Sensex, Nifty Edge Lower On Weak Global Cues; IT Stocks Worst Hit

The Indian equity benchmarks edged lower on Thursday mirroring losses in global markets ahead of weekly expiry of index futures and option contracts. The Sensex fell as much as 484 points and Nifty 50 index touched an intraday low of 17,580.

Overnight, stocks closed lower Wednesday after the Federal Reserve made another big interest rate hike and sharply increased its outlook for how high it expects to raise rates in coming months.

Short-term Treasury yields pushed further into multiyear highs after the central bank raised its benchmark rate by three-quarters of a point. The Fed also said it now expects that rate to be a full percentage point higher by the end of the year than it had predicted in June.

“We have got to get inflation behind us,” Fed Chair Jerome Powell said during a press conference. “I wish there were a painless way to do that. There isn’t.”

The S&P 500 fell 1.7 per cent to its lowest level since mid-July after wavering between gains and losses as traders considered the impact of the Fed’s update on interest rates, which have widespread effects on markets and the economy.

The Dow Jones Industrial Average also fell 1.7 per cent after flipping between gains and losses. The Nasdaq composite lost 1.8 per cent. The major indexes are on pace for their fifth weekly loss in six weeks.

Back home, as of 9:27 am, the Sensex was down 294 points at 59,162 and Nifty 50 index dropped 61 points to 17,656.

Ten of 15 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty IT index's nearly 1 per cent decline. Nifty Oil & Gas, Consumer Durables, Healthcare, Private Bank, Financial Services and Bank indices also fell between 0.4-1 per cent.

On the other hand, Auto, FMCG, Media and PSU Bank shares were witnessing buying interest.

Mid- and small-cap shares were outperforming their larger peers as Nifty Midcap 100 index rose 0.03 per cent while Nifty Smallcap 100 index advanced 0.31 per cent.

SBI Life was top Nifty loser, the stock fell 1.55 per cent to Rs 1,286. ONGC, HDFC, Bajaj Finserv, Cipla, Wipro, HDFC Bank, Tech Mahindra Dr Reddy's Labs, HCL Technologies and Power Grid also declined between 0.8-1.4 per cent.

On the flipside, Adani Ports, Shree Cements, Britannia Industries, ITC, Eicher Motors, Maruti Suzuki, IndusInd Bank, Tata Steel and Bajaj Finance were among the gainers.

The overall market breadth was positive as 1,830 shares were advancing while 943 were declining on the BSE.