Snapping a three-day gaining streak, the Indian equity markets opened on a negative note on Thursday, with the Sensex falling over 100 points and the NSE Nifty50 down almost 40 points. The domestic bourses followed its Asian peers which slipped after the US Federal Reserve on Wednesday raised the key lending rates by 25 basis points and signaled towards two more rate-hikes this year at a much faster pace. Shares of SBI, Axis Bank, ICICI Bank, NTPC, Wipro and Coal India were the top losers on the BSE during early morning trade.
The Sensex — which opened at 35,743.10 points — dropped 126.09 points to hit an intra-day low of 35,613.07 points on Thursday. The Nifty50 slipped by 40.7 points to a low of 10,816 points. Among the 19 sectoral indices of the BSE, 16 traded in the red led by banking, IT, oil and gas, and capital goods stocks. The market sentiment was bearish as 682 companies declined as compared to 511 advances among a total of 1,240 companies trading on the BSE.
On Thursday, Asian markets drifted lower amid concerns about US-China trade frictions and more rate-hikes signaled by the US Federal Reserve, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.25 per cent in early trade, South Korea’s KOSPI was off 0.9 per cent, while Japan’s Nikkei shed 0.7 percent. On Wednesday, the Dow Jones Industrial Average fell by 0.47 per cent, the S&P 500 lost 0.40 per cent and the Nasdaq Composite dropped 0.11 percent following the US rate hike.