Industries gained 1-2 percent.
Sun Pharma was up 0.77 percent after the company received approval from the US FDA for ILUMYA (tildrakizumab-asmn), which is used for the treatment of moderate-to-severe plaque psoriasis.