Global cues drag Sensex 139 pts after Fed rate hike; Midcap outperforms

Mumbai, Jun 14: Benchmark indices ended volatile session in the red on Thursday as investors after digesting Fed rate hike cautiously await European Central Bank policy rate decision due later in the day.
The 30-share BSE Sensex recovered more than 100 points from day’s low in later part of the session, ending down 139.34 points at 35,599.82.
The 50-share NSE Nifty managed to close the session above 10,800 levels, falling 48.70 points to 10,808.
The Nifty Midcap index recovered more than 100 points from day’s low to end in the green but the market breadth remained in favour of bears as about 918 shares declined against 787 advancing shares on the NSE.
European stocks traded lower as traders await ECB policy rate decision due later in the day while Asian markets ended in the red after US Federal Reserve indicated more rate hikes going ahead. Japan’s Nikkei and Hong Kong’s Hang Seng were down 1 percent each while South Korea’s Kospi slipped 1.8 percent.
The US Federal Reserve raised interest rate by 25 basis points to a range of between 1.75 percent and 2 percent and indicated two more rate hikes in 2018.
Back home, IT, Banking & Financials, FMCG and Infra stocks pulled the market lower while pharma sector outperformed.
Infosys slipped 2.75 percent after the stock price adjusted for dividend while TCS and Tech Mahindra shed 2 percent. Mindtree lost 3.5 percent after global research firm Citi downgraded the stock to Sell from Neutral but raised target price to Rs 970 from Rs 875 per share. The Nifty IT index was down 1.5 percent.
The Nifty Pharma index gained 1.8 percent. Siddharth Sedani, Head & Vice President – Equity Advisory, Anand Rathi Shares and Stock Brokers said pharmaceutical companies have broadly corrected a lot from their all time highs and are now available at reasonable valuations making them attractive to long term investors.
Sun Pharma rallied 2 percent while Lupin gained 3 percent on getting approval from the USFDA for generic Drospirenone, Ethinyl Estradiol, Levomefolate Calcium tablets and Levomefolate Calcium tablets.
Alembic Pharma shares rose 3 percent on approval from US FDA for Doxycyclin Hyclate capsules USP (50 mg-100 mg).
Cipla was up 1 percent as the company has received approval for its abbreviated new drug application (ANDA) for Isoproterenol Hydrochloride Injection from the USFDA. In addition, Cipla’s Ugandan subsidiary Quality Chemical Industries is evaluating an initial public offering and Renaissance Capital (Kenya) Limited has been appointed as the official book runner. Reliance Industries, which helped the market recover some losses in later part of the session, ended at record closing high of Rs 1,007.95 (up half a percent).
Punj Lloyd shares plunged 11 percent after ICICI Bank has dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under the Insolvency & Bankruptcy Code (IBC).