Sensex Today: Indian shares were treading water on Wednesday as investors braced for a hefty rate hike from the US Federal Reserve and clues on further hikes. The Fed is largely expected to hike the policy rate by 75 basis points, but there is a mild possibility of 100-bps hike as well, analysts said.
That apart, Russian President Vladimir Putin’s partial military mobilization in Russia, which has put the country’s people and economy on a wartime footing as Moscow’s invasion of Ukraine continued, also kept risk appetite in check.
Against these wobbly global cues, the S&P BSE Sensex fell around 444 points in the intra-day day. The index recouped some of the losses to end 263 points, or 0.44 per cent, lower at 59,457.
The NSE Nifty50, on the other hand, bounced back from a low of 17,663.60 to end at 17,718, down 98 points or 0.55 per cent. In the broader market, Nifty MidCap and SmallCap indices mildly underperformed the frontline indices as they fell 0.7 per cent, and 1 per cent, respectively.
Among sectors, the Nifty FMCG index was the sole gainer, rising 1.2 per cent. The losses, meanwhile, were led by the Nifty Metal index (down 2 per cent), the Nifty Pharma index (1.4 per cent), and the Nifty Oil & Gas index (1.2 per cent).
Anand James – Chief Market Strategist at Geojit Financial Services, said: “The bullish exhaustion that emerged after entering the 17,860-960 band hints at a full-fledged reversal, but we are inclined to look for a bounce back from the 17,700 vicinity. However, a close below the same today could substantially increase the odds of a 17000-16650 plunge, though one may wait for a break of 17,430 as confirmation.”
Global Cues
Stocks in Asia sank and bond yields were elevated on Wednesday, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve later in the day. Japan’s Nikkei dropped 1.26% and touched a two-week low. Australia’s benchmark share index slid 1.35% and South Korea’s Kospi fell 0.9%.
Tokyo stocks opened lower Wednesday, extending falls on Wall Street ahead of a Federal Reserve meeting widely expected to produce a three-quarter-point interest rate hike.
Wall Street ended Tuesday lower as the eve of a U.S. Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the U.S. central bank wants to tame.
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