The BSE Sensex and NSE Nifty slipped over a percentage point on Thursday on account of selling in frontline blue chip counters. Sensex settled the day 304.89 points down at 25,399.72, while Nifty slid 86.75 points to 7,783.40.
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Here are 5 reasons which dampened market sentiment in Thursday’s trade:
1) Asian equity markets ended mostly lower on Thursday, with risk sentiment hurt by falling commodity prices and a surging dollar, after the Federal Reserve’s April meeting minutes revealed ‘most’ members have a strong bias for raising rates as early as June, based on how the economy evolves.
2) European market fell on Thursday, with weaker oil and metals prices putting pressure on commodity stocks.
3) Possibility of an interest rate hike by the US Federal Reserve as early as June further dampened market sentiments. Minutes released on Wednesday showed Fed officials said it would be appropriate to raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment. The minutes come a day after comments from Fed officials had appeared to signal potential rate hikes.
4) The rupee plummeted 23 paise against the US dollar to 67.20 in early trade on Thursday, its weakest level since March, due to appreciation of dollar amid foreign fund outflows.
5) Weak corporate results further dented market mood. Public sector lenders Punjab National Bank and Corporation Bank fell nearly 3 per cent and 4.5 per cent respectively, after reporting quarterly losses on Wednesday. Ten of the 17 state-run banks that have reported March-quarter results posted a combined net loss of Rs 15,320 crore.