BackMarkets fell after fed's hawkish hints
Further downsides are likely once the immediate support of 11,072 is broken, said analystSensex fell 0.62% to 37,270 while Nifty was down 0.68%, in the early trade
PremiumMumbai:Indian equities on Thursday fell nearly 0.6%, tracking weakness in global peers which declined following comments from the US Federal Reserve chairman Jerome Powell that were more hawkish than expected.
At 9.30 am, the benchmark Sensex index was down 0.6% at 37270 points, while the 50-share Nifty was down nearly 0.7% at 11042.95 points. On overnight trade, the Dow Jones index fell 1.2%, while the S&P 500 declined 1%. In early deals on Thursday, among Asian equities, Hang Seng fell 0.7%, while Nikkei was down 0.03%.
"Markets fell as Fed cuts rates by 25 basis points, but indicates unclear status on further policy. Markets had priced in 25 basis points and were looking for more dovish language which saw sharp disappointment", said IIFL Securities in a note to its investors.
Delivering on the widely expected 25 basis point interest rate cut, Powell said the rate cut--a first since the financial crisis of 2008--was to “insure against downside risks" but did not signal the start of a lengthy easing cycle, drawing a sharp rebuke from President Donald Trump. The central bank cited “global developments" along with “muted inflation" as reasons for easing monetary conditions.
According to Deepak Jasani, head retail research HDFC Securities, the downward trend will remain as long as the Nifty does not close above 11154. Further downside is likely once the immediate support of 11072 is broken.
Zee Entertainment Enterprises Ltd fell 2% after reports of Subhash Chandra’s Essel group agreeing to sell an 11% stake in Zee Entertainment Enterprises Ltd (ZEEL) for Rs4,224 crore to Invesco Oppenheimer Developing Markets Fund, as controlling shareholders of the broadcaster attempt to pay off debts before a September deadline.
Bharti Airtel, Tata Power Company, Marico, Godrej Consumer Products, Ceat, GlaxoSmithKline Consumer Healthcare, and ICRA, among others, will announce their June quarter results today.
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